Canadians Cut U.S. Travel by $3.3 Billion as Trump Policies Backfire

Canadians spent $3.3 billion less on U.S. travel in 2025 compared to the previous year, new government data shows. The total dropped from $22.1 billion to $18.8 billion, a direct hit to American hotels, airlines, and tourism businesses. The cause? Donald Trump’s return to the White House brought tariff threats and repeated talk of annexing Canada—comments that quickly soured travel sentiment north of the border.

But Canadians didn’t stop traveling; they just changed direction. Spending on international trips outside the U.S. jumped $3.6 billion in 2025, reaching $22.8 billion. Visits to Europe rose nearly 14%, while trips to Asia climbed almost 17%. According to Statistics Canada, “Following the change in the U.S. administration and the implementation of America First policies, Canadian travel sentiment shifted abruptly.”

The plunge in U.S. visits was historic. Return trips by car and plane from the U.S. to Canada fell roughly 25% for the year, with July seeing a one-third decline. The agency called it “the deepest and most sustained on record” since digital tracking began in 1972—only the aftermath of 9/11 produced a comparable drop. Early 2026 data shows the trend continues, with leisure travel to the U.S. stuck at the same low levels seen in late 2025, when the decline hit 27%.

The numbers point to a long-term shift in Canadian travel habits, analysts say. For the U.S. travel industry, losing a once-reliable neighbor’s business could become a lasting problem.