Canada is still at the point of a trade war with the United States. Unfair trade and tariffs on certain Canadian commodities such as aluminum and steel continue threatened the Canadian economy.
However, there is one sector in which Canada emerged as a clear winner: tourism.
US President Donald Trump’s divisive politics, tariffs and increased border security have helped trickle down US tourism spending with US IndeedE, pollsters and industry experts suggest an operation in Canada Patriotism and Canadian ideas as A safe and friendly environment has helped drive record-breaking summer tourism in the country.
“Because they’re putting up more and more barriers, it’s making it more difficult to go to the US so you start looking at alternatives, and Canada is a reasonable alternative,” he said. Wayne Smith, Director of the Institute for Hospitality and Tourism Management at Toronto Metropolitan University.
“This time, Canada has gained a lot.”
The US is losing Canadian dollars to Canada
The Trump administration has proposed it to be a Banner Year for Tourism. America’s foreign trade administration announced in August that for the first six months of 2025, He rose by 2.2 percent.
“President Trump has revitalized our country,” Commerce Secretary Howard Lutnick said in a statement at the time. “With the historic prosperity and President Precile’s government focus on public safety, people from all over the world are coming to visit in record numbers.”
But the deep decline in Canadian tourists to the country, which began when Trump took office in late January and began his trade war, is finally beginning to take a toll.
Overall, between February and October, the number of return trips by Canadians to the US decreased by 21 percent for air travel and 33.5 percent for lAnd travel, according to Statistics Canada data provided to CBC news.
The US Travel Association, a non-profit industry organization, now paints a less stellar picture in 2025: It predicts A decrease of 3.2 percent in the International Tourism Senting in the US compared to 2024 – a loss of $5.7 billion US.
The organization is greatly affected by the decline in the number of Canadian visitors. Canadians traditionally make up the largest group of international visitors to the US, with 28 percent of 72.4 million visitors by 2024.
“We’re limited, our border communities in particular, by the lack of Canadian tourism,” said Laurie Trautman, director of the border policy research organization at Western Washington University in Bellingham, Wash.
He notes that the drop in revenue comes a few years after the tourism crisis during the 19 pandemic.
“A lot of those businesses that got back on their feet are now hitting their feet again,” Trautman said. “So it’s an incredible expense.”
Canadian travel to the United States has dropped significantly since President Donald Trump withdrew from his office earlier this year. Andrew Chang breaks down the numbers to explain the impact on the US economy, and how many American businesses are trying to win Canadians back. Photos provided by The Canadian Press, Reuters and Getty Images
New Angus Reid Poll It suggests that the Trump administration played a major role in the reduction. Of the 1,607 Canadians surveyed in late October, 77 percent said they viewed the travel destination more negatively this year compared to previous years.
The top reasons the answers gave for avoiding the country included the decision to representada (in response to the trade war and Trump calling Canada the 51ST State), and concerns about America’s political situation and border security.
Those concerns have been developed by Strict entry rules for certain Canadian visitorsthe recent arrests of some foreigners At the US border again awesome video Showing us immigration and the culture of forced (ice) detention as part of Trump’s crackdown on immigration.
“Tourism is a very safety-based industry,” Smith said.
“[Canadians] “It is not certain where they cross the border if they have to do their passport because of the snow,” he said. Add some of the political elements to it, and the US looks like a place people will find far away. “
Canada’s Scoom Boom
America’s loss has become Canada’s gain, as many Canadian and international tourists chose to spend their dollars north of the 49th like this year.
The place where you go, The country’s tourism association, measures more than a year of tourism The happy summer season of May of August was increased by an unprecedented $ 3.3 billion (six percent).
Part of that launch came from domestic tourism, which spent seven percent.
“He got a lot of people looking at him [the U.S.] And I thought, ‘I can stay in Canada and make a really good contribution to Canadian society,'” Smith said. You’ve had the perfect kind of storm to get domestic tourism really up, and strong, in Canada this year. “
angus reid revol pulls that down. 1,The Canadian 075 was tested by Angus Reid in early June26 percent said they are changing, postponing or canceling US travel plans this year. Of those respondents, the majority said they would rather travel within their own province (44 per cent), or to another Canadian province (30 per cent).
This page The survey was posted by Monerisa Canadian payment processing company.
This past summer will be one to remember for many hotels and tourist attractions across the country. KBC’s Kyle Bakx breaks down new statistics that show the tourism industry is gaining ground, despite a decline in revenue from American tourists.
Few Americans visited Canada this summerwhich resulted in a 1.7 percent decrease in their tourism dollars, Canadian data shows. But the rise of overseas tourism has helped make it happen.
Annual data provided by Statistics Canada shows overseas visitors to Canada between May and August increased by 2.4 per cent. And the further you go in Canada, their consumption increased by 10.4 percent.
A Online survey Of the 1,560 people in the UK, France and Germany back in May it suggests the Trump administration is influencing their travel patterns.
More than half (52 percent) said they are likely to visit Canada because of the current political situation in the U.S. On top of this, more than 90 percent consider Canada a friendly and safe place to visit.
The survey was conducted by the Content Research Group (CRG), a research partner of Ontario’s travel agency, ONATRIO. Respondents were polled soon after following Several virusesagain Welsh backpack there wasfound at the US border, with Trump Europe is threatened with sweeping tariffs.
“We’re benefiting a lot from that kind of political climate that’s happening in the US right now,” said William Scatten, founder of GRG.
“Canada is currently seen as a top destination [Europeans] Because there is a sense of safety and security, and friendliness. “
Many Canadian snowbirds crossing the border into the US are being told they need to be photographed and fingerprinted as part of the new registration process.
What about 2026?
US Travel Association predicts international travel will rebound in 2026, powered by US Hosting FIFA Work World Cup Games In summer, and 250 national festivals.
The travel association also expressed concern about new legislation introduced by the Trump Administration that could drive tourism.
The US plans to use Fee of $250″ For tourists who need a non-immigrant visa to enter the country.
That means Canadian citizens will be pardoned, but not Canadian permanent residents and Mexican citizens. Mexicans made up the second largest group of 72.4 million visitors to the US in 2024, The amount is 23.5 percent. Canada will also host FIFA World Cup games.
Visitors can collect a refund if their visa expires, but there are scant details about how the process will work.
“Increasing revenue from international tourism is like a self-imposed tax,” said Travel Tourism President and CEO Geoff Freeman. for the July statement.
“These fees … do nothing but discourage tourism at a time when foreign travelers are increasingly concerned about the welcoming experience and high prices.”
