Policy Strains Slash Canadian Expenditure in U.S. by $3.3 Billion, 2025

A notable decrease in Canadian travel spending in the United States was observed in 2025, with expenditures dropping by $3.3 billion compared to the year before. This decline is set against a backdrop of persistent political and trade tensions that have seemingly influenced travel decisions. In 2024, Canadians spent $22.1 billion on travel south of the border, but this figure plummeted to $18.8 billion the following year.

Conversely, there was a rise in Canadian expenditures on international travel outside of the United States, which increased by $3.6 billion, reaching $22.8 billion in 2025. This shift in travel preferences was marked by a notable increase in trips to other regions. Travel to Europe surged by nearly 14%, while visits to Asia saw an almost 17% increase, reflecting Canadians’ growing interest in alternative international destinations beyond the United States.

The year 2025 also witnessed a significant drop in border traffic between Canada and the U.S. The number of return trips from the U.S. to Canada, whether by road or air, declined by about 25% compared to the previous year. July was particularly affected, with border crossings plummeting by approximately one-third, marking the steepest decline of the year.

This trend has not shown signs of reversal as it continued into 2026, with travel volumes to the United States remaining considerably lower than previous levels. Officials examining these figures suggest that this indicates a lasting change in Canadian travel habits, with more Canadians opting for destinations outside of the U.S.

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