Canadians Cut Back on U.S. Travel, Boost Domestic and International Trips
Sharp Drop in Cross‑Border Spending
Statistics Canada reports that Canadians spent $3.3 billion less travelling to the United States in 2025 compared with 2024, bringing total U.S. visit spending to $18.1 billion.
The decline was driven primarily by lower leisure spending, which fell $2.2 billion to $12.1 billion.
Overall, Canadians made 7.4 million fewer trips across the border in 2025, and leisure visits from Canada dropped by 3.2 million, a 21.5 percent decrease.
Shift to Home and Abroad Destinations
Domestic travel rose by 5 million trips, while international travel increased by 1.3 million, largely offsetting the loss of U.S. trips.
Spending on leisure travel abroad, excluding the United States, climbed $3.6 billion to $22.8 billion in 2025, representing just under half of total outbound travel expenditure.
Domestic travel spending grew 8.7 percent to $81.3 billion, propelled by an 8.1 percent rise in leisure travel spending within Canada.
Signs of a Possible Recovery
Car Trips Rise, Air Travel Still Down
In April, return trips by car to the United States increased 5.8 percent year‑over‑year, while plane trips fell 8.1 percent.
May saw a stronger rebound: car trips rose 15.1 percent, but plane trips declined 5.5 percent, leading to an overall 9.5 percent rise in cross‑border travel.
June continued the trend with a 5.2 percent increase in car trips and a 3.8 percent drop in plane trips.
Trade Tensions and Tariffs Influence Outlook
The decline in cross‑border travel began in December 2024, a month after former President Trump suggested Canada could become the “51st nation,” and has persisted for 15 consecutive months, a pattern observers link to the U.S. trade war.
A Nanos poll for CTV News found that eight in ten Canadians still believe avoiding American goods and travel helps strengthen Canada’s negotiating position.
Recent data follow Trump’s announcement of a new 50 percent tariff on Canadian goods and a separate set of 10‑12.5 percent tariffs imposed on 60 countries, including Canada, after a forced‑labor investigation, marking the latest escalation in an 18‑month trade dispute.
Whether these tariff measures will further affect Canadians’ travel habits remains uncertain.
