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U.S. News
15 March 2025

Decline Of Canadian Travel To U.S. Stirs Economic Concerns

Tariffs imposed by Trump fuel domestic vacation push and international 'Boycott USA' sentiment.

The relationship between Canada and the United States is experiencing noticeable strain, particularly as tariffs imposed by President Donald Trump take their toll on travel and commerce between the two nations. Statistics Canada has reported a staggering 23% drop in the number of Canadians taking road trips to the U.S. last month compared to February of the previous year, the second month of decline reported since March 2021. This downturn is attributed, at least in part, to the economic tensions stirred by Trump's executive order to levy 25% tariffs on imports from Canada and Mexico, which took effect on February 1, 2025.

Outgoing Prime Minister Justin Trudeau, whose term wrapped up with the upcoming appointment of Mark Carney, has publicly urged Canadians to reconsider their travel plans to the United States and instead support domestic tourism. “While Canadians remain eager to travel, they are increasingly shifting their focus to destinations outside the US,” noted Amra Durakovic, spokesperson for Flight Centre Travel Group Canada, which has reported a 40% decrease in leisure bookings to the U.S. this February compared to last year.

Surveys reflect the growing sentiment for domestic travel among Canadians. A recent Leger survey of around 1,500 Canadians indicated nearly half of respondents are less inclined to visit the U.S. this year, and approximately six out of ten plan vacations within Canada instead. Rachel J.C. Fu, director of the University of Florida's Eric Friedheim Tourism Institute, stated, “The drop in Canadian visits is closely linked to the U.S. tariffs imposed on February 1.” Fu emphasized how these tariffs may have influenced Canadian consumer sentiment significantly.

The ramifications of decreased Canadian travel to the U.S. could be severe for the American economy. The U.S. Travel Association warned last month of estimated losses amounting to $2.1 billion and the potential loss of approximately 14,000 jobs, particularly affecting states such as Florida, California, and Nevada where Canadian tourists are most numerous. Tony Poletti, owner of Marketside Restaurant located on the border with Canada, remarked, “It’s just a matter of time before we feel the impact of it,” forecasting significant repercussions for businesses reliant on Canadian clientele.

Market responses to the tariffs have already manifested as volatility on Wall Street. Following Trump’s suggestion of recession during interviews, major stock indices fell, with the S&P 500 entering what analysts term correction territory. On March 11, Trump’s announcement concerning additional tariffs on Canadian steel and aluminum—which would have increased the tariff rate to 50%—sent stocks tumbling before he backtracked and assured investors the tariffs would not go through. This hem and hawing adds to the uncertainty surrounding U.S.-Canada trade relations.

Meanwhile, international sentiment against U.S. goods has escalated under the banner of “Boycott USA,” which has particularly gained traction across Europe and Canada. Four EU countries topped Google search trends for “Boycott USA,” with significant online communities forming to oppose U.S. products. For example, Denmark boasts nearly 73,000 members on its “Boycott goods from the U.S.” Facebook page, making it one of the largest movements challenging American products. Similar groups have cropped up across Sweden and France, demonstrating a widespread drive to substitute U.S. goods.

Ontario Premier Doug Ford has joined the chorus against the tariffs, canceling a lucrative $100 million contract with Musk's Starlink as a direct response. He noted his discontent, emphasizing Ontario’s commitment to local businesses over American imports. A new survey revealed 85% of Canadians are planning to replace or have already substituted U.S. products due to the tariffs, indicating how deeply Trump's policies are impacting consumer behavior.

One notable cultural backlash occurred when German violinist Christian Tetzlaff canceled his scheduled U.S. tour, citing Trump’s policies as the motivating factor. This cancellation adds yet another dimension to the growing discontent aimed at U.S. leadership, particularly as international figures express solidarity with Canadian sentiments against the tariffs.

Even foreign firms have begun adjusting their business dealings due to Brexit and U.S. relations. Norwegian fuel supplier Haltbakk Bunkers has opted out of supplying the U.S. Navy over its dissatisfaction with the treatment of Ukrainian President Volodyr Zelensky at the White House, calling its decision symbolic.

Overall, the tightening grip of Trump's trade tariffs is not only influencing travel behaviors but also reshaping perceptions of American products abroad and sparking broader discussions around nationalism and economic sovereignty. If Canadian travel to the U.S. continues to decline amid tariff disputes and international backlash, then the U.S. tourism and economy could find themselves facing extensive repercussions.