Travel between Canada and the U.S. has always been a well-worn path, with Canadians historically making up the largest group of international visitors to the United States. But in June 2025, something changed dramatically. According to new data from Statistics Canada, Canadian visits to the U.S. dropped by an eye-popping 33%. This isn’t just a minor dip—it’s a major shift in the travel dynamic between two countries that share a border, a history, and deep economic ties. So, what’s behind this drop?

While there’s no single reason for this decline, a closer look at the political and economic climate offers some clear insights. Over the past few years, trade tensions and a charged political atmosphere in the U.S. have undoubtedly impacted travel decisions. And it seems that Canadians are now reconsidering their frequent trips south of the border.

The Root Causes: Trade Disputes and Political Rhetoric

It’s impossible to talk about this sudden shift in travel patterns without acknowledging the backdrop of trade tensions. The U.S. government, under President Donald Trump, has made headlines time and time again with its tough stance on trade. One of the most significant moves was the threat of imposing a 35% tariff on Canadian goods. For many Canadians, the very idea of paying hefty fees for their goods coming into the U.S. has created an air of uncertainty about visiting the country.

But it’s not just about economics—political rhetoric plays a big role too. The tone set by the U.S. administration has made many Canadians feel less than welcome, with discussions about annexation and border security often making headlines. This political climate has many Canadians rethinking their travel plans.

A More Cautious Approach to U.S. Travel

Historically, Canadians have flocked to the U.S. for a variety of reasons: shopping, sightseeing, business, and family visits. But now, many are questioning if it’s worth the trip. From everyday consumers to high-end shoppers, Canadians are rethinking their cross-border excursions. The threat of tariffs isn’t just an inconvenience—it’s a tangible concern that could affect everything from groceries to luxury items.

It’s not just about economics, though. There’s also an emotional element. Many Canadians feel the chill of political rhetoric that seems to have put a strain on their long-standing relationship with the U.S. It’s one thing to be inconvenienced by higher prices, but it’s another to feel unwanted in a neighboring country. This shift in sentiment, fueled by trade wars and political hostility, is making many Canadians rethink their travel decisions.

What’s Happening in Canada: A Domestic Tourism Boom

While Canadian visits to the U.S. are down, the flip side is a booming domestic tourism market. As Canadians turn away from cross-border trips, they’re discovering the beauty of their own country. From the soaring Rocky Mountains to the cosmopolitan streets of Toronto and Montreal, Canada offers a wealth of destinations that rival those of any other country.

This resurgence in domestic travel has brought new opportunities for Canadian tourism. The outdoor adventure scene, in particular, has been thriving. Canadians are flocking to nature for hiking, skiing, and exploring the vast national parks. The rise of eco-tourism and wellness retreats has given local businesses a much-needed boost. In short, while Canadians are staying closer to home, they’re still eager to travel—just not south.

Alternative Destinations: Canadians Exploring New Horizons

As U.S. tourism falters, Canadians are looking further afield. Many are venturing into new international destinations that offer rich cultural experiences without the political baggage. Countries in Europe, especially the United Kingdom, France, and Spain, are seeing an increase in Canadian tourists. These countries offer the cultural richness, history, and luxury experiences that Canadians are seeking, but without the trade tensions.

Southeast Asia and the Caribbean are also seeing a surge in Canadian visitors. For many, the appeal lies in the idea of exploring something new, where there are fewer concerns about tariffs or political fallout. These destinations offer fresh, exciting experiences, and it’s clear that Canadians are ready to embrace the world beyond the U.S.

The Economic Impact: A Blow to U.S. Tourism

The impact of this shift is already being felt across the U.S. tourism industry. Canadians, who have long been a staple of the American tourism market, represent a significant portion of visitors, particularly in border cities and states. From New York to Florida, the absence of Canadian tourists is already noticeable.

The airline industry is feeling the effects as well. With fewer Canadians flying to the U.S., airlines are looking at reduced demand for trans-border flights. This drop in passenger numbers could lead to cancellations or reduced flight options, impacting both airlines and passengers.

The hospitality industry is also bracing for the financial fallout. Hotels, resorts, and other accommodation providers that relied on Canadian tourists for high season bookings are now facing lower occupancy rates. It’s not just about fewer visitors—it’s also about the longer-term impact on travel habits. If Canadians continue to avoid the U.S. in favor of other destinations, the ripple effect could be long-lasting.

Looking Ahead: What’s Next for Canada-U.S. Travel?

So, what does the future hold for travel between Canada and the U.S.? It’s hard to say. The political landscape could shift in a variety of ways, but for now, the decline in Canadian travel seems to be linked to the ongoing trade and political tensions. Until there’s a resolution—or at least a shift in rhetoric—Canadians may continue to look elsewhere for their vacations and getaways.

For the U.S., this presents a challenge, particularly for destinations that depend heavily on Canadian tourism. But it’s also an opportunity to rethink tourism strategies and broaden outreach to other international markets.

In Canada, domestic tourism will continue to grow as Canadians embrace the wonders of their own country. As for those traveling abroad, new international destinations will gain popularity, opening up new paths for travelers.

A New Era in North American Travel

This sudden change in travel patterns serves as a powerful reminder that politics and economics are intertwined with tourism. The Canada-U.S. border is no longer the open, friendly crossing it once was for Canadians. But just as the travel landscape is shifting, so too are the opportunities. As Canadians explore new destinations and rediscover their own country, the U.S. will need to adapt to this changing dynamic.

While political tensions may continue to shape the future of travel, one thing is clear: tourism is resilient, and people will always find ways to connect, whether across a border or around the globe.

References:
Statistics Canada, U.S. Department of Transportation, Canada Border Services Agency, Global Affairs Canada, Tourism Industry Association of Canada