Decrease in Car Travel to U.S. from Canada: A 37% Dip Recorded in Car Journeys
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The United States has experienced a significant drop in Canadian travel this year, with the downward trajectory predicted to result in a loss of at least $21 billion in travel-related exports by the end of the year [1].
According to recent data, air travelers from Canada decreased by 26% year-over-year in July, and road trips into the U.S. decreased by 37% compared to July 2024 [2]. This decline adds up to an enormous loss for U.S. tourism.
Canadians have historically made up approximately one-quarter of all foreign travelers who come to the United States. The decline in Canadian travel to the U.S. in 2025, as reported by Tourism Economics, was primarily driven by negative traveler sentiment influenced by political factors [1].
Adversarial trade policies, such as new tariffs imposed on Canadian exports like lumber, aluminum, and dairy, aimed at reducing Canadian trade advantages, have played a significant role in this decline [3]. Moreover, the controversial suggestion that Canada should become the “51st state,” made by the Trump administration, negatively affected Canadian perceptions and willingness to travel to the U.S. [2].
Stricter immigration and border security measures have also created fear and uncertainty among Canadian travelers about crossing into the U.S. [2]. These political and policy-driven tensions have led to a broader sentiment headwind, contributing to an 8.2% forecasted decline in total international overnight arrivals to the U.S. in 2025 [1].
The impact was most severe in U.S. cities near the Canadian border heavily reliant on Canadian visitors, such as Seattle, Portland, and Detroit, which experienced declines in overnight visitors from Canada by 26.9%, 18.3%, and 17.3% respectively [1].
In the first six months of 2025, Canadian travel to the U.S. was down 24% overall. The Great Lakes region saw double-digit drops, with Detroit (-17%), Cleveland and Buffalo (-15%), Minneapolis (-14%), Columbus (-13%), Indianapolis (-12%), and Milwaukee (-12%) experiencing significant declines [1].
Portland, Oregon had an 18% decrease in Canadian tourists, while July marked the seventh consecutive month of steep declines in inbound Canadian travel, with both car and air travel to the U.S. experiencing double-digit year-over-year drops since April [1].
The recent announcement of a travel ban is expected to have a limited impact but will add to the perception of the U.S. as a less predictable and welcoming destination [5]. However, the number of Americans flying to Canada slightly increased by 0.7% in July compared to a year ago [2].
For every 1% drop in international visitor spending, the U.S. stands to lose $1.8 billion in travel-related exports [6]. The decline in US inbound arrivals is attributed to Trump administration policies and statements that have shifted sentiment and raised concerns among potential travelers.
In summary, the sharp reduction in Canadian travel to the U.S. in 2025 reflected a mix of political tensions, trade disputes, and border security concerns, which collectively discouraged Canadians from visiting, especially impacting border cities heavily dependent on their tourism [1][2][3][4].
[1] Tourism Economics (2025). U.S. Travel Forecasts and Analysis. [2] Statistics Canada (2025). Canadian Tourist Travel to the United States. [3] U.S. Trade Representative (2025). Tariffs on Canadian Imports. [4] Destination Marketing Association International (2025). U.S. Travel Trends Report. [5] White House Press Release (2025). New Travel Ban Announcement. [6] U.S. Travel Association (2025). Economic Impact of International Visitor Spending.
- Due to political factors and trade disputes, such as the imposition of tariffs on Canadian exports and the suggestion that Canada should become the 51st state, it seems that there is a growing movement among Canadian tourists to boycott US travel, contributing to a decline in US tourism.
- As a result of political tensions, stricter immigration and border security measures, and adversarial trade policies, the lifestyle and travel choices of many Canadians have shifted away from the United States, leading to a significant drop in Canadian tourists visiting the US.
- With the growing unfavorable sentiment towards US policy and legislation among Canadians, there has been a noticeable decline in both car and air travel between Canada and the US, which has added to the overall decline in US travel and tourism.
