Canadian Travel to the U.S.: How Tariffs and Politics Are Reshaping Tourism Trends

Canada has long been the top source of international visitors to the United States, with over 20.4 million trips taken in 2024 alone. These visits generated $20.5 billion in spending and supported 140,000 American jobs. However, recent political and economic developments, including new U.S. tariffs on Canadian imports and shifting diplomatic relations, are prompting many Canadians to rethink their travel plans. With a potential 10% decline in Canadian tourism to the U.S., the impact could be significant for both economies.

Declining Canadian Travel to the U.S.: What’s Behind the Shift?

The political climate between Canada and the United States has become increasingly tense, with U.S. President Donald Trump implementing tariffs on Canadian steel and aluminum imports and even making remarks about Canada potentially becoming the "51st state." These statements, coupled with rising Canadian patriotism, are leading many to cancel or reconsider their U.S. travel plans.

Prime Minister Justin Trudeau has encouraged Canadians to spend their tourism dollars domestically, stating, “Now is the time to choose Canada... It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites, and tourist destinations our great country has to offer.”

Travel agents across Canada have reported an uptick in cancellations of U.S. trips, with many opting for alternative destinations like Mexico, Portugal, and Canada’s East Coast. The political climate is not the only factor—economic concerns, such as the weak Canadian dollar, are also playing a role in this shift.

The Economic Impact of Reduced Canadian Tourism in the U.S.

A decline in Canadian visitors to the U.S. could have widespread economic repercussions. According to the U.S. Travel Association, a 10% reduction in Canadian travel would mean:

• 2 million fewer visits to the U.S.

• $2.1 billion in lost tourism revenue

• 14,000 American job losses, particularly in the retail and hospitality sectors

The five states most popular among Canadian tourists—Florida, California, Nevada, New York, and Texas—stand to be hit hardest. Shopping is a primary leisure activity for Canadian visitors, and a decrease in cross-border shopping could impact local economies. Sun Belt destinations such as Palm Springs and Phoenix, which rely heavily on Canadian snowbirds, may experience significant declines in seasonal tourism revenue.

Canadian Travelers Are Voting with Their Wallets

Many Canadians have taken a firm stance against U.S. policies by actively choosing to spend their travel dollars elsewhere.

Kathy Rowe from Torbay, Newfoundland, and her husband have traditionally traveled to the U.S. every year. However, following Trump’s reelection and increasing anti-Canada rhetoric, they canceled their Dallas trip, opting instead for a road trip within Canada. “We took the hit because morally I just could not go down there and give them one more penny of my money,” Rowe stated.

Similarly, Linda Randell from Alliston, Ontario, decided to forgo her annual trip to Florida due to concerns about Trump’s unpredictability and potential border restrictions. “You never know what he’s going to do,” she said, adding that she felt a sense of relief after canceling her travel plans.

Travel agencies have noted a significant trend of clients avoiding the U.S. McKenzie McMillan, a travel consultant in Vancouver, said, “This has been a much more tangible reaction from clients who are actually outright canceling trips and rearranging their plans. This is something that we haven't seen before to this extent.”

Alternative Travel Destinations for Canadians

With many Canadians choosing to avoid the U.S., other destinations are seeing increased interest.

1. Exploring Canada

Patriotic sentiment has driven many Canadians to explore their own backyard. Popular domestic travel destinations include:

• The Maritimes, including Prince Edward Island, Nova Scotia, and New Brunswick, offering scenic coastal views and rich cultural experiences.

• Banff and Jasper National Parks in Alberta, providing stunning landscapes and outdoor adventure.

• Niagara Falls, a year-round attraction with vibrant entertainment options.

• Quebec City and Montreal, known for their European charm, history, and culinary delights.

2. Mexico

As an alternative to warm U.S. destinations, Mexico is gaining popularity among Canadian travelers. All-inclusive resorts in Cancun, Playa del Carmen, and Puerto Vallarta offer affordable, high-quality experiences that rival Florida’s appeal.

3. Europe

Portugal, Spain, and France are seeing increased Canadian visitors as they offer rich cultural experiences, world-class cuisine, and competitive travel pricing. Many travelers are taking advantage of direct flights from Canada to major European cities.

4. The Caribbean

Destinations such as Antigua, the Dominican Republic, and Barbados are benefiting from Canadian tourists looking for sun and relaxation without the political tension of traveling to the U.S.

What Does the Future Hold for Canadian Tourism in the U.S.?

While the current political climate is influencing travel decisions, the long-term impact on Canadian tourism in the U.S. remains uncertain. Some industry experts believe that if diplomatic relations improve and tariffs are lifted, travel patterns may return to normal. However, others argue that Canadians may continue seeking alternative destinations even after the political landscape changes.

Tourism plays a crucial role in fostering relationships between nations. As Beth Potter of the Travel Industry Association of Canada emphasized, “Tourism is a form of soft diplomacy, and it really leads to cultural understandings and bridging relationships between countries.” However, for many Canadians, economic and political concerns outweigh the benefits of cross-border travel.

Final Thoughts

The decline in Canadian tourism to the U.S. is a clear response to economic policies, political rhetoric, and shifting traveler preferences. While this trend presents challenges for the U.S. tourism industry, it also highlights the resilience and adaptability of Canadian travelers. Whether this shift is temporary or marks a lasting change in travel habits remains to be seen.

For now, one thing is clear: Canadians are reevaluating where they spend their tourism dollars, and the impact of their choices is being felt on both sides of the border.