The U.S. tourism industry is experiencing notable challenges, with a decline in international visitors, especially from Canada. Recent data shows a 23% drop in Canadian road trips and a 40% decrease in travel bookings. These shifts come amid growing concerns over the political climate and trade policies.
According to the Washington Post, the tensions are contributing to a significant downturn in tourism, affecting both leisure travel and the broader economic outlook for the industry.
Canadian Tourists Lead the Decline in u.s. Travel
According to Statistics Canada, the number of Canadians driving to the U.S. has dropped significantly, with February showing a 23% decrease compared to the previous year.
This decline follows a call by Prime Minister Justin Trudeau urging Canadians to explore domestic travel options rather than visit the U.S. in response to tariffs imposed by the Trump administration.
Leisure bookings are also affected, with Flight Centre Travel Group reporting a 40% drop in U.S.-bound leisure travel for February compared to the year before.
In a survey conducted by Leger, almost half of the Canadians polled said they were less likely to visit the U.S. this year, while 60% indicated that they planned to take their vacations within Canada.
The decline in Canadian tourism is expected to result in a 15% drop in travel from Canada this year, which would translate to a $3.3 billion loss for the U.S. economy, according to Tourism Economics.
The Broader Impact of u.s. Tariffs and Rhetoric on International Tourism
The U.S. has seen a general decline in international tourism, with significant drops in visitors from Africa, Asia, and Central America. According to Tourism Economics, international travel to the U.S. is expected to decrease by 5% in 2025, a substantial change from earlier projections.
The 25% tariffs and the President’s combative tone towards global trade partners have led many to rethink their travel plans.
Adam Sacks, president of Tourism Economics, explained the shifting sentiment :
There’s been a dramatic shift in our outlook. You’re looking at a much weaker economic engine than what otherwise would’ve been, not just because of tariffs, but the rhetoric and condescending tone around it.
These words underscore how the political environment is influencing consumer decisions, with many travellers avoiding the U.S. out of frustration with the administration’s policies.
Economic Consequences of Declining International Tourism
This downturn in travel is not only a blow to the tourism sector but also to the broader U.S. economy. The U.S. Travel Association estimates that the decline in Canadian travel alone could cost the country $2.1 billion.
Regions like Florida, California, and Nevada, which are popular among Canadian tourists, are expected to feel the hardest impact.
In addition to the direct financial losses, the U.S. tourism sector also faces broader economic uncertainty, with financial markets in turmoil. As Delta Airlines CEO Edward Herman Bastian noted,
People are cautious and they’re pulling back a little bit on travel, kind of waiting to see what’s going to transpire, whether it’s trade and tariff challenges or macroeconomic policy changes.
Many consumers are reducing their spending, and travel is one of the first areas they are cutting back on. According to Jonathan de Araujo, owner of the Vacationeer, a Disney-focused travel agency,
When there’s trouble in the economy, the first thing people cut is their travel budget. They wait until it’s time to pay in full, and they say, ‘Actually I can’t afford this.’ That’s what I’m worried about.
Local Businesses in Border Regions Brace for Impact
Businesses in U.S. cities along the Canadian border, such as Niagara Falls, are already experiencing the effects of declining cross-border travel. Local restaurant owners and shopkeepers fear that the loss of Canadian customers will lead to long-term economic strain.
Some, like Tony Poletti, a family-run restaurant owner, warn that the full impact has yet to be felt.
It’s going to have a bigger impact on businesses in Niagara County than people could imagine – Poletti said.
Penelope Poole, a resident of the Philippines, who had planned a family cruise in Florida with her 90-year-old mother, cancelled her trip due to concerns about the “early volatility and hostility” of the Trump administration.
My siblings and I decided that given the early volatility and hostility of this administration, we couldn’t take a chance – she said, adding,
We were increasingly concerned about personal safety.
Shifting Attitudes and the Wider Fallout
The broader sentiment of discontent towards the U.S. is not limited to Canadians. Europeans, particularly those from countries like Germany, are changing their travel plans in response to the Trump administration’s rhetoric.
Jens Muellers, who was planning a road trip through U.S. national parks, now plans to visit Canada instead.
It’s a real shame and breaking my heart to see what is happening with the national parks and [its] employees right now – he shared.
We won’t come back to the U.S. until things change significantly.
The U.S.’s ongoing trade disputes and political tensions have led to significant consequences for the tourism industry, with more travelers reconsidering their plans.
All of this talk of making Canada the 51st state has been upsetting. It’s just incredibly offensive – said Bertha Lopez,
a Canadian resident originally from Mexico, who has vowed to stop buying American products and visiting the U.S.
So I’m doing what I can : No more Tide. No more Coca-Cola. No more Disney. And barring a funeral or someone in the hospital, I am not going to the United States.
While U.S. domestic travel has also shown signs of slowing down, with airlines adjusting forecasts and some businesses feeling the pinch from economic uncertainty, the effects of the U.S.’s trade policies on international tourism seem poised to last longer, potentially affecting the industry for years to come.
The uncertainty surrounding U.S. economic policy only adds to the broader concerns, with economists warning that consumer sentiment is at a low point.
“The fog is just too thick — we can handle bad news, but consumers can’t handle uncertainty, and that’s what we have – said economist Sung Won Sohn.
Things have gotten very serious, very quickly.
The travel decline is just one of many indicators that highlight the growing tensions between the U.S. and its international partners, leaving businesses and consumers alike facing an uncertain future.
