Canadians aren’t just avoiding American products because of President Trump’s tariff threats and talk of annexation: They’re staying home, too, with costly implications for U.S. destinations and the travel industry.
Canadian residents flew back from 585,700 trips to the U.S. in February, a 13.1% decline from February 2024, according to Statistics Canada.
Canadian-resident return trips by car plummeted 23% in February, year over year, to 1.2 million.
The drop is being attributed to upheaval around U.S.-Canada relations as Mr. Trump threatens to make Canada the 51st state. Also, there are reports of more aggressive screening for tourists and visa holders at points of entry into the U.S.
When Mr. Trump issued tariff threats earlier this year, then-Prime Minister Justin Trudeau urged Canadians to keep their dollars at home.
“Now is the time to choose Canada,” Mr. Trudeau said. “It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer.”
At least some residents appear to be listening.
There are “Buy Canadian” signs at alcohol stores and other retailers up north, and Canadian airlines are cutting seat capacity for trips to the U.S. in upcoming months.
Calgary-based WestJet told The Wall Street Journal it’s seen a “shift in bookings from the U.S. to other sun destinations such as Mexico and the Caribbean among Canadian travelers,” while other Canadian airlines have canceled routes to U.S. destinations like Phoenix and Nashville.
Canada is the biggest source of international visitors to the United States, with 20.4 million visits in 2024, according to The U.S. Travel Association.
Those visits generated $20.5 billion in spending and supported 140,000 American jobs, the association said.
The association estimates that a 10% reduction in Canadian travel could mean 2 million fewer annual visits, resulting in $2.1 billion in lost spending and 14,000 job losses.
Mr. Trump is standing pat and repeating his belief that economic problems would disappear if Canada became the 51st state.
“The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!” he posted March 11 on Truth Social.
Mr. Trump imposed a 25% tariff on Canadian and Mexican goods earlier this month, only to exempt automakers and a full suite of goods under the North American trade agreement he struck during his first term.
His threats to impose new tariffs remain, however, and he’s imposed a 25% tariff on steel and aluminum imports from all countries.
Mr. Trump is also tightening the rules around Canadian “snowbirds” who spend a long time in the U.S. during colder months. As of April 11, snowbirds who plan to stay for over 30 days must register their presence with immigration authorities.
