Published on
September 6, 2025
By: Tuhin Sarkar
Canada and Mexico dominate skies as US tourism crumbles under Trump trade war, and the new update on this reveals a dramatic shift in global travel. Air routes between Canada and Mexico are expanding faster than ever, while US tourism suffers a deep fall. Travellers are voting with their passports. They are choosing Mexico’s beaches and cities instead of facing higher costs and new hurdles in the United States.
Canada and Mexico dominate skies as airlines add more seats, more destinations, and more direct flights. Canadian airlines are moving quickly to increase flights to Cancún, Puerto Vallarta, Los Cabos, and Guadalajara. Mexico is ready to welcome more visitors with new airports and expanded terminals. This shows how Canada and Mexico dominate skies as 2025 becomes a turning point in tourism.
At the same time, US tourism crumbles under trade chaos. The introduction of new visa fees, rising political tensions, and ongoing boycotts are driving visitors away. Billions of dollars in lost spending now weigh heavily on the American tourism industry. Many international travellers, especially Canadians, are choosing to fly elsewhere.
Canada and Mexico dominate skies not just in numbers but also in spirit. The two countries are reshaping travel flows while the US tourism crumbles under trade chaos. This new update confirms that power in global tourism is shifting south. The skies tell the story.
Travel in 2025 is not the same as before. Two big changes are shaping the skies. The first is the rise of Canada–Mexico air travel. More Canadians are flying south than ever before. The second is the drop in tourism to the United States. Trade tensions, new visa fees, and shifting public feelings are pushing people away. These two forces are connected. Together they show how politics and business can change the way people travel. This article explains what is happening, why it matters, and what it means for the future.
Canada and Mexico Become Closer in the Skies
In the first half of 2025, flights between Canada and Mexico hit record levels. Nearly two million Canadians flew into Mexico. That is a clear rise of over 5% compared to 2024. Mexico welcomed 23.4 million international air travellers in that period. More than one in ten came from Canada. This means Canada is now one of Mexico’s most important travel partners.
This is not just about numbers. Airlines from both countries see the demand and are adding more flights. Canadian airlines such as Air Canada, Air Transat, and WestJet are putting more planes on routes to Mexico. They are flying to Cancún, Puerto Vallarta, Los Cabos, and new cities such as Guadalajara and Tepic. Mexican airlines like Aeroméxico are also joining forces with WestJet to give Canadians more choices. The air bridge between the two countries has never been stronger.
Why Canadians Choose Mexico Over the US
A big reason behind this growth is the shift away from the United States. Many Canadians no longer feel comfortable travelling there. Some do not like new rules, extra costs, and political tensions. Others are joining an open boycott of US travel.
The numbers prove this point. Canadian trips to the US have dropped sharply. Car crossings are down by more than 30% in some months. Air trips to the US are also down by more than 20%. At the same time, trips to Mexico have surged by double digits. Surveys show that many Canadians now choose Mexico or Europe over the US when booking holidays.
For Canadian families, Mexico feels like a better deal. Warm weather, beaches, affordable packages, and welcoming culture make it attractive. Airlines have matched this demand by making flights easier and cheaper. The result is a travel boom.
Mexico Builds for Growth
Mexico is not only enjoying this boom. It is preparing for even more. Cancún International Airport is expanding. New work is underway to restart its first terminal and upgrade others. By 2026, the airport will handle millions more passengers each year.
Tulum International Airport opened at the end of 2023. By 2024, it already served over one million travellers. Now, it is ready for more. These airports make it easier for Canadians and others to reach Mexico’s sunny destinations. The government and local tourism boards are also promoting culture, heritage, and events to attract travellers beyond the beaches.
In April 2025, Mexico saw 7.66 million foreign visitors. That was 13% more than the year before. In May, 7.93 million foreign travellers arrived. That was 18% more than in May 2024. These sharp rises show that Mexico is not just recovering but growing strongly.
US Tourism Declines in 2025
While Mexico grows, the US is facing the opposite problem. International arrivals to the United States are falling. By mid-2025, forecasts show an 8.2% decline for the year. That means billions of dollars in lost spending. Experts estimate more than 12 billion US dollars will vanish from the economy because fewer foreign tourists are coming.
One reason is the new $250 visa integrity fee, which will start in October 2025. This extra cost pushes total visa charges for many travellers above $400. For families, this is a heavy burden. It makes a US holiday less affordable. Many visitors feel unwelcome when they see such charges.
Trade tensions also play a role. Tariffs and disputes make people think twice about visiting. Political speeches and policies affect how safe or welcome travellers feel. The weaker US dollar adds uncertainty too. For some travellers, cheaper exchange rates help, but for others, the overall image of the US as a destination is slipping.
Canada’s Boycott of US Travel
The most striking trend is the Canadian boycott of US travel. Across social media, Canadian groups have urged people not to spend money in the US. They argue that trade disputes and political actions hurt Canadian interests. So why reward the US with tourism dollars?
This boycott is not just talk. The numbers back it up. Car trips across the border are down by a third. Air trips have also dropped sharply. The boycott effect explains why Canadian bookings to Mexico, Europe, and the Caribbean have jumped. Airlines have noticed this and shifted capacity away from US routes.
This boycott highlights how politics and tourism can link directly. One country’s trade stance can reshape where millions of travellers go on holiday.
Winners and Losers in 2025
The winners in this story are Mexico, Canada’s domestic tourism, and destinations like Europe and the Caribbean. Mexico gains millions of extra visitors and new airline routes. Canada’s own tourism spending stays strong as some Canadians choose to stay home. Europe and island nations also see more Canadian and global tourists.
The main loser is the United States. The fall in visitors means fewer jobs in tourism, weaker income for airlines, and smaller tax revenues for cities. Analysts note that the US is now one of the only major economies where visitor spending is falling in 2025.
How Airlines React
Airlines always follow demand. In 2025, they are acting fast. Air Canada is boosting flights to Latin America by more than 15% for winter 2025/26. It is adding new routes and new destinations. WestJet is increasing its flights to Mexico to 15 direct routes from Calgary alone. It has also signed a stronger deal with Aeroméxico. This codeshare lets Canadians connect to more Mexican cities with ease.
Even low-cost carriers are moving in. Flair Airlines and Swoop have added more flights to Mexican resorts. Air Transat continues to lead in leisure routes. Mexican carriers like Aeroméxico are filling gaps with new links back to Canadian hubs.
The competition means more seats, more routes, and often better prices for travellers.
The Economic Impact
For Mexico, the rise in Canadian visitors means more money spent in hotels, restaurants, tours, and shops. Every plane full of Canadian tourists brings a wave of economic benefit. For Canada, the growth of tourism spending at home helps balance the drop in US trips.
For the US, the decline is painful. Billions of dollars in lost tourist spending mean weaker growth. Trade disputes may win political points, but they carry a cost in jobs and incomes across the tourism industry. Hotels, airlines, airports, and small businesses all feel the squeeze.
