U.S. tourism hit by continued steep drop in Canadian visitors

Political tensions and new border rules drive a sharp decline with significant economic fallout

The United States is facing a major tourism shortfall as millions of Canadians continue to avoid travel south of the border, citing political tensions, tariffs, and new entry requirements. A new forecast points to billions in lost spending and growing pressure on tourism-dependent states.

Key takeaways

• Sharp decline in canadian travel: Visits from Canadians — the U.S.’s largest international market — have dropped up to 30% year over year, driving a projected $5.7B US decline in tourism spending for 2025.
• Political climate as a deterrent: Many Canadians cite Trump’s trade policies, rhetoric toward Canada, and heightened border security as reasons they are choosing destinations elsewhere.
• Economic risks for u.s. states: Reduced hotel occupancy and visitor spending threaten thousands of jobs, local tax revenue, and municipal finances in tourism-dependent regions.
• Longer stays now more complicated: A new U.S. rule requiring certain long-stay Canadian visitors to register, be fingerprinted, and pay a fee is further discouraging winter travelers.
• Tourism deficit worsening: With fewer international visitors and more Americans traveling abroad, the U.S. is headed for a nearly $70B US travel trade deficit — a major reversal from historic surpluses.
• Local campaigns to lure canadians back: Border-state tourism groups are offering discounts and “welcome passes” as Canadian spending in some towns has fallen nearly 40%.

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