Canadian cancel US travel and throws punch to the travel industry

According to a U.S. Travel Association (USTA), a 10% drop in Canadian travelers could cut U.S. spending by $2.1 billion. Thousands of jobs would also be lost, and America’s retail and hospitality industries would be negatively impacted.

Canadians are America’s largest source of international visitors, with 20.4 million visits in 2024, “generating $20.5 billion in spending.” The hotspot states Canadians visit the most are Florida, California, Nevada, and New York (including Buffalo and Texas).

Additionally, Canada’s largest travel agency, Flight Centre, said a surge of customers are canceling their U.S. vacations, opting to rebook other destinations. Those rebookings reportedly include “bucket-list and milestone experiences valued at over $10,000.”

As of January 31, 2025, the Canadian government lists the U.S. as a place where its citizens should “take normal security precautions” regarding travel.

However, in a February 2 speech, Prime Minister Justin Trudeau urged Canadians to reconsider their spending and travel plans. The leader’s words to the country’s citizens were within his broader response to U.S. President Donald Trump‘s 25% tariffs on Canadian goods. In his response, Trudeau also announced a 25% tariff on American goods entering Canada.

“Now is also the time to choose Canada,” Trudeau said. “There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking Canadian-made products. It might mean opting for Canadian rye over Kentucky bourbon, or foregoing Florida orange juice altogether.

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.”