...
By Kate Plummer
Senior US News Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
The U.S. could lose up to $6 billion as a result of declining Canadian tourism, according to an analysis of data.
Why It Matters
Since Trump imposed tariffs on Canada, Mexico and China, including a 25 percent tariff on Canadian imports and a 10 percent tariff on Canadian energy imports, concerns have been sparked about a trade war between the two countries.
Read More on U.S.
Some Canadian customers have boycotted American products, encouraged by Prime Minister Justin Trudeau, who called for citizens to "buy Canadian" in response.
...
Meanwhile, Canada has barred Tesla vehicles from being eligible for the country's electric vehicle rebate because of the tariffs and has announced a package of retaliatory tariffs worth C$155 billion.
The issues have impacted the tourism sector, too. According to aviation analytics provider OAG, forward bookings from Canada to the U.S. have fallen by more than 70 percent for every month through to the end of September compared to the same period last year. The U.S. heavily relies on travelers from Canada. If tourism numbers decline, there will be a significant impact on the U.S. economy.
What To Know
According to data from Statistics Canada, there was a 32 percent drop in the number of Canadians who took road trips into the U.S in March 2025 compared to March 2024.
The data said there was also a 13.5 percent decline in air travelers from Canada in a year.
The U.S. Travel Association (USTA) said in February that a 10 percent reduction in tourism from Canada could put 140,000 jobs at risk and result in $2.1 billion in lost spending. Forbes said that, using that calculation, a decline of 30 percent in Canadian visitors would cost the U.S. economy $6 billion in losses.
What People Are Saying
Bryan S. R. Grimwood, professor and associate chair at the department of recreation and leisure studies at the University of Waterloo, told Newsweek there is "a significant change in Canadian travel preferences and decision-making" which is "significant" for relations between the U.S. and Canada.
"In my read of the situation, the decline in Canadian travel to the US is a function of three interrelated things: (1) an uncertainty about visiting the US due to potential safety concerns and inconvenience (e.g., at the border); (2) a refusal to spend travel dollars in the US as a response to the Trump administration's intimidation tactics relating to trade, border security, and sovereignty; and (3) a rise in Canadian patriotism that is translating into a choice to support Canadian businesses, services, and products," he said.
"I do think the decline in Canadian travel to the US is significant for relations between the two countries. My sense though is that Canadians continue to cherish and respect the American people – as our government leaders have consistently expressed – and that the current moment is a reaction specifically to the Trump administration's approach."
Lana Payne, the national president of Unifor, Canada's largest private sector union, previously told Newsweek: "Canada has always considered itself to be America's best friend and closest ally, but that relationship has been severely damaged by the actions of President Trump."
What Happens Next
It remains to be seen whether a U.S. travel boycott by Canadians is sustained and the impact this might have on the U.S. economy.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines