U.S.-Canada Tariff Fallout Hits Business Events 


Canadian flag in front of Parliament Building

Skift Take

The Trump administration’s new tariffs and government travel restrictions are dealing a blow to cross-border business events. With U.S. delegate attendance declining and high-profile cancellations like Canada House at SXSW, the industry faces mounting challenges.

The Trump administration's new 25% tariff on Canadian goods is already impacting the meetings and events industry.  

”I have had one client try to cancel their leadership summit in Chicago, one client who is in the manufacturing industry scale back their 75th anniversary and is now planning it in-house, and one client who was looking at a destination event in Mexico put their plans on hold,” said Anh Nguyen, principal and co-founder of Spark Event Collective, based in Calgary, Canada.

One high-profile event cancellation is Telefilm’s Canada House, an annual part of South by Southwest (SXSW) in Austin. This initiative gathers Canada’s film, tech, and music sectors in a networking space to promote the country’s creative industries.

“Telefilm relies on partnerships to ensure financial viability. Unfortunately, due to the withdrawal of key financial partners, we have had to make the difficult decision to pause the Canada House, as we could not sustain the same level of investments,” it said in a statement.

Egale Canada Pulls Out of UN Event

Egale Canada, an LGBTQ2S+ advocacy group, is boycotting travel to the U.S. and, as a result, will not attend the 69th annual Commission on the Status of Women (CSW68), the United Nation’s largest annual gathering on gender equality and women’s empowerment, taking place March 10–21.

“This decision is foremost based on the need to safeguard our trans and non-binary staff, who would face questionable treatment at land and aviation borders to attend such convenings, and to stand in solidarity with global colleagues who are experiencing similar fear around entry to the U.S.,” Egale said in a statement.

“It is also founded in the unique situation that has been thrust on Canadians, and citizens of other countries, regarding economic warfare and threats to our national sovereignty. We cannot, in good conscience, engage in a process of disentangling our organization from U.S. goods and services and then proceed to travel to the U.S.”

Billions Could be Lost on Travel Due to Tariffs

U.S. Travel has estimated that the potential impact from tariffs could result in $2.1 billion in lost spending on travel, which represents a 10% decline in overall inbound visitation from Canada.

Canada is the top source of international visitors to the U.S., with approximately 20.4 million visiting last year. 

The Event Leaders Exchange (ELX) had an emergency virtual call last week after members expressed the need to talk about the implications of the current political landscape. This includes restrictions some member companies in Canada are starting to implement on travel into the U.S.

“Event leaders are facing new challenges as the political and cultural landscape constantly shifts. We need as an industry to stand up and take the lead in advocating for the power of events, so we don’t end up in a situation similar to what happened during the economic crisis,” said Nicola Kastner, CEO of ELX.

Meetings Mean Business Canada Reacts

Meetings Mean Business Canada (MMBC), an advocacy group for the Canadian meetings and business events industry, has engaged the Toronto-based PR and public affairs firm Crestview Strategy to help navigate government relations and strategic planning.

“Cross-border business travel is a critical economic driver, but shifting international policies can put thousands of Canadian jobs at risk. We’re asking the federal government to act swiftly in support of our sector so that all countries will consider Canada a top choice to host international business events,” said Minto Schneider, the MMBC chair.  

The number of U.S.-based attendees attending conferences in Canada has decreased since the Trump administration policies have been implemented, Schneider added.

Among them, an executive order signed in late February that now requires written justification for government employees to attend conferences.

MMBC is urging the Canadian government to boost its commitment to the International Convention Attraction Fund (ICAF) beyond its scheduled expiration in 2027. Since launching in 2024, ICAF, a Destination Canada program, has helped secure 21 international business events, generating $122.2 million in direct economic impact.

Many companies are closely watching the situation. IG Wealth Management, based in Winnipeg, is one. Angie Pfeifer, VP of field and corporate event marketing, said there have been attendee concerns about continuing to proceed with U.S.-based programs, but as of now, they are staying the course.

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