Canadians cut US travel spending by $3.3bn in 2025 as cross-border demand cools
Statistics Canada data shows a sustained drop in Canadian travel spending to the US in 2025 (-$3.3bn, -15%) and continued weakness into 2026, reflecting a policy-driven demand shock. The shift redirects spending to Europe and Asia, pressuring US tourism and related service exports while modestly tightening US-Canada cross-border economic linkages. FX implications are indirect, via relative growth and services-balance effects.
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Canadian residents spent $18.8bn travelling to the US in 2025, down $3.3bn from 2024, a 15% decline and the second-largest annual drop since records began in 1972. Over the same period, spending on overseas travel excluding the US rose by $3.6bn to $22.8bn, while visits to Europe and Asia increased by 14% and 17%. The figures indicate that policy shifts after Donald Trump returned to office weighed on cross-border travel demand, adding pressure to US services exports and related macro indicators.