Canadians Cut US Travel Spending by $3.3B in 2025 2026

Canadians spent $3.3 billion less on travel to the US in 2025 compared to the previous year, according to new data from Statistics Canada. This significant drop reflects a sharp shift in Canadian travel sentiment following Donald Trump's return to office and his 'America First' policies, including tariffs and annexation remarks. The data reveals that Canadians are not staying home—they are redirecting their travel budgets to other international destinations, marking a clear rebuke to US policies.

Key Findings from Statistics Canada

The report highlights that total US travel spending by Canadians fell to $18.8 billion in 2025, down from $22.1 billion in 2024. Meanwhile, Canadian spending on travel abroad (excluding the US) grew by $3.6 billion to reach $22.8 billion. This shift was particularly pronounced in visits to Europe (up nearly 14%) and Asia (up almost 17%).

Return trips to Canada from the US by vehicle and plane dropped by about 25% overall in 2025, with the steepest declines in July 2025 when border crossings fell by one-third. These declines are described as the deepest and most sustained on record since digital record-keeping began in 1972, rivaling only the post-9/11 period.

Comparison Table: Canadian Travel Spending (2024 vs. 2025)

Why Canadians Are Choosing Other Destinations

The primary drivers include political tensions, tariff disputes, and the repeated comments about annexing Canada. These factors have created a hostile environment that discouraged leisure travel. According to the report authors, 'Following the change in the US administration in early 2025 and the implementation of America First policies, Canadian travel sentiment shifted abruptly.'

Even in 2026, the trend persists, with return trips at similar levels to the end of 2025, which saw a 27% decline between October and December. This indicates a persistent shift away from the US among Canadian travelers.

Key Takeaways

• Canadians spent $3.3B less on US travel in 2025, a 15% decrease.
• Spending on other international destinations rose by $3.6B.
• Europe and Asia saw double-digit growth in Canadian visits.
• Border crossings fell by 25% overall, with the steepest drop in July 2025.
• The decline is the most sustained since 9/11, signaling a long-term change.

Impact on US Tourism and Economy

This reduction in Canadian travel spending has significant economic implications for US tourism-dependent regions. Border states like New York, Michigan, and Washington may see reduced revenue from Canadian visitors. The data also suggests that political decisions can directly influence consumer behavior, as seen in the rapid shift in travel patterns.

For Canadian travelers, this shift offers an opportunity to explore new destinations without the political friction. Many are opting for warmer climates in Mexico and the Caribbean, or cultural hubs in Europe and Asia.

FAQ

In summary, the data from Statistics Canada provides a clear picture of how political tensions can reshape travel patterns. For US tourism boards, this serves as a cautionary tale about the economic consequences of policy decisions. For travelers, it opens up a world of alternatives.