Canadian travel to U.S. remains depressed as trade tensions test tourism recovery
Canadian travel spending and border crossings remain below prior levels, leaving U.S. destinations to rely on discounts and targeted outreach.
Canadian residents made 25% fewer return border crossings from the United States in 2025 than in 2024, while their spending on U.S. travel fell by about US$2.4 billion, or C$3.3 billion, according to Statistics Canada data cited by AP. The decline has reduced a traditionally important visitor market for U.S. destinations, particularly those dependent on Canadian overnight and seasonal travelers. [1]
The pullback followed a broader deterioration in bilateral relations and coincided with a consumer-led reluctance among some Canadians to spend money in the United States. AP reported that the weaker Canadian dollar, higher airfares and hotel costs also made U.S. trips less attractive. Statistics Canada said air travel to the United States had begun declining in September 2023, but characterized the sharper reduction during the current period as a persistent change in Canadian travel preferences. [1]
There were limited signs of improvement during May through July 2026, when cross-border traffic rose modestly. The increase was driven chiefly by car trips, and June and July overlapped with the World Cup hosted by Canada, Mexico and the United States. However, U.S.-bound Canadian air travel remained below year-earlier levels in every month through June, while the U.S. National Travel and Tourism Office estimated that overnight Canadian visits in the first half of 2026 were lower than a year earlier. [1]
U.S. tourism organizations are attempting to offset the weakness through Canada-focused marketing and price incentives. New York State launched its “NY Loves Canada” campaign with offers from hotels, restaurants and attractions. Some downtown Las Vegas hotels have treated the Canadian dollar at par with the U.S. dollar, while Las Vegas tourism officials visited Canada to meet travel advisers, operators and airlines. Brand USA is also scheduled to bring its Travel Week trade-event series to Canada for the first time in October. [1]
The next test will be the winter travel season, when Canadian snowbirds typically support destinations in Florida, Arizona and California. Florida reported a 7% decline in Canadian visitors in 2025, and Visit California estimated a 20% reduction in Canadian visitation. AP reported that the latest tariff escalation may reinforce travelers’ reluctance, indicating that promotional efforts alone may have limited ability to restore demand while political and trade tensions remain elevated. [1]
The reported 25% decline in Canadian return crossings and C$3.3 billion reduction in U.S. travel spending show a material tourism-services shock for U.S. border, leisure and snowbird destinations. The rating is moderate rather than higher because the source identifies a modest summer traffic improvement and active industry discounting and marketing, although overnight and air travel remain weak. [1]