Decline in Canadian Travelers Visiting the U.S. Persists in June
In an unexpected turn of events, the current climate of tariffs and border controls has significantly affected Canadian travel to the United States, resulting in a noticeable decline in both travel volume and spending, particularly in air travel.
The U.S. has long been the primary travel destination for Canadians, with Canadian-resident trips to the U.S. totalling 39 million in 2024, accounting for 75% of all Canadian-resident travel abroad. However, recent developments have caused a shift in travel patterns.
Stricter border measures implemented since April 2025 require Canadians staying in the U.S. over 30 days to register with U.S. authorities. Border agents now have broad discretion to search electronic devices, demand passwords, and request detailed personal information, raising concerns about privacy and contributing to travel hesitancy.
The tariff dispute between the two countries, which began in February 2025, has escalated, with the U.S. government announcing plans to impose a 35% tariff on all Canadian products sent into the U.S. as of Aug. 1, 2025. This move has led to reactions such as the booing of the U.S. national anthem at hockey games and Canadians stopping the purchase of U.S.-made products.
A Leger study revealed that 75% of Canadians who were planning a trip to the U.S. were influenced by tariff announcements, and over half (56%) of those planned trips were changed to other destinations. The weakened Canadian dollar (valued at about $0.73 USD) combined with rising travel costs in the U.S. has made air travel and tourism more expensive, further dampening spending by Canadian visitors.
The hospitality and tourism sectors near the U.S.-Canada border are feeling the effects due to reduced Canadian visitors, impacting businesses like tours and retail reliant on Canadian spending. A 10% drop in Canadian tourism to the U.S. is projected to result in $2.1 billion in lost spending and 14,000 job losses, according to the U.S. Travel Association.
Data from Harry Reid International Airport showed a 3.89% decrease in total travellers going through the airport in May. Both Flair and WestJet reported significant drops in passengers to Harry Reid International Airport in May, with Flair experiencing a 64% drop and WestJet a 34.6% drop. Air Canada reported a 21.7% year over year decline in passengers to the same airport in the same month.
In June 2025, there was a 22.1% decrease in the number of Canadians who travelled to the U.S. by air compared to the same month in the previous year. Canadian resident return trips by car dropped 33.1% in June. These declines mark the sixth consecutive month of year-over-year declines in both car and air travel, with double-digit drops since April.
In conclusion, the combination of tariff disputes, stricter border controls, deteriorating U.S.-Canada relations, and unfavourable currency exchange rates has significantly curtailed Canadian travel to the U.S., especially by air, and reduced their spending there. This situation is having a ripple effect on the U.S. economy and its tourism industry.
[1] Stricter border measures contribute to travel hesitancy: https://www.cbc.ca/news/politics/border-security-privacy-concerns-1.5851681 [2] Tariffs and trade tensions impact Canadian travel to the U.S.: https://www.theglobeandmail.com/canada/article-tariffs-and-trade-tensions-impact-canadian-travel-to-the-u-s/ [4] Leger study reveals impact of tariffs on Canadian travel: https://business.financialpost.com/travel/tariffs-blamed-for-half-of-canadians-who-changed-or-canceled-u-s-trips-leger-study-finds
- The stricter border measures and tariffs between Canada and the U.S. have triggered a wave of travel hesitancy, causing Canadians to reconsider their travel plans. (lifestyle, travel, politics, general-news)
- The financial sectors, including the travel industry and airlines, have been affected by the declining volume of Canadian travelers due to the disputes and border control issues between the two countries. (casino news, finance, travel)
- The increased expenses and privacy concerns associated with travel to the U.S. have shifted Canadian tourists' preferences towards other travel destinations, overturning the U.S.'s traditional dominant status in the Canadian travel market. (lifestyle, travel, politics, general-news)
