In July 2025, Canada experienced its seventh consecutive month of declines in travel to the U.S., as highlighted in a report by Statistics Canada. The statistics revealed a significant drop in the number of Canadians returning from the U.S. via car, with a staggering 36.9% decrease compared to July 2024. Similarly, air travel also saw a notable decline, with a 25.8% reduction in Canadians returning by air. This trend is alarming, as it reflects broader concerns regarding cross-border travel habits, as nearly 1.7 million Canadians opted for car travel over 2.6 million the previous year, and only 383,700 returned by air.
The downturn in travel correlates with various factors, particularly U.S. President Donald Trump’s inauguration and his contentious trade policies, which have created an atmosphere of uncertainty. The recent introduction of 35% tariffs on goods not included in the Canada-United States-Mexico Agreement (CUSMA) has deterred many Canadians from visiting the U.S. The implications of the trade war extend beyond economics; they have fostered a sentiment among Canadians who are re-evaluating their perception of the U.S. as a travel destination.
Despite the decline in travel to the U.S., the data indicates that return trips from overseas markets have been increasingly popular among Canadians. Specifically, there was a 5.9% increase in overseas return trips, amounting to approximately one million travelers compared to the previous year. This surge indicates a potential shift in travel preferences, with Canadians opting for international destinations over their southern neighbor.
The report also details a rise in non-resident arrivals to Canada, with data indicating a 3.1% increase in air travel from abroad. This includes 714,700 travelers from the U.S. and 729,800 from other countries. The increased interest in visiting Canada can be seen as a silver lining amidst the declining U.S. travel statistics, illustrating that while cross-border relations may be strained, Canada continues to attract foreign tourists.
However, it’s important to note that American travelers are also showing reluctance to visit Canada by vehicle, experiencing a 7.4% decline compared to the same time last year. This marks the sixth consecutive month of drops in U.S. vehicular travel to Canada, with nearly 1.8 million Americans crossing the border, down from 1.9 million in the previous year. This trend may further exacerbate economic challenges for Canadian border towns reliant on American tourism.
Surveys from the Pew Research Center shed light on the evolving perspective of Canadians toward the U.S. While a majority (55%) still see America as Canada’s most significant ally, a growing 59% view it as a potential threat. This mixed sentiment may influence future relations and travel between the two nations, suggesting a complex interplay of politics, economics, and public perception that will shape cross-border interactions moving forward.
