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Canadians cut US travel by a quarter last year, not rushing back

Created at 26 Aug · 1:36 PM1 source↑ Market-relevant
IN SHORT

Canadian residents took 10.6% fewer trips to the US in early 2026 compared to the previous year, extending a 25.4% decline in 2025. Renewed trade tensions and tariffs are cited as reasons for this persistent shift in travel sentiment.

Key Numbers

10.6%Canadian trips to US in Q1 2026 vs prior year
25.4%Canadian residents' return trips from US in 2025 vs 2024
11consecutive months of year-over-year falls in Canadian US travel
50%US tariffs on Canadian cars, trucks, auto parts, and steel from Jan 1, 2027
$20 billionCanadian imports facing new US tariffs
700US products targeted by Canadian retaliatory tariffs
7.4%New US leisure bookings from Canada Jan-Aug 2026 vs prior year
39%July 2026 bookings below July 2024 levels
5 millionincrease in domestic travel visits for Canadians in 2025
1.3 millionincrease in overseas trips for Canadians in 2025
$3.3 billionfall in Canadian spending on US trips in 2025
$18.8 billionCanadian spending on US trips in 2025
$2.2 billionfall in Canadian leisure travel spending in US in 2025
$12.1 billionCanadian leisure travel spending in US in 2025

Who's Involved

Statistics Canada
released National Travel Survey data
Donald Trump
imposed broad tariffs on Canada and Mexico
Rachel J.C. Fu
chair and professor at University of Florida's Department of Tourism, Hospitality and Event Management
Amra Durakovic
head of communications at Flight Center Travel Group Canada
Canadians cut US travel by a quarter last year, not rushing back

↳ Why This Matters

The sustained decline in Canadian travel to the US, driven by trade tensions and shifting consumer habits, represents a significant loss of tourism revenue for the United States, particularly impacting border communities and popular vacation destinations.

Key facts

  • Canadian residents' trips to the US fell 10.6% in the first three months of 2026.
  • Overall Canadian trips to the US declined 25.4% in 2025 compared to 2024.
  • This decline represents the deepest and most sustained non-pandemic drop on record, with 11 consecutive months of year-over-year decreases.
  • Renewed trade tensions and escalating tariffs between the US and Canada are contributing to the sustained pullback.
  • Canadian spending on US trips decreased by $3.3 billion in 2025, with leisure travel experiencing the largest drop.

Canadians have significantly reduced their travel to the United States, with a 25.4% decrease in trips in 2025 compared to the previous year, marking the longest sustained non-pandemic decline on record. This trend has continued into early 2026, with a further 10.6% drop in trips to the US during the first quarter.

Statistics Canada's National Travel Survey indicates that border crossings remain at late-2025 levels, suggesting a "persistent shift" away from US destinations. This pullback began after President Donald Trump imposed tariffs on Canada and Mexico in early 2025, sparking calls for boycotts. The trade dispute has since intensified, with new US tariffs on Canadian imports and Canada's planned retaliatory measures.

Experts like Rachel J.C. Fu from the University of Florida suggest that the current numbers point to a broader change in Canadian travel sentiment and habits, rather than a temporary reaction to political events. Flight Center Travel Group Canada data shows that while US leisure bookings have improved from their 2025 lows, they remain below pre-pullback levels.

The shift in travel patterns could have significant economic consequences for US tourism businesses, particularly in border communities and popular vacation spots. Canadian spending on US trips fell by $3.3 billion in 2025, with leisure travel accounting for the majority of this decline. As Canadians explore alternative destinations, US tourism operators face the challenge of competing for their return.

Frequently asked questions

Canadian residents significantly cut their travel to the US, with a 25.4% decrease in 2025 and a further 10.6% drop in the first quarter of 2026.

The decline is attributed to renewed trade tensions and escalating tariffs between the US and Canada, which have prompted calls for boycotts and a broader shift in Canadian travel sentiment.

The reduction in Canadian visitors has led to a significant decrease in tourism spending, impacting hotels, restaurants, retailers, and other businesses, especially in border communities and popular tourist destinations.

Yes, domestic travel and trips to overseas destinations, particularly Europe and Asia, saw increases in 2025.

What Happens Next

01Canada's retaliatory tariffs on US products are set to take effect from September 8.
02US tariffs on Canadian cars, trucks, auto parts, and steel are scheduled to increase on January 1, 2027.

How It Developed

Canadian residents took 5.5 million trips including a US visit in Q1 2026, down 10.6% year-over-year.
Canadian residents' return trips from the US fell 25.4% in 2025 compared to 2024.
The decline marked 11 straight months of year-over-year falls, indicating a persistent shift away from the US.
US-Canada trade talks broke down, leading to new 50% US tariffs on Canadian imports.
Canada announced retaliatory tariffs on 700 US products.
US tariffs on Canadian cars, trucks, auto parts, and steel are set to rise to 50% from January 1, 2027.
Experts suggest the shift reflects a broader change in Canadian travel sentiment and habits, not just a temporary reaction.
US leisure bookings from Canada are improving but remain below pre-pullback levels.

Sources

T1
Canadians cut their US travel by a quarter last year. They're not rushing back.Business Insider

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