Travel spending to U.S. fell by $3.3B in 2025 amid ‘Buy Canadian’ push

Travel spending to the United States dropped by $3.3 billion in 2025, driven by a growing “Buy Canadian” campaign, according to newly released data from Statistics Canada. The decline marks a shift in how Canadians allocate their travel budgets, with a notable portion of the reduction attributed to political tensions between the two nations. Statistics Canada reported that Canadian spending on travel to the U.S. totaled $18.8 billion in 2025, representing a 21.5 percent drop compared to the previous year. This decline coincided with a rise in overseas travel, which reached $81.3 billion, an increase of 12.2 percent, indicating a clear reallocation of funds. The agency noted that the number of visits to the U.S. decreased by 3.2 million, or 21.5 percent, while visits to foreign destinations increased by 1.1 million, or 12.2 percent. The decision to reduce travel to the U.S. was influenced by the ongoing trade disputes between Canada and the United States, particularly under the leadership of former U.S. President Donald Trump. His administration's aggressive trade policies and rhetoric, including his threat to make Canada the “51st state,” prompted many Canadians to boycott travel to the U.S. as a form of protest. This sentiment was reinforced by the shift in U.S. administration in early 2025, which led to the adoption of “America First” policies, further distancing the two nations politically. The impact of these developments was evident in cross-border travel patterns. Statistics Canada noted that the number of return trips made by Canadian residents from the U.S. rose by 1.8 percent year over year, with a significant portion of these trips being made by car. Return trips via automobile accounted for 8.1 percent of all such journeys, with 65 percent of them being same-day trips. These figures highlight a preference among Canadians for shorter, more convenient travel methods when visiting the U.S. At the same time, the volume of air travel to and from the U.S. declined, with passenger numbers falling 7.9 percent to 29.4 million in 2025. In contrast, domestic air travel within Canada saw a modest increase of 2.9 percent, while travel to other international destinations surged by 5.1 percent. Airlines responded to these trends by canceling some transborder routes and introducing new services to alternative destinations, reflecting the changing preferences of travelers. Leisure-related travel to the U.S. saw a particularly sharp decline, with spending dropping by $2.2 billion to $12.1 billion. This category accounted for the bulk of the overall reduction in spending on U.S.-bound travel. Conversely, spending on leisure-related travel overseas increased by $3.6 billion to $22.8 billion, making up almost half of all tourism expenditures outside Canada. The report emphasized that travel to non-U.S. destinations became a key driver of the $50 billion in tourism spending recorded outside Canada in 2025. The trend continued into early 2026, with early data suggesting that the decline in cross-border travel to the U.S. remained persistent. At the same time, travel to Canada from overseas showed signs of growth, with air arrivals from 15 participating countries rising 32.5 percent in June 2025 compared to the same period the previous year. Events such as the FIFA World Cup, held in Toronto and Vancouver, contributed significantly to this surge, drawing visitors from Australia, Panama, Germany, and other nations.