Agents expect more Canadians will avoid the U.S., opting for domestic and international alternatives
A trio of travel agents are predicting that the current Canada-U.S. trade war will put a further damper on travel to the United States, which has already struggled because of recurring tensions between the two countries for more than a year now.
News reports of steep reciprocal tariffs have dominated the news in this country in recent weeks and that will lead to some Canadians shunning U.S. vacations, with travel to our southern neighbour already having fallen, the agents warn.
“We have seen travel to the USA significantly down for the past 18 months due to ongoing trade disputes,” says Jamie Milton of Uniglobe Carefree Travel Group in Saskatoon. “The past couple of months had a sense that we had bottomed out and some travel was slowly starting to return to the USA. What remains to be seen is if the newest round of trade wars will cause this hesitant return to drop off again. This past year, we have witnessed that travel to the US is very volatile and deepened disputes tend to cause a decrease. My guess is that we will see a bit of a decrease again, but overall US travel has remained very low, which means any further decrease would be fairly minimal to overall travel numbers.”
Ongoing tensions had led to a drop in both air and car travel across the border last year and this year, but there were recent indications that the decrease might have bottomed out and visitations were rising again. Cities like Vegas, with some properties offering On Par offerings, even saw a significant amount of Canadians. But Delores Fredriksen of CAA Travel in Saint John says her bookings for United States visits remain low.
“From my perspective as a travel advisor, the trade tensions between Canada and the United States have absolutely made travel to the U.S. a tougher sell,” Frederiksen reports. “Prior to early 2025, travel to the United States was one of the most consistent parts of my business. Whether it was city getaways, cruises departing from U.S. ports, theme park vacations, or winter escapes to Florida and Arizona, I was booking U.S. travel multiple times each week. Since February 2025, however, demand has dropped significantly, and I can count my U.S. bookings on two hands.”
Interestingly, Fredriksen says that the hesitation isn’t being driven by cost, availability, or the destinations themselves.
“Instead, it’s being driven by traveller sentiment. Many Canadians are being much more intentional about where they spend their tourism dollars and are actively choosing alternatives to the United States,” she shares. “Rather than heading south, many of my clients are choosing to explore Canada, from the Rocky Mountains and Atlantic Canada to destinations they may never have previously considered. Others are looking farther afield, with growing interest in Europe and Asia. Travellers who may once have automatically booked a U.S. vacation are now considering a Rhine River cruise, a Mediterranean itinerary, or a cultural journey through Japan, Thailand, or Vietnam.”
Notably, Fredriksen points out that the desire to travel hasn’t diminished.
“If anything, demand remains incredibly strong. What has changed is where Canadians are choosing to spend their travel dollars. Many clients have shared that they see supporting Canadian businesses and exploring other international destinations as a positive way to respond to trade tensions. There is a growing sense that Canadians can demonstrate their resilience by investing in their own economy, supporting Canadian tourism operators, and diversifying their travel choices rather than relying on the U.S. market.”
Frederiksen says many travellers now view their vacation decisions not just as a holiday but an opportunity to support Canada, strengthen Canadian businesses, and “showcase the independence and adaptability that Canadians are known for. Whether that ultimately influences the broader trade landscape remains to be seen, but it is certainly influencing travel decisions today.
“Based on the conversations I’m having, I don’t expect the U.S. to regain its status as the automatic first choice for many Canadian travellers anytime soon. Canadians remain eager to explore the world, but increasingly they are choosing to do so at home or in destinations beyond the United States.”
Tasha Walsh of Destinations Await in Calgary is another who believes that trade war and uncertainty will have an impact on where Canadians choose to spend their vacation dollars.
“Rather than cancelling or postponing trips I have found that people are shifting them to destinations other than the United States,” Walsh reports.
