The US travel industry and major airlines like United, American, and Delta are struggling as Canadian trips to the US have dropped 20%, driven by rising tariffs, anti-Canada rhetoric from President Trump, and economic uncertainty. Road travel has fallen 23%, and air travel has also declined, as frustrated Canadians boycott U.S. destinations, leading to billions in potential losses. Airlines are adjusting capacity, tourism businesses near the border are seeing fewer visitors, and the U.S. Travel Association warns that job losses could escalate. With Trump’s tariffs sparking outrage and new travel restrictions adding barriers, the outlook for U.S. tourism remains uncertain.

Trump’s Tariffs and Anti-Canada Rhetoric Spark Outrage

At the heart of the downturn is U.S. President Donald Trump’s trade policies and hostile rhetoric toward Canada. His administration recently raised tariffs on Canadian steel and aluminum to 50%, reigniting trade tensions and fueling anti-American sentiment among Canadians. Trump has also suggested that Canada should be annexed by the U.S., a statement that has further alienated Canadian travelers.

As a result, many Canadians are choosing alternative destinations. Flight Centre, Canada’s largest travel agency, reported a 40% drop in U.S. leisure bookings in February, with a 20% cancellation rate on pre-booked U.S. trips over the past three months.

The backlash is evident in other ways too. The American national anthem has been booed at hockey games, and some Canadian stores have removed U.S. products from their shelves. The sentiment is also affecting business relations, with U.S. tourism councils struggling to attract Canadian visitors.

“We’ve had to adjust our messaging,” said Corey Fram, director of the 1000 Islands International Tourism Council, which promotes a scenic cross-border region between New York and Ontario. “We’ve been very careful not to highlight U.S. attractions to Canadian audiences and vice versa because it has drawn a lot of negative sentiment.”

Airlines and Hotels Take a Hit

The drop in Canadian travelers is already causing serious financial losses for the U.S. travel and hospitality industry.

• United Airlines (UAL.O) CEO Scott Kirby confirmed that the company adjusted its capacity after a sharp decline in Canadian passenger arrivals.
• Delta Airlines has slashed its first-quarter profit forecast by half, citing a slowdown in corporate and leisure travel.
• American Airlines and Southwest Airlines are also seeing declining bookings, with analysts warning of further economic turbulence ahead.
• Saturday night hotel bookings in border cities are dropping, with Niagara Falls, New York, down 8.1% and Bellingham, Washington, down 10.8%, according to CoStar Analytics.

Billions of Dollars and Thousands of Jobs at Risk

The U.S. Travel Association (USTA) has warned that a 10% drop in Canadian travelers could result in $2.1 billion in lost spending and put 140,000 hospitality jobs at risk. Given the 20% decline, the projected losses could exceed $4 billion in 2025.

Despite earlier optimism that Canadian visits to the U.S. would grow to 21.5 million in 2025, experts now say that such an increase is “almost impossible” under current conditions.

More Than Just Canada: Global Travel to the U.S. in Decline

The impact isn’t limited to Canada. According to Forward Keys, a travel analytics firm:

• Bookings from Denmark have fallen 27% year-over-year.
• German visitors have dropped by 15%.
• Overall European demand is down 1%, but Canada’s geographic proximity makes its decline more significant.

Adding to the concerns, the Trump administration recently announced that all foreign visitors staying in the U.S. for more than 30 days must register and submit fingerprints starting April 11. Canadians, who can typically stay for six months without a visa, are not exempt from this new requirement, further discouraging travel.

Economic Uncertainty and Tariffs Shake Consumer Confidence

Beyond tourism, wider economic concerns are rattling the airline industry. Tariffs, inflation, and economic uncertainty are making both corporate and leisure travelers think twice before booking trips.

• Delta Airlines revised its profit estimate down from $1 per share to just 30-50 cents per share, reflecting weaker demand.
• The S&P 500 airline index has plunged 22% in the past month, much worse than the 7.5% drop in the broader S&P 500 index.
• United Airlines stocks fell 11%, American Airlines dropped 9%, and Delta lost 14% in value following the latest travel data release.

TSA Union Under Attack: Potential for Worsening Travel Conditions

Further complicating the U.S. travel industry’s struggles, the Department of Homeland Security (DHS) announced on Friday that it is terminating the collective bargaining agreement for Transportation Security Administration (TSA) frontline employees.

The move is seen as a major effort by the Trump administration to dismantle union protections for TSA workers, which could lead to staffing shortages, labor disputes, and deteriorating airport security conditions.

The TSA union has condemned the decision as an “unprovoked attack” and vowed to fight back. If the union is weakened or dissolved, travelers may face longer security lines, increased flight delays, and worsening airport experiences, further discouraging tourism.

Canadian trips to the U.S. have dropped 20%, hitting airlines like United, American, and Delta as road and air travel decline. With Trump’s tariffs sparking outrage and billions at stake, the U.S. travel industry faces mounting losses and uncertainty.

Outlook: Can the U.S. Win Back Canadian Travelers?

Industry experts warn that restoring Canadian confidence will take time. The USTA, National Travel and Tourism Office, and Brand USA have yet to update their forecasts in response to the decline.

The question remains: Will U.S. tourism officials and airlines be able to recover from the current crisis, or will continued tensions and economic uncertainty push even more travelers away?

For now, the outlook remains turbulent.

The post Why US Travel and Airlines Like United, American and Delta Are Struggling as Canadian Trips Drop Twenty Percent—Road and Air Travel Decline, Trump’s Tariffs Sparks Outrage, and Billions at Stake appeared first on Travel And Tour World.