U.S. Travel Association Flags Tourism Impact as Canadians Cancel Trips

Key Takeaways

• U.S. plans a 25% tariff on Canadian imports announced February 1, 2025, causing mass U.S. trip cancellations by Canadians.
• Canadian tourist spending in the U.S. totaled $20.5 billion in 2024; a 10% drop risks $2.1 billion and 140,000 jobs.
• A 30-day tariff pause starting February 3, 2025, opens negotiations, but Canadian travelers are already shifting plans elsewhere.

The U.S. Travel Association has raised alarms about a potential economic crisis in the tourism sector following a sharp rise in vacation cancellations by Canadian tourists. This growing problem began after the United States announced its intention to impose a 25% tariff on Canadian imports, setting off a wave of protest-driven decisions by Canadian residents to skip U.S. trips.

On February 1, 2025, the U.S. government, led by the 47th President, revealed plans to impose the considerable tariff. The tariff would affect a wide range of Canadian goods and was intended as part of a broader trade policy shift. Canadian citizens responded almost immediately, with many canceling their trips to the United States. Travel agencies across Canada, including major operators like Flight Centre, reported cancellations across all types of travel plans, ranging from family vacations to once-in-a-lifetime trips worth over $10,000 CAD.

U.S. Travel Association Flags Tourism Impact as Canadians Cancel Trips

Canadian tourists are a cornerstone of the U.S. tourism industry. The numbers are hard to ignore: in 2024, a total of 20.4 million Canadians visited the United States, spending $20.5 billion during their travels. Now, this vital contribution to the U.S. economy is at risk, as countless Canadians decide to spend their travel dollars elsewhere. The U.S. Travel Association projects that even a modest 10% drop in visits could mean 2 million fewer travelers, a loss of $2.1 billion in spending, and the potential loss of 140,000 jobs in tourism-related industries like hospitality and retail.

Some states are bracing for major impacts. Florida and Texas, in particular, stand to lose significant revenue. Florida, a popular winter destination for Canadians, notes that 38% of its international visitors are from Canada. In Texas, Canadians rank as the second-largest group of foreign tourists, spending $403.3 million in 2023 alone. With such financial stakes, tourism boards in these states are undoubtedly keeping a watchful eye on further developments.

In an effort to temper the growing backlash, the U.S. government announced on February 3, 2025, that the proposed tariff would be paused for 30 days, opening the door for negotiations with Canada. However, reversing the damage may take more than just a pause. The shock of the announcement has already altered many Canadians’ travel plans. Flight Centre and other agencies report that Canadians are now booking trips to other destinations. Popular alternatives include Antigua, the Caribbean, and Portugal, as Canadians search for new vacation spots outside the United States.

It isn’t just vacationers feeling the effects. Canadian businesses are also reviewing their travel habits. A survey by Corporate Traveller found that 85% of small and medium-sized businesses in Canada plan to cut back on corporate visits to the U.S., and 40% have already made reductions. Additionally, 77% are exploring new foreign markets to do business. Such changes could reshape business relationships across North America, creating a ripple effect for industries dependent on regular cross-border cooperation.

The Canadian government has played a significant role in fueling this shift. At 9 p.m. on the same day as the tariff announcement, Prime Minister Justin Trudeau addressed Canadians in a televised speech, asking them to vacation within Canada and prioritize local goods. He urged his fellow citizens to support Canadian parks, historical sites, and tourist attractions, painting the situation as an opportunity to invest in Canada’s economy rather than in the United States’.

The Prime Minister’s message resonated with many Canadians. Kathy Rowe, a Newfoundland-based traveler, embodies that sentiment. Rowe and her husband had planned a road trip to Dallas, Texas, but chose to cancel even though their tickets were non-refundable. Rowe explained her decision, saying, “I can’t turn a blind eye anymore. We will travel in Canada instead.”

Complicating matters further, travel patterns haven’t just changed for land-based trips. Even cruise travel is being impacted. Some Canadian travelers are altering their plans to avoid itineraries involving U.S. ports. This redirection of Canadian travel spending has already generated increased interest in other international destinations, showing that the effects extend beyond just one country’s borders.

Not all tourism representatives in the U.S. are feeling pessimistic, though. Dana Young, the President and CEO of Visit Florida, shared her hopes that Canadians will continue traveling to the state despite political and economic tensions. She pointed to the enduring appeal of Florida as a destination and noted that past political events and travel boycotts hadn’t caused major declines in visitor numbers. Other officials are less confident, with the Association of Canadian Travel Agencies (ACTA) emphasizing the immense challenge this crisis poses for travel advisers and agencies in Canada.

The ACTA president, Wendy Paradis, has urged the Canadian government to provide financial assistance to the travel and tourism industries during this turbulent time. Meanwhile, the Canadian Association of Tour Operators (CATO) has strongly opposed the proposed tariffs, issuing a statement that described the tariffs as economically harmful. The group predicts job losses, higher prices for goods, and decreased consumer spending on both sides of the border, compounding the toll on businesses across various sectors.

The broader scope of a downturned Canadian tourism market extends beyond just the direct effects on travel. According to analysis shared by VisaVerge.com, Canada has long been the largest source of international tourists to the United States. A shift in this pattern could significantly alter revenue streams for iconic U.S. travel hotspots, including the ever-popular states of Florida, California, Nevada, New York, and Texas. Retail stores, hotels, and small businesses in these locations could face financial strain, and the effects may not be easily reversed.

For now, the 30-day pause on tariff implementation offers a brief chance for both governments to reevaluate the situation and reach a resolution. However, the long-term impact on U.S.-Canada travel dynamics is unclear. With Canadian citizens already showing a strong willingness to redirect their travel dollars and vacations, recovery in cross-border tourism might take time—even if diplomatic solutions are reached in the coming weeks.

In summary, the U.S. Travel Association’s grim outlook highlights how international politics can disrupt vital economic sectors. The growing cancellations of U.S. trips by Canadian tourists carry potential losses in the billions, particularly for states that rely on Canadian visitors. With Canadian travelers increasingly choosing alternative destinations and businesses cutting U.S.-based travel, the tourism industry finds itself in an uncertain period. As both nations work through the complexities of trade and travel politics, the ripple effects will continue shaping travel behaviors and economic forecasts in the months and possibly years ahead.

For official updates on the proposed tariffs and their potential effects, visit the United States Trade Representative’s page at ustr.gov.

Learn Today

Tariff → A government-imposed tax on imported goods, often used to influence trade policies or protect domestic industries.
Tourism sector → The industry focused on activities related to travel, hospitality, and services for travelers and vacationers.
Travel boycott → A deliberate choice by individuals or groups to avoid visiting a specific destination, often for political or social reasons.
Economic ripple effect → A chain reaction where one economic change impacts multiple industries or sectors over time.
Cross-border cooperation → Collaboration and interaction between neighboring countries in areas like trade, travel, or policy.

This Article in a Nutshell

Canadian tourists, vital to U.S. tourism, are canceling trips following the proposed 25% import tariff. With potential $2.1 billion losses and 140,000 jobs at risk, the impact ripples across states like Florida and Texas. Canadians now favor alternative destinations, reshaping travel patterns. Politics, it seems, has a high cost for tourism.
— By VisaVerge.com