The ripple effect of Trump's tariff war with Canada on Nashville's local economy
Nashville, Tennessee — In Music City, there are early signs that President Trump's trade war with Canada is striking the wrong chord. Around half of Nashville's international visitors come from Canada, according to the nonprofit Nashville Convention & Visitors Corp.
But Canadians are not crossing the border in the numbers they once did, angry about the president's tariffs on Canadian goods not covered by the U.S.-Mexico-Canada trade agreement and his disparaging remarks towards America's northern neighbor.
Bill DeMain, a musician who runs the walking tour company Walkin' Nashville, says Canadians normally make up about a third of his clientele.
"I can feel the effects of it immediately," DeMain said of Trump's tariffs. "…There's a financial group from Toronto that I've worked with for years. They had a tour on my books for May, for 28 people, and they cancelled it."
He says it was "more than a sense" that they canceled because of the trade war, he "was absolutely sure" that was the reason.
Nashville has direct flights from six destinations in Canada, according to Nashville International Airport. However, last month, Edmonton-based Flair Airlines canceled its service, leaving WestJet and Air Canada as the only two carriers offering nonstop service between Canada and Nashville.
Advanced bookings from several major Canadian cities to the U.S. are down about 20%, according to data from aviation analytics firm Cirium.
The U.S. Travel Association says just a 10% dip in Canadian travel to the U.S. for the year could result in over $2 billion in lost spending. "It's a huge generator of our downtown income," said Nashville City Councilman Jacob Kupin, who represents downtown Nashville.
In 2023, city tourism generated over $10 billion, according to Nashville city data.
Kupin is concerned that a trade war with Canada will ultimately hurt Nashville's economy.
"If it's lowering tourism, it does hurt the local economy, right?" Kupin said. "It does hurt the local businesses and local folks that are trying to make money and make a living. They're gonna see it first, right? The tour guide on the street's gonna know earlier what's going on, and kind of see the drop in traffic."
It's a sour note DeMain says is getting louder as his Canadian cancelations keep climbing.
DeMain says his message to Canadians "would be one of love," and he would tell them, "Come see me if you're uncomfortable with the rest of it, just, I'll be here for you."
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