Canadians are folding on Vegas. Democrats see a royal flush.

Politics — 2026-05-25 06:55:00 — www.politico.com

Trump’s Trade War Drives Canadians from Las Vegas, Impacting Local Economy

President Donald Trump’s trade war has had significant repercussions for Las Vegas, particularly affecting the influx of Canadian tourists. As the peak tourism season approaches, Democrats are leveraging the downturn in Canadian visitors to bolster their chances in Nevada’s battleground districts ahead of the November elections.

Last year, as Trump imposed tariffs on Canada, visits from Canadians—who make up a substantial portion of Las Vegas’ foreign tourism—dropped by 17 percent. This decline contributed to a 7.5 percent year-over-year decrease in total tourist visits, marking 2025 as the worst non-pandemic year for Las Vegas since record-keeping began in 1970. “Trump instituted his reckless tariffs. In response, Canadians have literally boycotted traveling to America,” said Rep. Susie Lee (D-Nev.), whose Las Vegas-area seat is a top target for Republicans. “That has had a significant impact on our tourism.”

Political Ramifications in a Battleground State

Trump narrowly won Lee’s district in 2024, and nearly flipped two other Democratic-held districts in the Las Vegas area. While Republicans are less optimistic about flipping these seats than they were a year ago, they still view Lee’s district as a prime opportunity.

The political landscape in Nevada illustrates how international trade policies can influence local elections. Unlike states with large manufacturing sectors affected by tariffs, Nevada’s economy relies heavily on tourism, particularly from Canada, which constitutes 25 to 50 percent of Las Vegas’ foreign tourism market.

Republican Responses and Economic Context

In response to the tourism slump, spokespeople for the Republican National Committee and the National Republican Congressional Committee criticized Nevada’s Democratic representatives for opposing a reconciliation bill that included a “no tax on tips” provision. “If they actually cared about affordability, they wouldn’t have spent years making Nevada harder and more expensive to live in,” NRCC spokesperson Christian Martinez stated.

Kush Desai, a spokesperson for the White House, emphasized that “the vast majority of Las Vegas tourists are Americans,” asserting that the Trump administration is focused on fostering economic growth through tax cuts and deregulation. However, many Canadians, angered by Trump’s tariffs and his comments about making Canada the “51st state,” have boycotted U.S. products and travel. A POLITICO poll from February indicated that a majority of Canadians now view the U.S. as an unreliable ally.

Local Acknowledgment of the Problem

Even some Nevada Republicans recognize the impact of the tariffs. “The Canadians aren’t coming the way they were. Wonder why that is, huh?” Rep. Mark Amodei (R-Nev.) remarked, acknowledging the “suboptimal” communication surrounding the tariff policies.

The decline in Canadian visitors has severely impacted Las Vegas’s hospitality sector, which relies on high-spending international tourists. Several restaurants have closed recently, citing reduced foot traffic. While employment has increased in entertainment and recreation, hiring in food and accommodation has stagnated, according to Andrew Woods, an economist at the University of Nevada, Las Vegas.

Efforts to Revive Tourism

In an attempt to recover lost business, Las Vegas resorts are offering to exchange Canadian dollars at par with U.S. dollars, effectively providing a 30 percent discount. Additionally, the city’s tourism office has launched a $3.5 million marketing campaign aimed at attracting Canadian visitors. However, overcoming national sentiments of resentment is a challenging task.

“Despite the efforts of our major operators in Las Vegas, the headwinds are coming from these external forces and the policies of this administration, and that’s what’s creating the economic uncertainty that we’re facing right now in Las Vegas,” said Rep. Steven Horsford (D-Nev.), whose district Trump lost by less than three points.

Union Concerns and Future Implications

Overall tourist visits did see a slight uptick in February and March compared to the previous year, but the prior year’s decline has created a significant deficit. Ted Pappageorge, secretary/treasurer of the Culinary Union, which represents 60,000 hospitality workers in Nevada, warned that if visitor numbers do not improve, the union may need to initiate relief efforts similar to those during the COVID-19 pandemic.

“If there’s anything like the reduction in visitation that happened last year, if that happens this year, then we’ll be in relief effort territory for our members,” Pappageorge noted, highlighting the thousands of hours cut for union members due to restaurant closures.

Republican Perspectives on Tariffs

Marty O’Donnell, the GOP front-runner to challenge Lee, has shifted from skepticism to full support of Trump’s tariff policies. “I’m now a convert, because what I see Donald Trump doing with tariffs is not something I ever anticipated,” O’Donnell stated. He added that tariffs are not a primary concern for voters, saying, “I don’t hear anybody complaining about tariffs. I just don’t think it’s an issue.”

Despite some Republicans acknowledging the backlash from Canadians, a strategist noted an uptick in visitors in early 2025 and pointed to Nevada’s job growth as a counter to Democratic critiques. “There are some bright spots,” O’Donnell senior adviser Keith Schipper said. “We’re talking about tariffs less so now than even six months, eight months ago.”

Conclusion: The Broader Economic Landscape

While some economic indicators show promise, the overall impact of Trump’s tariffs on Canadian tourism has left a significant mark on Las Vegas’s economy. With the main industry suffering, Democrats are banking on these economic challenges to sway voters in their favor. As John Oceguera, former Democratic speaker of the Nevada Assembly, noted, “There’s a lot of service industry folks here, and so those folks are in the social circles in town.” The ongoing dialogue about tariffs and their implications will likely continue to shape the political landscape as the November elections approach.

Source: https://www.politico.com/news/2026/05/25/canadians-vegas-democrats-tariffs-nevada-00935098