It’s a paradox that would make even the most seasoned economist scratch their head: while Canadians are shunning American vacations and boycotting U.S. products in protest of the ongoing trade war, they’re simultaneously pouring record amounts of money into U.S. stocks and government bonds. The numbers are eye-popping and the contradictions, well, they’re hard to ignore.
According to data from the National Bank of Canada Financial Markets, Canadians invested an unprecedented $50 billion into U.S. securities at the height of the 2025 trade war—the most since at least 1990. Most of that money, $35 billion, went into U.S. stocks between February and May 2025, with another $14 billion channeled into U.S. treasuries over the same period. As Warren Lovely, managing director at National Bank Financial in Toronto, observed in a recent report, “Canadian investors have opted to load up on US financial assets since President Trump was sworn in,” calling the pace “unprecedented.”
That’s not to say Canadians haven’t tried to send a message. The “Buy Canadian” mantra has gained traction in the aisles of grocery stores and shopping malls, as consumers skip over American-made goods in favor of domestic alternatives. Yet, as Lovely points out, “this ‘Buy Canadian’ bias hasn’t really shown up where it arguably matters most: in portfolio investment flows.” In fact, Canadians have been helping to finance the very government that, in their view, has threatened their economic livelihood. “Not exactly the tough message to the American administration some might have advocated,” Lovely noted, a touch of irony in his words.
So, what’s going on? It turns out that when it comes to investments, pragmatism often trumps politics. Moshe Lander, an economics professor at Concordia University and former senior economist for the government of Alberta, told Fortune, “The US boycott is an emotional thing, not an economic thing. A lot of Canadians have realized that there’s a limit to how far they’re prepared to voice their objections.”
On the political front, Canada has been recalibrating its approach. Just last week, Prime Minister Mark Carney scrapped Canada’s counter tariffs on billions of dollars’ worth of U.S. goods. The move came swiftly after a phone call with President Trump, signaling a dramatic shift from the tough-guy rhetoric that helped get Carney elected. For months, Canada had been one of the few countries to aggressively punch back against U.S. tariffs, but now, it appears, the government is opting for trade peace over prolonged confrontation.
Yet, while Canadian dollars are flowing into Wall Street, Canadian travelers are staying away from Main Street, U.S.A. Visits to the United States from Canada are down 25.2% year to date in 2025, with a staggering 37% drop in arrivals by car in July alone, according to Tourism Economics. Amir Eylon, president and CEO of market research firm Longwoods International, explained, “Canadians were already concerned over their personal finances, but they’ve taken the rhetoric and policy announcements from the U.S. administration very personally. Unfortunately, things have gone from bad to worse.”
And the numbers back him up. A whopping 80% of Canadian travelers whose decisions are being influenced by U.S. policy cite tariffs and economic policy as the major negative factor, while 71% point to political statements by U.S. leaders—up from 64% just a few months earlier. Instead of heading south, Canadians are more likely to travel within their own country or book flights to destinations like Mexico, the Caribbean, and Western Europe. “They’re choosing destinations such as Mexico, the Caribbean and Western Europe,” Eylon said.
This isn’t just a Canadian story, either. Geopolitical and policy concerns have also led to a decrease in visitors from Western Europe and Asia. Overseas arrivals to the U.S. dropped for three consecutive months, including a 3.1% dip in July, bringing the year-to-date decline to 1.6%, according to Tourism Economics. The group had initially forecast a 9% increase in international arrivals for 2025, but now expects an 8.2% decline—a dramatic reversal.
Adding to the woes, a new $250 visa integrity fee is set to go into effect on October 1, 2025. The fee, part of President Trump’s signature tax and spending law, will be layered on top of existing visa fees and apply to most nonimmigrant visa applicants, including those from China, Mexico, and Brazil. The U.S. Travel Association has called it “a misguided junk fee” that will hike the upfront costs of visiting the U.S. by 130%—a tough pill to swallow for cities already feeling the sting of declining international visitors as they prepare for major events like the 2026 FIFA World Cup, America’s 250th birthday, and the 2028 Summer Olympics.
In response, tourism organizations across the U.S. are scrambling to win back Canadian visitors. Dave O’Donnell, vice president of strategic communications for Meet Boston, said, “Our international visitors were forecasted to grow by 15% in 2025 but are now forecast to drop by 10%.” Boston’s tourism board is planning winter campaigns and media missions to Mexico, the United Kingdom, and, tellingly, Canada, with an event in Toronto set for September.
Rochester, New York, just 90 minutes from the Canadian border, is feeling the pinch as well. Traditionally, 12% to 15% of its visitors come from Canada, but this year, more Canadians are choosing to stay home or travel elsewhere. Rachel Laber Pulvino, vice president of communications for Monroe County’s tourism agency, said the city has shifted to a “softer” approach, including a “Dear Canada” campaign. “It is essentially a love letter to our neighbors to the north. Our message is simple: When you’re ready, we will be here,” she explained.
The impact is especially acute in northern cities. Canadian visits to the U.S. in 2024 totaled 20.4 million, but 2025 is seeing steep declines, particularly in Seattle (down 27%), Portland (18%), and Detroit (17%). Michael Woody, chief strategy officer for Visit Seattle, remarked, “We typically like to be at the top of lists, but not this one.” Still, he noted that Seattle is enjoying a strong summer thanks to domestic visitors and a robust cruise season.
Florida, on the other hand, is bucking the trend—at least on the surface. Visit Florida Research estimates that 34.4 million visitors traveled to the Sunshine State in the second quarter of 2025, up 5% from the previous year. But even there, Canadian visitors dropped 20% year over year. In the Palm Beaches, international visitation rose 2.56% in the first half of 2025, with growth from markets like Brazil, the U.K., Germany, and Colombia offsetting a 4.4% dip in Canadian visitors. Milton Segarra, CEO of Discover the Palm Beaches, credited the uptick to new tourism offerings and “the global spotlight as President Trump’s selected home base.”
For now, the cross-border relationship between Canada and the U.S. is a study in contradictions. Canadians may be voting with their wallets—both in what they buy and where they travel—but when it comes to investing, they’re still betting big on America. The story of 2025 is one of economic pragmatism colliding with political protest, with both countries learning that, sometimes, money moves in mysterious ways.
