Canadians Cut US Travel by $3.3B in 2025: What It Means 2026

Canadians spent $3.3 billion less on travel to the US in 2025, a dramatic shift driven by political tensions and tariff policies. This decline marks a significant change in cross-border travel behavior, with Canadians redirecting their vacation budgets to other international destinations.

Why Canadians Are Avoiding US Travel

The drop in Canadian travel to the US is directly linked to the return of Donald Trump to office and his America First policies, including tariffs and annexation comments. According to Statistics Canada, travel sentiment shifted abruptly after early 2025, leading to a sustained reduction in border crossings.

This isn't just a temporary dip—it's a structural change. The report notes that declines of this magnitude have only been seen once before, after the 9/11 attacks, making this the deepest and most sustained drop on record since 1972.

Impact on US Tourism Revenue

Total US travel spending by Canadians fell to $18.8 billion in 2025, down from $22.1 billion in 2024. This $3.3 billion loss is a major hit to the US tourism industry, affecting hotels, restaurants, and attractions near the border and beyond.

In contrast, Canadian spending on travel abroad (excluding the US) grew by $3.6 billion, reaching $22.8 billion. This shows that Canadians are not staying home—they're simply choosing other destinations.

Where Are Canadians Traveling Instead?

Canadian travelers are flocking to Europe and Asia. Visits to Europe increased by nearly 14%, while visits to Asia surged by almost 17% compared to 2024. These numbers highlight a clear preference shift away from the US.

The data also shows a sharp decline in return trips by vehicle and plane, with border crossings falling by about 25% overall. The peak decline occurred in July 2025, when crossings dropped by one-third year-over-year.

Comparison: US vs. Other Destinations

Key Takeaways for Travel Industry

• Persistent shift: The decline in Canadian leisure travel to the US is continuing into 2026, with no signs of recovery.
• Alternative destinations: Europe and Asia are the primary beneficiaries of this shift.
• Economic impact: The US is losing billions in tourism revenue from its northern neighbor.
• Political factors: Tariffs and annexation rhetoric are major drivers of this trend.

What This Means for 2026

Statistics Canada reports that return trips to Canada from the US in early 2026 are at similar low levels seen at the end of 2025, which saw a 27% decline between October and December. This suggests that the shift is not temporary but a lasting change in travel patterns.

For US tourism boards and businesses, this is a wake-up call. Rebuilding trust with Canadian travelers will require addressing political tensions and offering compelling reasons to return.

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