The trade measures that the U.S. has applied against Canada, and other countries, has had a serious impact on sectors such as steel, autos etc. However, there is one sector where U.S. policy has demonstrably shot their economy in the foot… and that is the travel sector.
Two recent stories describe what is happening.
Why Canada is winning the travel trade war with the U.S.
International tourism spending has declined in the U.S., while Canada has enjoyed a tourism boom
Sophia Harris · CBC News · Posted: Nov 21, 2025
Canada is still in the throes of a trade war with the United States. Trade uncertainty and U.S.-imposed tariffs on certain Canadian goods like aluminum and steel continue to threaten the Canadian economy.
However, there’s one sector where Canada is emerging as the clear winner: tourism.
U.S. President Donald Trump’s divisive politics, tariffs and heightened border security have helped drive a decline in international tourism spending in the U.S. Meanwhile, polls and industry experts suggest a surge in Canadian patriotism and perceptions of Canada as a safe and friendly destination have helped drive a record-breaking summer for tourism in the country.
See Why Canada is winning the travel trade war with the United States for the rest of the story
and then
Canadians still aren’t travelling south and it’s costing the U.S. billions
Christopher Reynolds, The Canadian Press, Published: November 13, 2025
Canadians continued to steer clear of the United States in October, with the month marking yet another major drop in year-over-year visitors.
The number of Canadian residents who returned by car from the U.S. fell to 1.4 million in October, a 30.5-per-cent drop from the same period in 2024, according to preliminary data from Statistics Canada.
The decrease marked the 10th straight month of lower volumes, beginning the month after U.S. President Donald Trump was elected.
The number of Canadians returning home from south of the border by air sank to 437,300, down 24 per cent.
Growing aversion to America can be chalked up to political tensions over Trump’s tariffs and 51st-state rhetoric, fear of potential treatment at the border as well as exchange rates – the loonie is worth about 71 cents US.
See Canadians still aren’t travelling south and it’s costing the U.S. billions for the rest of the story
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