• Collapse of Canadian Tourism: A sharp and significant decline in Canadian travelers (air, road, and future bookings) to the U.S. in early 2025 is causing a major tourism crisis.
• Key Drivers of Decline: The downturn is fueled by new U.S. tariffs, strained political relations, heightened and unpredictable border scrutiny (including device searches and fears of detainment), and broader Canadian disapproval of U.S. policies and political climate.
• Severe Economic Impact: The U.S. is losing millions in tourism revenue, with airlines cutting routes, bookings plummeting, and tourism-dependent economies in states like California and Minnesota, as well as border communities, being severely affected.
• Need for Policy and Diplomatic Solutions: Promotional campaigns have proven ineffective, and experts believe that a recovery in Canadian tourism will depend on significant diplomatic efforts, the establishment of consistent and reassuring border policies, and a change in the political discourse.

The United States is confronting a severe tourism crisis in early 2025, marked by a dramatic collapse in travel from Canada. This downturn is attributed to a confluence of factors, including new U.S. tariffs, heightened political tensions, stringent border scrutiny, and a general unease among Canadians regarding current U.S. policies and the political climate, reportedly under a second Trump administration. Fears of detainment, personal device inspections at ports of entry, and even deportation have led to a significant drop in Canadian visitors, who are historically the largest group of international travelers to the U.S.

The economic consequences are substantial, with millions of dollars in tourism revenue already lost. Airlines like Air Canada and WestJet have significantly reduced or cut routes to U.S. destinations, particularly impacting corridors like Vancouver to California. Travel agencies, especially in British Columbia, reported that by February 2025, nearly 30% of existing U.S. bookings were withdrawn, and future reservations had plummeted by almost 90%. Road travel has also sharply declined, with border states like Minnesota, North Dakota, and Michigan experiencing reductions of one-third to over 40% in land crossings. U.S. Customs and Border Protection data for March 2025 showed a 22% year-on-year drop in land entries from Canada.

California is particularly vulnerable, with Visit California projecting a 9% overall drop in international arrivals in 2025, with Canada and Mexico being the most significant losses. The decline affects hotel occupancy, restaurant revenues, local events, and municipal budgets reliant on tourism taxes. Even business travel between regions like British Columbia and California has shrunk due to concerns over unpredictable border experiences. While major upcoming sporting events like the 2026 FIFA World Cup and the 2028 Los Angeles Olympics offer some hope for recovery, experts suggest that restoring Canadian trust will require sustained diplomatic efforts, consistent border policies, and a toning down of divisive political rhetoric.