Canada and Mexico to Face Significant Changes in Cross-Border Travel to US Due to New Taxes, Fees and More: Everything You Need To Know

Published on December 21, 2025

Canada and Mexico will face significant changes to cross-border travel to the U.S. due to new taxes, fees, and policies. These adjustments will impact both travel costs and trade dynamics, complicating the experience. Key changes include a substantial increase in the I-94 Land Border Fee, the introduction of a new Visa Integrity Fee, and higher ESTA fees for certain travelers. Additionally, retaliatory tariffs and trade duties will impact goods crossing the border, raising costs for both businesses and individuals. In this article, we’ll cover everything you need to know about these changes and how they will reshape the cross-border travel experience for Canadians and Mexicans.

Impact of New Taxes and Fees on Cross-Border Travel

The updated taxes and fees reflect a combination of both higher immigration-related costs and trade-related duties. The most significant change is the increase in the I-94 Land Border Fee, which now costs $30, representing a substantial jump from the previous $6. Additionally, the rise in ESTA fees for travelers from Visa Waiver countries (including certain Canadian and Mexican citizens) further adds to the cost of travel.

The imposition of a Visa Integrity Fee of $250 may impact some travelers, particularly those from Mexico and Canadian permanent residents who need a visa to enter the U.S. However, Canadian citizens are generally exempt from this fee. On the trade front, the 25% Canadian surtax on U.S. goods and the U.S. tariffs on goods from Canada and Mexico continue to affect the pricing of consumer goods and trade dynamics between the countries.

These changes are likely to increase the overall cost of cross-border travel and goods, further complicating travel for many individuals and businesses.

Impact of Travel Taxes on Canadian Travelers

As of late 2025, Canadian travelers face increased costs due to new U.S. travel fees. The I-94 Land Border Fee has risen from $6 to $30 for those staying over 30 days or traveling more than 25 miles from the U.S. border. Additionally, Canadian permanent residents from Visa Waiver countries now pay an increased ESTA fee, rising from $21 to $40. Canada’s retaliatory 25% surtax on U.S. goods like steel, aluminum, and auto parts may also lead to higher prices for cross-border shoppers. Increased border scrutiny and electronic device searches by U.S. Customs may add further delays and frustration for Canadian travelers.

Impact of Travel Taxes on Mexican Travelers

Mexican travelers to the U.S. are now facing higher I-94 Land Border Fees, which have increased from $6 to $30 for those staying over 30 days or traveling more than 25 miles from the border. Mexican citizens requiring a visa for U.S. entry will also face a $250 Visa Integrity Fee. On the trade side, 25% U.S. tariffs on certain Mexican goods could raise the cost of purchases made in the U.S. for Mexican shoppers. Increased border scrutiny means Mexican travelers may face longer wait times and more frequent electronic device searches, further complicating the travel experience.

New Border Taxes and Fees for Travelers

Below is a summary of the new taxes, fees, and charges affecting travelers crossing the U.S.-Canada-Mexico borders as of 2025. These changes are driven by the ongoing trade tensions and new immigration policies, which have impacted the cost of crossing borders for both goods and individuals.

Canada and Mexico will face significant changes to cross-border travel to the U.S. due to new taxes, fees, and policies. These adjustments will impact both travel costs and trade dynamics, complicating the experience.

Conclusion

The impact of new taxes and fees on cross-border travel is undeniable, as higher immigration-related costs and trade-related duties continue to shape the travel experience. The increased I-94 Land Border Fee, higher ESTA fees, and new Visa Integrity Fee all contribute to rising costs for travelers, particularly those from Canada and Mexico. Furthermore, the trade-related taxes, including the Canadian surtax and U.S. tariffs, add another layer of complexity to cross-border travel and trade dynamics. These changes are likely to create additional challenges for individuals and businesses, making travel more expensive and time-consuming.