Additional Coverage:
- Canadians were urged to boycott travel to the US in response to tariffs — and numbers suggest they listened (businessinsider.com)
Canadian Travel to US Takes a Dive After Tariff Tiff
Cross-border tensions between the US and Canada appear to be impacting travel, with Canadians opting to stay home. Statistics Canada reported a 23% drop in Canadians driving to the US in February compared to the same time last year.
This marks the second consecutive monthly decline and the second downturn since March 2021. The decline in leisure travel is even more pronounced.
Flight Centre Travel Group, a prominent Canadian travel agency, reported a staggering 40% year-over-year decrease in US leisure bookings for February. A spokesperson for the agency noted that while Canadians still have the travel bug, they are increasingly looking beyond the US for their getaways.
This shift in travel patterns comes after outgoing Prime Minister Justin Trudeau encouraged Canadians to explore domestic travel options rather than visiting the US. Trudeau’s comments were in response to executive orders issued by President Trump, imposing a 25% tariff on imports from Canada and Mexico.
A Leger survey of approximately 1,500 Canadians revealed that Trudeau’s message resonated, with nearly half of respondents indicating they were less likely to visit the US this year, and six in ten planning vacations within Canada instead. Experts link the drop in Canadian tourism directly to the imposed tariffs, citing increased economic tension and negative consumer sentiment.
US Businesses Brace for Impact
The decline in Canadian visitors could have significant economic consequences for the US. The US Travel Association estimates that a 10% drop in Canadian travel could lead to $2.1 billion in lost revenue and 14,000 job losses.
States heavily reliant on Canadian tourism, including Florida, California, Nevada, New York, and Texas, are expected to be the hardest hit. Experts warn that if the trade tensions continue, losses could exceed current projections.
Business owners in border towns like Niagara Falls, New York, are already feeling the pinch. One restaurant owner, whose family has operated their establishment since 1939, shared anecdotes of loyal Canadian customers expressing reluctance to cross the border due to the tariffs.
Market Uncertainty Adds to Concerns
Adding to the economic unease, financial markets have reacted to the ongoing trade dispute. Wall Street experienced declines following President Trump’s comments on a potential recession and his subsequent announcement (and later retraction) of additional tariffs on Canadian steel and aluminum.
Experts warn that if the tariffs remain and economic relations continue to sour, the slump in Canadian travel could persist for months, or even years. The US tourism industry may need to brace for a prolonged downturn if the situation isn’t resolved soon.