Published on
October 11, 2025
Canada’s boycott of US travel, driven by political tensions, trade disputes, and economic pressures, has significantly impacted the US tourism industry, with a 24% decline in Canadian visitors during the first half of 2025. This drop, part of a broader international tourism slowdown, has led to a projected $29 billion shortfall in expected tourism revenue. Strained relations, a weakened Canadian dollar, and the overall geopolitical climate have combined to reduce the flow of Canadian travelers to the US, further challenging the tourism sector’s recovery.
Canada’s boycott of US travel, fueled by political tensions, trade disputes, and economic pressures, has led to a 24% decline in Canadian visitors, contributing to a projected $29 billion loss in tourism revenue for the US in 2025.
In recent years, Canada has been the largest single source of international visitors to the United States, contributing approximately one-quarter of all foreign tourists. Canadian travelers have consistently played a vital role in driving the US tourism industry, with their spending supporting a wide range of economic activities. In 2024 alone, Canadian tourists spent an impressive $20.5 billion in the US, underscoring the importance of this market to the US economy. However, in 2025, a significant shift occurred, as the number of Canadian visitors to the US plummeted by 24% in the first six months of the year. This decline is part of a broader downturn in international tourism, which is projected to result in a massive $29 billion shortfall compared to the expectations set at the beginning of the year.
The Decline in Canadian Travel to the US
According to the US National Travel and Tourism Office (NTTO), Canadian tourists have historically accounted for one of the largest groups of foreign visitors to the United States. As of 2024, Canadian visitors made up about one-quarter of all international arrivals to the US and were responsible for an extraordinary $20.5 billion in tourism spending. This robust flow of tourism dollars played a key role in supporting jobs, local businesses, and government revenue generated from taxes on tourism-related activities.
However, 2025 has seen a dramatic decline in Canadian travel to the US. Tourism Economics, a division of Oxford Economics, reported a 24% drop in Canadian travel to the US during the first six months of 2025. The drop was particularly stark by mid-year, with air travel falling by 25.8% and car trips decreasing by 36.9% compared to the same period in 2024.
This dramatic downturn represents a significant blow to the US tourism industry, which has relied heavily on the strong presence of Canadian travelers. As a result, US tourism officials are now projecting a potential economic loss of up to $29 billion, reflecting a substantial shortfall in expected tourism revenue for the year.
Key Data on Canadian Travel to the US (2024 vs. 2025)Metric20242025 (H1)Change (%)Total Canadian Visitors20.5 million15.6 million-24%Total Spending by Canadians$20.5 billion$16.5 billion-24%Air Travel (Arrivals)10 million7.4 million-25.8%Car Trips9.5 million6 million-36.9%Estimated Revenue Loss$29 billion$29 billion (projected)N/A
The data paints a stark picture of the impact on US tourism, highlighting a sharp decline in both the number of Canadian visitors and their total spending. The primary drivers of this decline are multifaceted, with political, economic, and social factors all playing a role.
Factors Contributing to the DeclineTrade Tensions and Political Climate
One of the most significant contributors to the decline in Canadian visitors to the US has been the political rhetoric and trade tensions that arose under the leadership of former US President Donald Trump. Trump’s trade policies, which included imposing tariffs on Canadian goods, coupled with inflammatory rhetoric, have strained relations between the two nations.
Perhaps one of the most notable examples of this tension was Trump’s suggestion that Canada could become the “51st state” of the US. Such remarks led to a sense of alienation and disillusionment among Canadian citizens, many of whom began to boycott US travel as a form of protest. This boycott has been partially responsible for the 24% decline in travel, as more Canadians opted to vacation in other countries or stay within their own borders.
Economic Pressures
The weakened Canadian dollar has further exacerbated the situation. As the value of the Canadian dollar has dipped, it has made US travel more expensive for Canadians, thereby decreasing their ability and willingness to travel south of the border. The high cost of living in Canada, coupled with inflation and rising domestic costs, has led many Canadians to reevaluate discretionary spending, including travel. The economic pressures have made international trips less appealing, with many opting for more affordable destinations.
Political Climate and Immigration Policies
Trump’s aggressive stance on immigration and his administration’s implementation of restrictive travel policies have contributed to a negative perception of the US as a travel destination. The so-called “travel bans” on citizens from certain countries, along with broader anti-immigration rhetoric, have created a climate of uncertainty and distrust. As a result, many foreign nationals, including Canadians, feel less welcome in the US, contributing to a decline in tourism.
Broader Impact on US Tourism
The decline in Canadian visitors is not an isolated incident. It is part of a larger trend that is affecting the US tourism industry on a global scale. The US tourism sector has faced challenges from several key international markets, including India, China, and European countries. According to Tourism Economics, international arrivals to the US are projected to fall by 6.3% in 2025, which will result in an economic shortfall of $29 billion compared to earlier forecasts.
Several factors are contributing to this broader decline in international tourism to the US:
Immigration Policies: The US government’s tough stance on immigration, including the enforcement of stricter visa policies, has deterred travelers from key international markets. Many potential visitors now face longer wait times for visas or additional scrutiny during the application process, leading to frustration and discouragement.Tariffs and Trade Wars: Trade tensions between the US and other countries, particularly China, have resulted in retaliatory tariffs that have increased the cost of travel and goods. This has made the US a less attractive destination for international tourists.Currency Exchange: The strength of the US dollar has made it more expensive for foreign travelers to visit the US, particularly for those from emerging markets. While the dollar’s strength can make the US more affordable for some visitors, it has raised costs for travelers from countries with weaker currencies.Key Contributing Factors to the Decline in US Tourism (2025)FactorImpact on TourismImmigration PoliciesStricter visa requirements and longer processing timesTrade Tariffs and WarsIncreased travel costs and retaliatory measures by other nationsStrength of US DollarHigher costs for foreign travelersNegative Political ClimatePerceived unwelcoming environment for international visitorsOutlook for the US Tourism Industry
Despite the challenges, there is cautious optimism for the future of US tourism. Events like the 2026 FIFA World Cup, which will be hosted jointly by the US, Canada, and Mexico, are expected to bring millions of international visitors to the country. Additionally, the US is preparing for its 250th anniversary in 2026, which will likely spur interest from travelers looking to participate in the celebrations and explore American culture.
However, experts caution that the road to recovery may be long. Restoring global traveler confidence will require a concerted effort from the US government and the tourism industry to address the underlying factors that have contributed to the decline. Key steps will include:
Reforming Immigration Policies: Streamlining the visa process and easing restrictions on foreign travelers could help to improve perceptions of the US as an accessible and welcoming destination.Promoting Positive Diplomacy: A shift toward more positive and constructive political rhetoric could help to rebuild relationships with key international partners, including Canada.Leveraging Events: Major global events like the FIFA World Cup and the country’s 250th anniversary should be used to create momentum and attract international tourists.
Canada’s boycott of US travel, fueled by political tensions and economic challenges, has led to a 24% decline in Canadian visitors, contributing to a projected $29 billion loss in tourism revenue for the US in 2025.
The decline in Canadian tourism to the US highlights the complex interplay of political, economic, and social factors that are currently shaping the global travel landscape. As tensions between the US and Canada, as well as broader geopolitical issues, continue to impact tourism, the US tourism industry faces significant challenges. The projected $29 billion shortfall in revenue is a stark reminder of the importance of international visitors to the US economy. For the US to reclaim its position as a top global destination, addressing the underlying issues of political climate, economic pressures, and international relations will be essential. Only by fostering a welcoming and stable environment for travelers can the US hope to reverse this troubling trend and restore the vibrancy of its tourism industry.
