An Impending Blow to U.S. Industry

• The threat of U.S. tariffs has spurred Canadians to cancel or alter their travel plans to U.S. destinations, potentially affecting the U.S. travel industry.
• Social media posts reveal a surge in trip cancellations and Canadians’ shift towards domestic tourism.

The potential implications of the recently threatened U.S. tariffs have prompted a shift in Canadian travel behavior that could significantly impact the U.S. travel industry. After President Donald Trump announced the possibility of a 25% tariff on almost all products from Canada and Mexico, Canadian Prime Minister Justin Trudeau urged citizens to prioritize domestic tourism. This call to “choose Canada” was met with a vocal response from Canadians on social media, with many announcing the cancellation of U.S. travel plans in favor of local or alternative international destinations.

The effect of this shift is likely to be substantial, considering the historical contribution of Canadian tourists to the U.S. economy. In 2024, Canadians made 20.4 million visits to the U.S., generating $20.4 billion in revenue. The most popular U.S. destinations among Canadians have traditionally been Florida, California, Nevada, New York, and Texas. The decline in Canadian tourism could significantly impact these states’ economies, affecting sectors ranging from retail to transportation.

This change in travel behavior is already visible in the operations of the Flight Centre, Canada’s largest travel agency. The agency reported a surge in U.S. travel cancellations since the start of February, including high-value “bucket list and milestone experiences.” The long-term impact of these changes, however, remains to be seen.

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