As summer travel picks up, Canadians are taking fewer car trips to the U.S. than in previous years. The latest data from Statistics Canada reveals a 33% decline in the number of car trips made by Canadians to the U.S. in June, marking the steepest drop in recent memory. This is part of an ongoing trend that has seen the total number of Canadian car trips to the U.S. fall significantly over the past year.

In the first six months of 2025, just 8 million visits were undertaken by Canadians to the United States, down from 11 million during the same period in the previous year. This is quite a marked dip and reflects the preference for different routes based on various intricate factors, including political stress between the nations and financial pressures on the travelers from Canada.

Political and Economic Factors Contributing to the Decline

For some Canadians, the choice to reduce visiting the United States has been more than about money. Many travelers have mentioned being irritated by the United States’ policy stance and general politics, primarily around the position of former U.S. President Donald Trump on trade and nationalism. The issues have served as an umbrella for general resistance to visiting the United States as a means of protesting the situation at hand.

The June drop in auto trips also corresponds to the latest string of other trends in the economy. The United States’ currency has declined in value in terms of the Canadian currency, so traveling in the United States has been more costly for the average Canadian. Concurrently, many in the Great White North have shifted spending to in-country tourism and overseas locales, potentially possessing more desirable conditions.

Changing Travel Trends: Increased International Travel, Decreased U.S. Travel

Toronto-Dominion Bank economist Anusha Arif discussed the wider implications of these tourism trends. She pointed out that the tourism industry in Canada is going through a transformation. “As tensions in the U.S. persist, additional tourists will increasingly look at Canada as an alternative destination,” Arif said. Indeed, Statistics Canada figures show the return trips by air from other nations to Canada rose 7.3% in June, further underlining the trend.

As the Canadians reduce visits to the United States, the reverse trend is being observed in the case of international travel. Along with the increase in flying from nations outside the United States, even the total number of foreign tourists in Canada has been indicating a growth trend. It might be encouraging news for the economy of Canada, as tourism earnings play a dominant role in its revenue. Arif estimated the total expenditure in tourism for Canada to increase by as much as 4% during the upcoming year, despite the marked decline in spending by U.S. tourists.

Effect of Softer U.S. Currency and Trade Frictions. Interestingly, U.S. trips to Canada have also dropped. In June, U.S. residents made 10.4% fewer trips to Canada by car compared to the previous year. This decline is linked to both the ongoing trade tensions between the two nations and a weaker U.S. dollar, which has reduced the purchasing power of American visitors to Canada.

In those obstacles, the tourism sector in Canada is changing. Fewer American tourists go north, yet increasingly more Canadians opt for local vacations. Support for the trend is the sophistication of the tourism infrastructure in Canada, continuously more diversified in its offerings for home-based and foreign travelers. And with flights by Canadians overseas over 7% larger than before, the tourism sector is witnessing the slow drift toward more global end points for more broadly based categories of travelers.

Domestic Tourism: A Growing Trend

For those who have not yet looked at traveling at home, the options are endless. From the picturesque B.C. coast to the historic core of Quebec, one would never lack for somewhere to go right at home. Should Canadians reboot their plans for traveling, the temptation of domestic discovery might yet turn out to be one benign side effect amid a tangled global geopolitics.

Looking Ahead: A Bright Future for Canada’s Tourism Industry

Despite a slower start to summer travel for Canadians heading south, the broader picture for Canada’s tourism industry looks optimistic. With more international visitors and an increase in domestic travel, the Canadian tourism economy appears poised to weather the storm of declining U.S. travel. In the end, while political and economic tensions between the U.S. and Canada may have led to an abrupt decrease in car trips southward, this shift presents an opportunity for both Canadians and international travelers to discover the many remarkable destinations Canada has to offer. The year 2025 might just be one where Canadians embrace the beauty of their own country in a way that was not fully anticipated. The trend of exploring new and familiar places at home could be a lasting change, marking a shift in the travel landscape for years to come.

(Source: Statistics Canada, Toronto-Dominion Bank)