Canadian tourism slumped in the U.S. last year amid heightened tensions

Core Impact Points

• Canadian tourism to the US fell 25% in 2025, with Canadians spending $13.3 billion, down from nearly $15 billion in 2024.
• The decline in tourism was attributed to increased political and trade tensions between the US and Canada, including President Trump's tariffs and suggestion that Canada should become the 51st state.
• Canadians opted for domestic travel instead, with domestic travel rising by 5.1 million and total visits to destinations outside the US increasing by 1.3 million.
• The US tourism industry may face significant losses due to the decline in Canadian tourism, which has historically been a significant contributor to US tourism revenue.
• The White House disputed the findings, claiming that President Trump's policies have benefited US tourism, citing increased safety and major events like the Los Angeles Olympics and FIFA World Cup.
• The decline in Canadian tourism may have implications for US businesses that rely on international tourism, such as hotels, restaurants, and attractions.