Thursday, June 12, 2025
Canadian Travel to the US Plummets as Global Destinations Rise and Trump-Era Policies Resurface in New Economic Shifts
The United States is facing a significant decline in tourism from one of its most reliable markets—Canada. As more Canadians turn their attention to overseas destinations, US border towns and major cities are beginning to feel the strain.
According to new data, travel from Canada to the US experienced a steep drop in May. The number of Canadians returning home by car from the US fell by 38.1% compared to the same month last year, while those flying back saw a decrease of 24.2%. Meanwhile, Canadian returns from countries outside the United States increased by 9.8%, indicating a clear pivot toward international alternatives.
This shift in travel behavior can be traced back to earlier this year, coinciding with the resurgence of trade and immigration rhetoric reminiscent of former US President Donald Trump’s administration. Under Trump, aggressive tariffs on global partners—including Canada—and strict immigration policies contributed to an atmosphere of economic tension and diplomatic strain. Analysts believe the reemergence of similar sentiments in current policymaking circles has reignited hesitations among international travelers, particularly Canadians.
While border traffic may be the most visible impact, the economic consequences run much deeper. The U.S. Travel Association projects that a 10% decline in inbound travel could cost the country approximately $2.1 billion in lost tourism revenue and put nearly 140,000 tourism-related jobs at risk. These projections align closely with the observed downturn in Canadian visits.
Canadians have long been a cornerstone of US tourism, representing a substantial share of international visitor spending. In 2024 alone, travelers from Canada spent roughly $20.5 billion in the US across various sectors—from hotels and restaurants to entertainment and retail.
Despite mounting concerns, efforts to re-engage Canadian tourists have fallen short. Local governments near key border crossings have launched targeted campaigns promoting regional attractions and cross-border cultural ties. One such border crossing, which normally records around 100,000 Canadian vehicle entries monthly, reported a traffic drop of nearly 50%. Yet these localized efforts have done little to reverse the trend.
On a broader scale, several US states have also rolled out outreach campaigns emphasizing their weather, hospitality, and attractions in an effort to win back Canadian tourists. Promotional videos and digital advertising aimed at Canadian audiences have attempted to rebuild interest. However, the results have remained underwhelming.
In addition, northeastern tourism offices have pivoted toward marketing sustainability and nature-based travel experiences—an appeal meant to attract eco-conscious Canadians. Still, the momentum continues to shift in favor of other international destinations, with countries in Europe, Asia, and the Caribbean emerging as top choices.
Experts point to a combination of factors fueling this change: economic uncertainty, political friction, and evolving traveler preferences. They argue that Trump-era policies may have sown long-term doubts about how welcome foreign tourists feel in the US. While the current administration has not officially reinstated those measures, the lingering effects—and the occasional revival of similar rhetoric—continue to influence travel decisions.
Meanwhile, the tourism gap left by declining Canadian interest is being filled by competing markets that offer visa ease, stronger currency value, and more welcoming perceptions. These countries are actively capturing Canadian travel spend that once flowed steadily into the US economy.
On the flip side, Canada also reported a dip in US visitors during May, with car travel down 8% and air arrivals dropping 0.3%, according to Statistics Canada. This two-way slowdown underscores the mutual economic impact of shifting travel dynamics across North America.
As the situation unfolds, tourism experts stress the need for proactive policy adjustments, improved bilateral travel initiatives, and a renewed emphasis on cross-border collaboration. Without intervention, the United States risks losing more than just tourist dollars—it could see a permanent erosion of one of its strongest travel relationships.
