US-Canada Tensions Raise Concerns for U.S. Travel Association

The organization estimates that a potential 10% drop in Canadian visits could result in a $2.1 billion loss.

06/03-2025 - Recent trade tensions between the United States and Canada are raising concerns about their impact on the U.S. tourism sector. The U.S. Travel Association has released a study warning of the potential consequences of a decline in Canadian tourist numbers, as they represent the largest source of international visitors to the U.S.

According to the association, Canada accounted for 20.4 million visits to the U.S. in 2024, generating a total of $20.5 billion in spending and supporting 140,000 American jobs. However, a 10% decline in this flow could mean 2 million fewer visits, $2.1 billion in lost revenue, and 14,000 job losses.

The situation escalated following statements by Canadian Prime Minister Justin Trudeau, urging citizens to travel domestically: “Now is the time to choose Canada... This might mean changing your summer vacation plans to explore our national parks and historic sites.”

The most visited U.S. states by Canadians—Florida, California, Nevada, New York, and Texas—are expected to feel the impact of this decline, particularly in the retail and hospitality sectors, as shopping is the primary leisure activity for Canadian visitors.

To read the full U.S. Travel Association analysis, click here.

Impact on the Tourism Industry

Travel and Tour World (TTW) has also covered the association’s analysis, pointing out that the U.S. travel boycott could have even broader economic consequences. The report highlights that former President Donald Trump’s proposal of a 25% tariff on Canadian imports created economic uncertainty and a temporary drop in the Canadian dollar, fueling the wave of trip cancellations to the U.S.

Beyond individual travelers, Canadian schools and businesses are also reevaluating their trips to the U.S. Quebec’s Minister of Education, Bernard Drainville, suggested that 10th-grade students reconsider their annual trips to New York, while several schools are redirecting excursions to domestic destinations like Toronto. Travel companies are also seeing significant declines in U.S. bookings, amounting to losses in the hundreds of thousands of dollars.

Florida, a top winter destination for Canadians, is expected to be one of the hardest-hit states. An estimated 1.3 to 1.5 million Canadians visit the state annually, spending nearly $975 million. New York and California are also likely to feel the effects of the decline in visitor numbers.

With escalating trade tensions, the U.S. tourism industry faces growing uncertainty. The future of the sector will depend on the outcome of negotiations between the two countries.

Read the full Travel and Tour World article.