When President Donald Trump returned to power to serve his second term in January, one of the main agenda items from his manifesto was to overhaul tariff policies and levy higher rates on some countries that were benefiting from America. On April 2, 2025, Trump unveiled an extensive list of tariffs towards various countries across the globe.
From taxes starting at 10% to taxes as high as 50%, the tax bracket differed for all. Canada was not included in the tariff list, which created immense controversy, but Canada is already dealing with an additional 25% tariff on all its imports except oil and energy, which were capped at 10%.
By July, the U.S. raised tariffs on Canada to 35% but Canada immediately retaliated with reciprocal tariffs, which include 25% tariffs on U.S. cars & trucks alongside other goods. A few provinces have also banned the sale of American liquor. As tariff tensions remain relevant as we almost reach the end of the year, many Canadians are still refusing to travel to the United States.
According to CBC News, a new report from the U.S. Travel Association reveals a 3.2 percent drop in international tourism spending in 2025, a loss of $5.7 billion compared to 2024. The decrease is allegedly a result of Trump’s tariff choices, initially calling Canada a 51st state and constantly mocking the government in his classic style.
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Therefore, even though Canadians are historically the largest group of international visitors to the U.S, making up to 28 percent of the country’s 72.4 million foreign tourists in 2024, the number fell to 24%
While the impact of the change might not be felt immediately, according to Usha Haley, a management professor at Wichita State University, it will affect jobs and be a direct threat to the American tourism culture. Since the industry is a fast-paced and highly demanding skill-based one, fewer tourists will automatically mean fewer room occupancies, fewer jobs, reduced tax revenues, and potential strain on municipal budgets.
As the holiday season begins, more Canadians are vacationing in Asian countries or Europe, but fewer people are coming to America. The Travel Association now expects a 2025 travel deficit of nearly $70 billion U.S.
During a joint press conference with Prime Minister Mark Carney on October 7, President Trump was asked about the downturn in Canadian tourism. He responded by saying that Americans “don’t want to buy cars made in Canada” but predicted relations would improve because there is “great love” between the two nations.
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Consequently, the Travel Association claims that the number of tourists is expected to rise in 2026, with the FIFA World Cup and celebrations for America’s 250th anniversary. Yet, those disappointed with Donald Trump’s tariff decisions might not show up.
As per the outlet, Toronto snowbird Rena Hans, who owns a Florida condo, says she won’t go back as long as Trump is in office. “Why would I spend money in a country whose president talks about annexing mine and has imposed massive trade barriers?”
She is instead travelling to Costa Rica, Turks and Caicos, and plans to spend early next year in China and Taiwan. She believes that there are several other countries that one can visit and enjoy their holidays. In addition, a new Angus Reid survey suggests many Canadians feel the same way: 70 percent of the 1,607 respondents said they are uncomfortable travelling to the U.S. this winter.
YIKES 🤯 President Trump just announced ALL TRADE TALKS TERMINATED WITH CANADA. As I predicted and posted would happen
BUCKLE UP Canada pic.twitter.com/PK2jFzRkIE
— Melissa 🇨🇦 (@MelissaLMRogers) October 24, 2025
Apart from tariffs, there are also new border security rules for Canadians and other foreign nationals, which include tighter security measures at entry and a mandatory fee. The Department of Homeland Security says the rule aligns with broader efforts to enhance U.S. security.
In October, Trump also banned all trade negotiations with Canada after becoming furious over a $75 million ad campaign launched by the Ontario government earlier this month. The advert, which aired on major U.S. networks, featured audio of former President Ronald Reagan warning about the negative side of tariffs.
