It's hard to find two trade partners closer than the United States and Canada. They boast the longest unguarded border in the world, one that benefits both sides in a number of ways. The United States is also one of the most popular travel destinations for Canadian residents considering it's a neighbor with a lot of incredible destinations to explore. That is starting to change, thanks to a weak Canadian dollar and the threat of tariffs from the incoming American administration.
While there is some variation on a day to day basis, the current exchange rate as of writing is definitely not in Canada's favor. A Canadian dollar is worth $0.71 to an American dollar, meaning that Canadian travelers heading south are basically paying 30% more for everything. That equals drastically increased costs when it comes to travel, accommodations, food, and activities.
On top of that, the incoming administration in the United States has discussed the potential for tariffs as well as other economic changes. While those changes in discussion are not directly related to travel, they do have the effect of increasing the gap between the Canadian and American dollars. This means that US travel which is already unaffordable for most Canadians is only going to become more cost prohibitive, something that will impact the American economy.
Canadians spend billions of dollars a year on travel to the US and those number have already demonstrated a decline. The total spend between the first quarters of 2023 and 2024 showed a 5.9% decrease. That doesn't seem like a lot but it is when the conversation is about billions of dollars, it's huge. That decline is looking like it will increase in 2025 as more Canadians choose to spend their vacation dollars at home in locations across the country and explore their own backyard.