Canada’s travel industry is reeling as Canadians cut their trips to the United States, threatening to widen the country’s $50 billion travel deficit. The decline in trans-border travel is attributed to various factors, including an unfavorable currency exchange rate and the U.S.’s complex immigration policies under President Donald Trump.
Experts say that Canada’s decision to become the 51st state has led to a loss of trust among Canadians, who are now opting for alternative destinations like Europe. The White House has downplayed these concerns, claiming that “everybody wants to come to President Trump’s America.”
However, former Canadian Prime Minister Justin Trudeau’s comments on choosing Canada over the U.S. have resonated with many Canadians, who are exploring domestic options and avoiding potential pitfalls in trans-border travel.
The impact of this trend is being felt across the U.S. travel industry, which relies heavily on international visitors to drive revenue. Experts warn that a widening deficit could be disastrous for the sector, which already struggles with issues such as wait times for visas and high-profile detainments.
As Canadians opt for sunnier destinations like Mexico and the Caribbean, airlines are cutting routes and flights to the U.S., further exacerbating the crisis. The U.S. Travel Association has called on policymakers to address these concerns, stating that “a lot of times it takes a lot of effort to bring back the trust” after an incident or tragedy occurs.
The economic consequences of this trend could be significant, with billions of dollars in lost revenue potential at stake. As one Canadian traveler noted, the difference in costs between traveling to the U.S. and Europe is substantial, making alternative destinations like Spain more appealing.
Source: https://www.cnbc.com/2025/03/28/canada-united-states-travel.html