Nation

Canadians Rethink US Travel Amid Trade War Tensions

2025-04-08

Author: Liam

As the realities of an escalating trade war set in, a significant shift in travel habits is emerging among Canadians. Increasingly, they are choosing to stay north of the border rather than heading south to the United States.

For many Canadians, the decision to avoid US travel was straightforward. Ted Zurakowski, a traveler at Diefenbaker Airport, stated, “Two trips planned, neither of them going to the States.” Similarly, Larisa Kalist echoed concerns, saying, “The trade war has definitely made me think twice about going down to the States.”

Interestingly, not all Canadians are shying away from the US entirely. Alvin Peters, another Diefenbaker Airport traveler, plans a trip to sell his property in Phoenix, emphasizing the unpredictability of the US political climate. “We don’t know what he’s going to wake up and say tomorrow. The market’s hot and the dollar is in the toilet, so it’s a good time to sell,” he remarked.

Industry insiders are noting a tangible impact from the trade tensions and currency fluctuations. Jamie Milton, president of Uniglobe Carefree Travel, observed a decline in travel to the US that began shortly after tariffs were announced in January. “Canadians are looking to book away from the U.S. for new trips, and as things escalated, we began to see more hesitation regarding already booked trips.”

A recent survey by EQ Bank revealed the extent of this changing mindset: 62% of respondents reported they would focus more on travel within Canada due to the weaker Canadian dollar (CAD) compared to the US dollar (USD). Veronica Chung, a senior account coordinator at EQ Bank, explained that Canadians are now prioritizing domestic travel.

This trend has prompted some airlines to adjust their schedules. Milton noted, “We are seeing airlines reduce flight frequencies, going from daily service to only three or four times a week on certain routes.” This response is aimed at meeting the changing demands of Canadian travelers who are increasingly opting for domestic vacations.

However, not every region is seeing a decline in US-bound travel. James Bogusz, president and CEO of the Regina Airport Authority, reported that early 2025 projections show increased demand for American flights at their airport. “We’re closely monitoring the situation because while we’re aware of softening demand, it hasn’t yet impacted our local numbers.”

Meanwhile, officials at Saskatoon's Diefenbaker Airport have also noticed that many travelers are expressing apprehensions around policy changes and foreign exchange rates. A spokesperson mentioned, “The recent escalation in trade tensions between Canada and the United States is expected to influence travel patterns between both countries.”

As conditions continue to evolve, Canadians find themselves weighing their travel options more carefully than ever, revealing deeper implications for airlines, airports, and the tourism industry as a whole. Stay tuned for what this trend means for summer travel plans—will domestic destinations benefit or will Americans find a way to appeal to their northern neighbors? Only time will tell!