The Impact of United States Politics, Why Canada is Now Gaining Tourists While the United States Faces Decline

Published on November 21, 2025

While there is a trade war going on between Canada and the United States, one region is benefitting from the discord. Canada. More international visitors, especially Canadians and tourists from other countries, have chosen to visit Canada. Currently, there are trade uncertainties and tariffs on the U.S. side of the border. Politics and border trade tariffs have also impacted international spending tourism to the U. S. which has slowed the economy, especially the U.S economy. Canada is Safe, Friendly, and Accessible while the U.S. is a trade and war zone. Canada is a record-breaking travel tourism destination, especially for international travelers and those from the U.S.

The U.S. Declines as a Tourist Destination: The Impact of Trump’s Policies

When U.S. President Donald Trump took office, he introduced a series of policies that have not only reshaped the trade landscape but have also impacted tourism. His divisive politics, tariffs on Canadian goods, and controversial stance on immigration have led to heightened border security and a growing sense of unease among international travelers. The result has been a significant decline in tourism spending in the U.S., especially from its neighbor, Canada.

Between February and October 2025, the number of Canadians traveling to the U.S. declined by 21% for air travel and an even steeper 33.5% for land travel. This marks a sharp contrast to previous years, where Canadian tourists were a crucial part of the U.S. tourism economy. Canadians have historically represented the largest group of international visitors to the U.S., making up 28% of the 72.4 million visitors in 2024.

As a result, the U.S. Travel Association now forecasts a 3.2% decline in international tourism spending in 2025, projecting a loss of $5.7 billion USD. According to industry experts, the reduction in Canadian visitors is a key factor behind this decline. As Laurie Trautman, director of the Border Policy Research Institute, notes, border communities in the U.S. have been hit hard by the lack of Canadian tourism, with many businesses struggling to recover after the COVID-19 pandemic.

Canada Sees a Surge in Domestic and International Tourism

In contrast to the U.S., Canada has seen a significant boost in tourism in 2025. According to Destination Canada, the country’s tourism revenue for the summer season (May to August) increased by an impressive $3.3 billion, marking a six percent year-over-year growth. Much of this increase can be attributed to domestic tourism, with Canadians opting to travel within their own country instead of heading south.

The surge in Canadian tourism spending is part of a larger trend of increasing patriotism, with many citizens choosing to support their local economy amid the uncertainty with the U.S. political climate. Additionally, with travel to the U.S. becoming more difficult due to heightened border security, many Canadians are looking to stay closer to home for vacations.

At the same time, overseas tourism to Canada has risen, with a 2.4% increase in visitors between May and August 2025. This surge in international tourism is partly driven by Canada’s growing reputation as a welcoming and safe destination, especially compared to the U.S., where political turmoil and stricter immigration policies have made some visitors hesitant to travel.

Why More International Travelers Are Choosing Canada

One of the driving factors behind Canada’s tourism boom is the growing perception of the U.S. as a less desirable destination, particularly in light of its current political climate. An Angus Reid poll conducted in late October 2025 found that 77% of Canadians view the U.S. less favorably as a travel destination than in previous years, with many citing concerns over safety and political instability. This shift in perception is especially noticeable among overseas travelers, as surveys show that many Europeans are now more likely to visit Canada due to the current political climate in the U.S.

A study of 1,560 people from the U.K., France, and Germany found that more than 50% of respondents said they were more likely to visit Canada in the current environment. Over 90% of those polled viewed Canada as a safe and friendly country to visit. These findings suggest that Canada is benefiting from a shift in global travel preferences, with many international tourists opting for a more stable and welcoming destination in the face of political uncertainty in the U.S.

U.S. Tourism Loses $5.7 Billion as Canadians Stay Home

As Canadians opt to stay home or explore other domestic destinations, the U.S. has lost a significant amount of tourism dollars. Statistics show that between February and October 2025, the number of Canadian tourists visiting the U.S. dropped sharply. This decline has had a substantial impact on the U.S. tourism economy, particularly in border communities that rely heavily on Canadian visitors.

Meanwhile, in Canada, the growth in tourism has helped offset the loss of U.S. travelers. While U.S. tourism revenue dipped slightly, the rise in overseas tourism spending more than made up for the shortfall. Overseas tourists, particularly from Europe, have been flocking to Canada’s major cities and natural attractions, contributing to the country’s record-breaking tourism figures.

Concerns Over U.S. Visa Fees and Travel Restrictions

Looking ahead to 2026, U.S. tourism officials are hopeful that international tourism will rebound, partly due to events like the FIFA World Cup and the country’s 250th anniversary celebrations. However, there are concerns that the Trump administration’s recent decision to implement a new $250 “visa integrity fee” for non-immigrant visa applicants could further discourage international visitors, particularly from countries like Mexico and Canada. While Canadian citizens are exempt from this fee, permanent residents of Canada, as well as Mexican nationals, will be affected.

This new fee has raised concerns among U.S. tourism stakeholders, with the U.S. Travel Association warning that such charges could further erode the country’s appeal as a travel destination. The introduction of additional costs, coupled with concerns about the U.S. travel experience and high prices, may further deter potential visitors and give Canada an even greater competitive edge in attracting international tourists.

Canada’s Growing Appeal in a Changing Global Landscape

Due to the recent travel trade war between Canada and the United States, Canada has been able to use this unfavorable situation to their advantage. While the United States suffers from a poor Canadian clientele and a worsening perception from the world, Canada has risen to the top as one of the most desired travel destinations. Due to Canada’s safety, hospitality, and overall friendliness, Canada will continue to benefit as a travel hotspot.

With visitors from other countries, who as of late, would traditionally visit the United States, Canada has a huge opportunity in their hands. The Canadian travel sector, with the help of Canadian citizens and the hunger of international visitors, has several tourism prospects. Because of this trend, Canada will continue to vastly surpass the United States in tourism for a long, foreseeable future.