TL;DR

Trump’s new travel restrictions on Canadians, combined with souring international relations, threaten to devastate the US tourism sector and ripple through the broader economy. The irony? The US is alienating its biggest customer.

Story

Trump’s new travel barriers for Canadians—requiring stays over 30 days to register with fingerprints—sound like a minor inconvenience. They’re not. This move threatens to decimate US tourism, an industry already teetering on the brink.

Think of it like this: you slam the door on your biggest customer (Canadians make up 30% of US tourism). Then, you insult them by implying they’re all potential criminals needing fingerprinting. What happens? They take their billions elsewhere. And guess what? This isn’t happening in a vacuum.

This policy, combined with escalating trade wars, has Canadians feeling like unwelcome guests. One million “snowbirds” alone pump $6.5 billion into Florida’s economy every winter. Now? They’re eyeing warmer, friendlier climates.

‣ Snowbirds: Canadians who travel south for the winter.

The ripple effect? Bankruptcies for small businesses. Empty hotels. Airlines scrambling for passengers. REITs collapsing under the weight of vacant properties. Remember 2008? The subprime crisis started with seemingly small cracks in the foundation. This feels eerily similar.

Beyond the immediate economic fallout, there’s the long-term damage to US-Canadian relations. Even if these policies reverse, the sting of distrust lingers. Canadians, like any scorned customer, have long memories. They’ll find other places to spend their money. And good luck replacing that lost revenue stream.

This isn’t just about tourism. It’s a cautionary tale of how political grandstanding can cripple an economy faster than any recession. The US just shot itself in the foot. And it chose the biggest gun it could find. Don’t be surprised when the recoil sends the whole body tumbling.

Advice

Diversify your investments beyond US tourism-dependent sectors. Political risks are real, and they can decimate entire industries faster than you can say ‘recession’.

Source

https://www.reddit.com/r/stocks/comments/1j9zdif/trump_new_travel_barriers_for_canadian_tourists/