**North America:** President Trump’s tariff freeze except on China has strained the business events sector, triggering Canadian exhibitor cancellations, travel drops, and supplier cost pressures, while industry groups lobby Washington to ease policies ahead of May’s Legislative Action Day.
On April 9, 2025, President Donald Trump announced a 90-day pause on reciprocal tariffs, except for those imposed on China, maintaining a universal tariff rate of 10% until July 9, 2025. Despite this freeze, tariffs on Mexico and Canada remain at 25% for most goods entering the U.S., with exceptions only for products compliant with the US-Mexico-Canada Agreement. China continues to face a notably higher tariff rate of 145%. These tariff policies have significantly impacted the business events industry, causing market uncertainties and disruptions that are already being felt across North America and beyond.
Trade Show Executive (TSE) engaged with various event organisers and suppliers to assess the tangible effects of these tariffs on the business events sector. One major consequence is the growing anti-American sentiment in Canada, partly driven by the high tariffs and political discourse suggesting the integration of Canada as a U.S. state. Data from U.S. Customs and Border Protection indicated a reduction of 500,000 fewer Canadian travellers entering the U.S. via passenger vehicle in February 2025 compared to the same month in 2024. This decline occurred even before the announcement of the Liberation Day tariff freeze. Supporting this trend, travel data from OAG, a global travel analytics provider, showed that summer flight bookings on Canada-U.S. routes have plummeted by over 70% year-on-year.
This sentiment is manifesting in the event sector, with Canadian exhibitors increasingly cancelling or boycotting U.S.-based events. According to one organiser speaking to TSE, “We are starting to see the following in mid-Q2 and forecast for balance of the year, barring any change in trade policy: decreased exhibitor sales and attendee/buyer participation from Canada, and the Pacific Rim. Traditional, loyal exhibitors from Canada for many events are withholding commitments to participate at this time. Anti-American sentiment is high.”
Suppliers are also feeling the economic strain. One supplier noted, “Imports from Mexico and Canada are up 55%, and while they are not as drastic [as those against China] it still very painful for us to absorb.” Another supplier highlighted the challenge of pricing adjustments, stating, “[We’re thinking about] the cost of hardgoods already sold. Our sales cycle is six months or more, and pre-tariff negotiated pricing does not take this into consideration.”
The American Society of Association Executives (ASAE) recently published an Insight Update revealing that association meeting attendance is declining, particularly among participants from Canada, Europe, and Central Asia, influenced by changing federal policies. TSE also found that Chinese exhibitors and attendees are starting to reduce participation and consider cancellations, further affecting international event dynamics.
Domestically, within the U.S., organisers report the impact of Executive Orders that limit involvement from healthcare, scientific, academic, and government communities in business events. SISO CEO Vinnie Polito commented, “There is no question that Q2 is seeing a decline after an excellent Q1. International arrivals are showing year over year decline across the board but most acutely from Canada. Some organisers are working with the most affected international nations and are altering some terms and conditions in the hope/expectation that things will settle down to something a bit more manageable.”
Polito also mentioned the lifting of the NIH travel ban on April 10, which has allowed a return to previous travel processes for that sector, potentially easing some limitations on participation.
Amid these challenges, some organisers see potential opportunities. One reported, “Our customers are subject to tariffs on their goods and this makes them have to make a decision on increasing prices or absorbing the extra costs and lowering profitability. If they choose to sell at higher prices, they may see less revenue — all of this causes uncertainty, and in uncertain times, customers tend to pause their spending on areas that are variable costs. Marketing in the short term is a variable cost, so, if they need to protect cash, they might cut back on events and media spend — I could also argue that now is the time they need to meet new buyers of their products and could increase event spend but it’s all surrounded by uncertainty.”
An industry vendor observed that while international participation might decline, U.S.-based companies could be more inclined to join events, leveraging the competitive advantage tariffs might provide over foreign exporters.
The Exhibitions and Conferences Alliance (ECA), an advocacy organisation for the B2B events industry, is actively providing resources and encouraging industry professionals to engage with policymakers. ECA offers detailed analysis via its Tariff Resource Center and is organising its Legislative Action Day (ECALAD) on May 29. This event enables industry representatives to engage with elected officials on issues including workforce development, tax reform, and opposing U.S. inbound travel restrictions.
Tommy Goodwin, Vice President of ECA, emphasised the importance of this engagement, saying, “Now more than ever, it’s critical that business and professional events industry leaders and advocates make their voices heard with their elected officials in Washington, D.C. Policymakers need to hear directly about the impacts that these tariffs will have on our collective ability to drive economic growth, spur job creation, and support our small business customers nationwide.”
These developments underscore the complex economic and political landscape facing the North American trade show and events industry as it navigates evolving tariff policies and their broad implications.
Source: Noah Wire Services
