- Canadian trips to the US reached 2.3m in July, up 10.2pc year on year
- New US tariffs on Canadian goods have reignited political tensions
- 70pc of Canadians feel less likely to travel to the US due to political frictions
- Canadians trimmed US spending by $2.3bn during the initial 2025 friction
- US visits to Canada grew by 6pc as American travellers took advantage of the strong dollar
Renewed trade tensions between Washington and Ottawa risk reversing that progress and affecting cross-border leisure travel volumes between Canada and the USA> Canadian tourism to the United States has shown recovery signs this summer, with 2.3m return trips recorded in July representing a 10.2pc increase year on year.
Following the collapse of trade negotiations, the United States imposed a 50pc tariff on approximately $20bn of Canadian goods, prompting Canadian Prime Minister Mark Carney to announce matching dollar-for-dollar counter-tariffs. This economic conflict has reignited political tensions and prompted Canadian travellers to boycott US vacations in favour of domestic trips or overseas holidays.
Cross-border travel had shown positive momentum in mid-2026, but the new trade battle risks reversing these fragile gains. The initial trade fallout in 2025 caused Canadian trips to the United States to plunge by 25pc, and recent polls indicate that 70pc of Canadians feel less likely to travel to the United States due to political frictions. Canadians trimmed their United States spending by an estimated $2.3bn during the initial 2025 friction, heavily impacting American border states and major hubs where Canada serves as the number two tourism market. United States hospitality groups and airlines have rolled out discounts of up to 30pc off New York attractions and cheaper flights, yet many Canadian vacationers have declined the offers.
Domestic travel spending in Canada reached $23.5bn in early 2026 as vacationers redirected their cash to support local Canadian markets. United States visits to Canada grew by over 6pc, aided by a strong US dollar and upcoming World Cup events. The United States administration’s planned implementation of a $250 visa integrity fee has drawn sharp criticism from groups including the US Travel Association, with industry experts warning that hiking fees acts as a self-imposed tariff that discourages legal international visitors.
Peter Harris, a spokesperson for the Tourism Industry Association of Canada, shared: “The renewed trade tensions between Canada and the United States are creating significant uncertainty for the tourism sector on both sides of the border, and the full impact on cross-border travel will depend on how long these trade measures remain in place.”
