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Travel
07 March 2025

Canadians Rethink U.S. Trips Due To Weak Dollar And Tariff Threats

Travel bookings to American destinations drop significantly as Canadians alter plans, some opting for destinations like Mexico instead.

Canadians preparing for spring travel are reconsidering their trips to the United States, with many canceling plans due to rising tariffs and the weak Canadian dollar. According to reports from the travel agency Flight Centre Travel Group Canada, leisure bookings to American destinations have fallen sharply, with aggressive pricing contributing to the reluctance of Canadian travelers to cross the border.

Flight Centre highlighted significant changes lately, noting a 40 percent drop in leisure bookings to American cities for February 2025 when compared to the previous year. Disturbingly, one out of five travelers has canceled U.S. trips over the past three months, leaving travel outlets scrambling to adapt to these sudden shifts.

For Amy and Matthew Gleiser from Paris, Ontario, these developments prompted them to abandon their long-planned 10-day trip to Myrtle Beach, South Carolina. Amy explained their decision succinctly: cWith all of the tariff threats and this constant 'Canada is a 51st state' — which we hate — we just decided... we really didn't feel in good conscience... to go down to the United States and spend money... on the economy...out to hurt us as Canadians right now,d she expressed to The Canadian Press. Instead, the family pivoted to Mexico, opting for a more favorable destination.

Their story reflects broader sentiments among Canadians, many of whom echo similar frustrations. A prime example is Lisa Charters, a resident of Toronto who planned to go to Palm Springs for the BNP Paribas Open. Although her trip was booked months prior, she too opted to change her plans, stating, cFor me, it has been building. I can't even...imagine Canada would be part of the United States. We are a completely different country,d reaffirming her dedication to avoiding U.S. travel.

International tensions have been heightened by U.S. President Donald Trump's recent administration actions. On March 4, 2025, Trump imposed 25 percent tariffs on Canadian goods alongside additional levies on energy. While on the following day, the President provided limited relief, announcing a month-long reprieve for the auto sector, he later postponed additional tariffs impacting many Canadian goods. These back-and-forth tariff announcements contribute to the uncertainty felt by Canadians and heavily influence travel decisions.

Flight Centre spokesperson Amra Durakovic has taken note of this trend. Despite the cancellations to U.S. destinations, she reassured Canadians prospects for travel remain optimistic, stating, cExpand your horizons. Canadians aren't stopping travel. They're just...looking to other destinations,d indicating many are now choosing to vacation in warmer locales like Mexico, Aruba, and St. Lucia.

Supporting this shift, major airlines are adjusting their flight schedules accordingly. Air Canada announced plans to reduce flights by 10 percent to popular markets like Florida, Las Vegas, and Arizona starting March 2025; this action is typically anticipated during the spring travel season. Additional findings from aviation data firm Cirium indicate there has been a 24 percent year-over-year decrease in U.S.-bound flights for budget carrier Flair Airlines this March. Air Transat has also noted its figures fell by 12 percent, with Sunwing Airlines completely cutting U.S. flights.

Nevertheless, travel volumes during March Break are expected to be substantial. Spokesperson Sean Davidson from Toronto Pearson Airport indicated their commitment to coping with the surge, with 1.31 million travelers projected to pass through the airport. cIt’s going to be busy, but we’re ready to welcome over a million people who are going to be travelling over this next week,d Davidson reassured, indicating close to 1,000 flights daily over the most active travel days.

Despite feelings of disappointment surrounding international travel, many Canadians are finding ways to modify their vacation plans without sacrificing enjoyment. The current environment reminds tourists of the power they wield simply by choosing where to spend their money. Each decision made by travelers contributes directly to the larger narrative of economic relations between Canada and the U.S. and demonstrates just how uniquely important these choices are.