# Canada-US travel decline shows signs of mid-2026 recovery

> Live situation record from CLSTR: https://clstr.news/situations/canada-us-travel-spending-decline
> Updated: 2026-09-06T11:42:11.000Z. Sources: 36. Developments: 6.

The sharp contraction in Canadian outbound travel to the United States, triggered by President Donald Trump’s return to office in 2025, has shown signs of a slight recovery in mid-2026, though industry uncertainty persists.

Data from 2025 confirmed a 23.5% drop in Canadian visitors, with 7.1 million fewer travellers and a C$3.3 billion decline in travel spending. This downturn was linked to heightened trade tensions, including a 50% tariff on various Canadian products and rhetoric suggesting Canada could become a “51st state.”

By July 2026, Canadian-resident return trips from the U.S. rose to 2.3 million, a 10.2% increase compared to July 2025. While automobile return trips increased by 12.8%, air travel return trips saw a 1.4% decrease. The Gordie Howe International Bridge, opened July 27, 2026, recorded 18,900 automobile return trips in its first five days.

However, broader industry data suggests a complex recovery. Flight Centre Travel Group reported that U.S. leisure bookings from January through August 2026 were down 7.4% year-over-year, remaining 39% below July 2024 levels. Conversely, business travel appears more resilient, with Corporate Traveller Canada reporting a 4.8% increase in cross-border air bookings through July. 

As trade negotiations have failed, Canadian travelers are increasingly redirecting leisure spending toward Mexico, the Caribbean, Europe, Japan, and Southeast Asia. In response to an informal boycott, American tourism groups have launched promotional efforts, such as New York’s ‘NY Loves Canada’ campaign and Las Vegas hotels treating the Canadian dollar as equal to the U.S. dollar. Despite these efforts, some observers describe these campaigns as a ‘wasted effort’ given the current political climate.

## Claims

- In 2025, 7.1 million fewer Canadians traveled to the United States than in 2024, a 23.5 % decline. (disputed by 4 sources)
- The U.S. Commerce Department reported 20.2 million Canadian visitors to the United States in 2024 and 16 million in 2025. (disputed by 4 sources)
- Canadian trips to the United States fell 25% in 2025, from 39 million to 29.1 million. (disputed by 3 sources)
- President Donald Trump suggested making Canada the 51st U.S. state. (corroborated by 5 sources)
- The U.S. government was ordered to change the name of Lake Ontario to ‘Lake America’. (corroborated by 5 sources)
- The U.S. imposed import taxes of up to 50% on various Canadian products. (corroborated by 5 sources)
- The Canadian government responded to U.S. import taxes with reciprocal measures. (corroborated by 5 sources)
- Canadian Prime Minister Mark Carney dismissed insults from the Trump Cabinet as ‘childish and undignified’. (corroborated by 5 sources)
- New York state launched a ‘NY Loves Canada’ promotion featuring discounts at various attractions. (corroborated by 5 sources)
- Some hotels in downtown Las Vegas are treating the Canadian dollar as equal to the U.S. dollar. (corroborated by 5 sources)
- U.S. tourism organizations are attempting to win back Canadian visitors through various marketing campaigns. (corroborated by 5 sources)

## Timeline

### 2026-09-06: US tourism groups attempt to win back Canadian visitors amid trade war

US tourism groups are attempting to win back Canadian visitors through discounts and promotions as a trade war and diplomatic rift between the two nations continue to impact travel.

10 sources. https://clstr.news/cluster/us-tourism-groups-target-canadian-travelers-amid-trade-war

### 2026-08-26: Canada-U.S. trade tensions impact travel industry

Trade tensions and retaliatory tariffs between Canada and the U.S. are causing Canadian travelers to redirect leisure spending to other global destinations, threatening a fragile U.S. tourism recovery.

3 sources. https://clstr.news/cluster/canada-us-trade-tensions-impact-travel-industry

### 2026-08-10: Canada-US cross-border travel and tourism trends

Canadian return trips from the US rose 10.2% in July 2026, while polling shows 79% of Americans maintain a favorable view of Canada despite political tensions.

2 sources. https://clstr.news/cluster/canada-us-cross-border-travel-and-tourism-trends

### 2026-07-29: Canadian tourism to US drops 25% amid Trump tariffs

Canadian trips to the US fell 25% in 2025, cutting tourism revenue by $3.3 bn CAD, as Trump tariffs and “51st state” remarks strain relations; Canadians shifted to domestic and overseas travel.

7 sources. https://clstr.news/cluster/canadian-tourism-to-us-drops-25-amid-trump-tariffs

### 2026-07-27: Canadian travel to US falls 23% after Trump’s second term

Canadian travel to the U.S. fell 23.5% in 2025 after Trump’s second term, cutting visitor numbers by 4.2 million and spending by C$3.3 bn, while relations soured over tariffs and rhetoric.

10 sources. https://clstr.news/cluster/canadian-travel-to-us-falls-23-after-trumps-second-term

### 2026-07-22: Canadian travel spending to US drops $3.3 billion in 2025

StatCan says Canadians spent $3.3 billion less traveling to the US in 2025, while domestic trips rose to $81.3 billion and non‑US overseas travel to $22.8 billion.

6 sources. https://clstr.news/cluster/alberta-unveils-official-whisky-logo-to-boost-provinces-spirits-industry

---
Cite as: Canada-US travel decline shows signs of mid-2026 recovery. CLSTR, https://clstr.news/situations/canada-us-travel-spending-decline
