The ongoing trade tensions between U.S. President Donald Trump and Canada are having a tangible impact on tourism, with recent data showing a significant decline in cross-border travel.

In February 2024, U.S. Customs and Border Protection reported that 2,696,512 travelers crossed the border from Canada by car. By February 2025, that number had dropped by nearly half a million to 2,223,408, marking the lowest traffic since the pandemic began.

This downturn is being felt north of the border as well, where a surge in “trade war tourism” has been observed. Canadians and Americans alike are flocking to British Columbia’s capital, Victoria, with U.S. travelers seeking to spend their strong dollar in the region, while Canadians continue their regular visits.

However, the latest data from Flight Centre Travel Group Canada reveals that leisure travel to U.S. cities has dropped by 40 percent in February compared to the same month last year. The report also highlights a concerning trend, with one in five customers canceling their trips to the United States over the past three months.

Kenmore Air, a popular service provider for cross-border travel, has seen stable early bookings. Yet, with the unfavorable exchange rate exacerbated by Trump’s trade policies, owner Gudgel is bracing for a potential summer slowdown in Canadian visitors. Gudgel has even approached Washington Governor Bob Ferguson with a proposal for a Pacific Northwest travel and tourism agreement to counter the economic strain.

Despite the downturn in U.S.-Canada tourism, Victoria’s tourism industry is remaining optimistic, emphasizing their commitment to being a welcoming destination, regardless of the political climate south of the border.

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