Canadian Travel to the United States Plummets in 2025

Statistics Canada reports that Canadians spent $18.8 billion on U.S. trips in 2025, a $3.3 billion decline from the previous year. Leisure travel accounted for the largest loss, falling by $2.2 billion, while family-related trips also contracted, though at a slower pace. The overall reduction represents the steepest year-over-year decline since the post-9/11 period, with border crossings at their lowest level since digital records began in 1972 (excluding the pandemic years).

The Hill

The report notes that crossing volumes bottomed out in July, when daily movements were roughly one-third lower than a year earlier. By late 2025, crossings had stabilized at about one-quarter below 2024 levels. Returns from the United States dropped dramatically, with a more than 70 percent decrease between December 2024 and December 2025.

The Hill

Months into his second term, President Donald Trump invoked the International Emergency Economic Powers Act to impose a 25 percent tariff on Canadian goods, citing border-security and fentanyl concerns. The tariff regime also included a 10 percent tax on energy and potash, plus duties on timber, lumber, and certain vehicle parts. Most of these measures were overturned by a February Supreme Court ruling that found the president had exceeded his authority. Nonetheless, the tariff episode, along with earlier threats of additional duties over Michigan wildfire smoke and rhetoric about Canada becoming a “51st state,” contributed to heightened tension and a travel pullback.

The Hill

The contraction in cross-border tourism has reverberated through both economies. U.S. retailers and service providers that rely on Canadian visitors faced reduced sales, while Canadian consumers lost a significant outlet for leisure spending, prompting a modest shift toward domestic or alternative international destinations, as indicated by a $3.6 billion rise in non-U.S. leisure travel for Canadians.

The Hill

Canadian officials, citing the travel downturn, have launched a government-backed advertising campaign aimed at restoring goodwill and encouraging Canadians to resume U.S. visits. Early indications suggest a modest rebound, but crossing volumes remain well below pre-2024 levels, leaving the longer-term trajectory uncertain.

The Hill