Canada is still in a trade war with the United States. Trade uncertainty and tariffs imposed by the United States on some Canadian products such as aluminum and steel continue to increase. threaten the Canadian economy.
However, there is one sector where Canada is emerging as a clear winner: tourism.
U.S. President Donald Trump's controversies, tariffs and increased border security have contributed to a decline in U.S. international tourism spending.e, polls and industry experts suggest a surge in Canadian patriotism and perceptions of Canada as The safe and friendly location helped the country enjoy a record summer for tourism.
“As they put up more barriers, it becomes more difficult to travel to the US. So you start looking for alternatives and Canada is a reasonable alternative,” he said. Wayne Smith Director of the Institute of Hotel and Tourism Management at the Metropolitan University of Toronto.
“In this case, Canada benefited enormously.”
US loses Canadian tourist dollars
The Trump administration has suggested that 2025 will be a banner year for tourism. In August, the US International Trade Administration announced that in the first six months of 2025, annualized international visitor spending rose 2.2 percent.
“President Trump has revitalized our country,” Commerce Secretary Howard Lutnick said at the time. “Thanks to historic prosperity and President Trump's focus on public safety, people from around the world are coming here in record numbers.”
But the deepening decline in the number of Canadian visitors to the country which began when Trump took office in late January and launched his trade war, which eventually began to bear fruit.
Overall, return trips by Canadians to the United States fell between February and October.y 21 percent for air travel and a staggering 33.5 percent for land travel, according to Statistics Canada data provided to CBC News.
The U.S. Travel Association, a nonprofit industry organization, now paints a not-so-rosy picture for 2025: He predicts reduction in spending on international tourism by 3.2%.ng in the USA compared to 2024 – a loss of $5.7 billion.
The association attributes much of the decline to fewer Canadian tourists. Canadians traditionally make up the largest group of foreign visitors to the United States, making up 28 percent 72.4 million visitors in 2024.
“We, especially our border communities, are being destroyed by the lack of Canadian tourism,” said Laurie Troutman, director of the Border Policy Research Institute at Western Washington University in Bellingham, Washington.
She notes that the decline in spending comes just a few years after the catastrophic decline in tourism during the COVID-19 pandemic.
“A lot of these businesses got back on their feet and now they've been knocked down again,” Troutman said. “So it's an incredible price.”
Travel by Canadians to the United States has fallen sharply since President Donald Trump took office again earlier this year. Andrew Chang runs the numbers to explain the impact on the U.S. economy and how many American businesses are trying to lure Canadians back. Images courtesy of The Canadian Press, Reuters and Getty Images.
new Angus Reid Poll suggests the Trump administration played a central role in the decline. Of 1,607 Canadians surveyed in late October, 77 percent said they viewed the U.S. as a travel destination more negatively this year than in previous years.
Among the main reasons respondents gave for avoiding travel to the country was their determination to defend Kahn.hell (in response to the trade war and Trump naming Canada the 51st state),and concerns about America's political climate and border security.
These concerns were caused stricter entry rules for some Canadian visitors, recent detention of several foreigners at the US border and dramatic video shows US Immigration and Customs Enforcement (ICE) arresting people as part of Trump's immigration crackdown.
“Tourism is very much a safety-based industry,” Smith said.
“[Canadians] “We're not sure when they'll cross the border if they have to carry a passport with them because of ICE,” he said. “Add some political components to that, and the U.S. becomes a destination that people will deviate from.”
Tourism boom in Canada
America's loss was Canada's gain as many Canadian and international visitors decided to spend their money on vacations north of the 49th parallel this year.
Destination Canada, tourism organization of the country, estimates annual total tourism income For the profitable summer season from May to August increased by an unprecedented $3.3 billion (six percent).
Part of this growth was due to domestic tourism, which grew by seven percent.
“A lot of people are looking at you [the U.S.] and thinking, “I can stay in Canada and make a really positive contribution to Canadian society,” Smith said. “You had the perfect storm that caused domestic tourism to really grow and grow strongly in Canada this year.”
The Angus Reid survey confirms this. From 1,075 Canadians surveyed by Angus Reid in early June26 percent said they changed, postponed or canceled travel plans to the United States this year. Of these respondents, the majority said they chose instead to travel either within their own province (44 percent) or to another Canadian province (30 percent).
survey commissioned by MonerisCanadian payment processing company.
This past summer will be one to remember for many hotels and tourist attractions across the country. CBC's Kyle Baxx reports new numbers that show the tourism industry is at record heights despite declining revenue from American visitors.
Fewer Americans visited Canada this summerresulting in a 1.7% decline in their tourism revenue, data from Destination Canada shows. But a rise in overseas tourism has helped offset this.
Compared to last year, data provided by Statistics Canada shows the number of international tourists coming to Canada between May and August was up 2.4 per cent. Their spending increased by 10.4 per cent, according to Destination Canada.
An online survey The 1,560 people in the UK, France and Germany as recently as May suggest the Trump administration has impacted their travel patterns.
Just over half (52 percent) said they are more likely to visit Canada due to the current political climate in the United States. Additionally, more than 90 percent said they view Canada as a friendly and safe place to visit.
The survey was conducted by Context Research Group (CRG), a research partner of Ontario tourism organization Destination Onatrio. Respondents were interviewed shortly after several Germansplus Welsh tourist weredetained at the US border, and Trump threatened Europe with huge tariffs.
“We're indirectly benefiting from the kind of political climate that's going on in the U.S. right now,” said William Schatten, co-founder of CRG.
“Canada is now seen as a popular destination for [Europeans] because there is a sense of safety and security, as well as friendliness.”
Many Canadian snowbirds crossing the land border into the United States have been told they must be photographed and fingerprinted as part of a new registration process.
What about 2026?
The U.S. Travel Association predicts that international travel will rebound in 2026, driven by U.S. hosts. World Cup football matches in the summer and the celebration of the country's 250th anniversary.
The tourism association also expressed concern about a new rule introduced by the Trump administration that could further hamper tourism.
The US plans to implement “Visa Integrity Fee” of US$250. for visitors who require a non-immigrant visa to enter the country.
This means Canadian citizens will be exempt, but not Canadian permanent residents and Mexican citizens. Mexicans made up the second largest group of the 72.4 million U.S. visitors in 2024. only 23.5 percent. Canada also hosts World Cup games.
Visitors You may be able to get a refund once their visa expires, but there are few details about how this process will work.
“Increasing fees for legitimate international visitors amounts to a voluntary tariff,” said U.S. Travel Association President and CEO Jeff Freeman. in the July statement.
“These fees… do nothing but discourage visitation at a time when international travelers are already concerned about good experiences and high prices.”
