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Canadian tourism to the United States has dropped significantly, with visits down 25.2% year-to-date and car arrivals plunging by 37% in July, according to Tourism Economics. Analysts say the decline is largely tied to Canadians’ frustration with U.S. tariffs, political rhetoric, and foreign policy under President Donald Trump.
A Longwoods International survey shows that 80% of Canadians cite U.S. tariffs and economic policies as the biggest deterrent, while 71% say political statements from U.S. leaders have negatively impacted their travel decisions. Many Canadians are instead choosing destinations like Mexico, the Caribbean, and Western Europe, or vacationing at home.
The U.S. tourism industry, already struggling with reduced arrivals from Western Europe and Asia, is bracing for further declines as a $250 visa integrity fee takes effect on October 1. The U.S. Travel Association has labeled it a “misguided junk fee” that could raise upfront travel costs by 130%.
Cities near the Canadian border are feeling the pinch the most. Seattle, Portland, Detroit, and Rochester report steep drops in Canadian visitors. To counter the decline, tourism boards are launching softer, relationship-focused campaigns. Rochester, for example, rolled out a “Dear Canada” campaign, calling it “a love letter to our neighbors to the north.”
Meanwhile, Florida is defying the trend, reporting a 5% rise in total visitors in Q2 2025, even though Canadian arrivals fell 20%. International visitors from markets like Brazil, the U.K., and Germany helped offset the loss.
Tourism experts warn that unless U.S.-Canada relations improve, the downturn could impact key events, including the 2026 FIFA World Cup and America’s 250th anniversary celebrations.
