Mar 24, 2025
As the ongoing trade war between the U.S. and Canada continues, innkeepers and campground owners near the U.S.-Canadian border have told NBC5 that they are worried about spring bookings. They say they are seeing a noticeable decrease in traffic coming from Canada.
The Lane family runs Snow Farm Vineyard in the Champlain Islands, and they are unsure if they will be able to fill their rooms in the spring.
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"We're hearing stories that Canadians are canceling their vacations and their trips to the U.S.," David Lane told NBC5.
According to the U.S. Customs and Border Protection (CBP), nearly 500,000 fewer travelers crossed from Canada to the U.S. in February from the same time last year. NBC citing Canada’s statistical agency reported on a 23% drop in Canadian car trips to the U.S. and a 2.4% dip in residents’ round-trip air travel last month. Flight Centre Canada said leisure travel bookings to the U.S. plunged 40% year over year.
Why are Canadians canceling US travel plans?
Following rising tensions between the U.S. and Canada, many Canadians are boycotting American brands and travel altogether.
It's not just the rising costs and a weakened Canadian dollar against its U.S. counterpart — it's a sense of patriotism. Many Canadians are outraged by President Trump's repeated remarks suggesting that Canada should become the 51st state, a statement Prime Minister Mark Carney called "disrespectful."
“I’ve decided that I will no longer be traveling to the U.S. unless it’s absolutely necessary to go,” Harold White, who lives in Quebec, told The New York Times. “It pains me to think that I’m not going to Maine or to Cape Cod or even to New York City for a vacation in the near term … I feel like Canadians have been slapped across the face by Trump," he added.
This backlash is expected to impact the U.S. travel sector since Canada is the biggest source of international visitors to the country.
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How to save money on travel
While Canadians may be rethinking their trips south of the border, Americans traveling domestically or abroad may also feel the pinch. Steven A. Carvell, a professor of finance at the S.C. Johnson College of Business at Cornell University, told USA Today "it's unlikely that tariffs will have a noticeable, immediate impact on hotel room prices or airfares, but a trade war could affect the supply chain and cause longer-term impacts on the travel industry."
He added, “The longer tariffs last, the more likely we’ll see air travel impacted in the form of higher costs for Boeing and airlines, fewer overall flights, and higher fares.”
Here are a few ways to keep your travel costs in check.
Book early to lock in lower rates
With tariffs creating unpredictability in pricing, booking flights and accommodations in advance can help travelers avoid price hikes. Airlines and hotels often adjust their rates in response to increased costs, so locking in reservations early can be a smart financial move.
Consider alternative destinations
If you typically vacation in areas impacted by Canadian tourism — like Florida, California or New England — you may find rates go down due to reduced demand. Vacation rental property owners in Florida have reported multiple cancellations from Canadian guests due to the tariff battle. If prices are higher in your usual destinations, consider exploring off-the-beaten-path locations or choosing domestic trips to less touristy areas for better deals.
Shop smarter for travel essentials
With tariffs increasing the cost of imported goods, travelers can save money by being strategic about purchases of items like luggage, clothing, and electronics. Consider shopping during sales, buying second-hand, or borrowing items from friends.
Look for discounts or use rewards
Frequent flyer miles, hotel loyalty programs, and credit card travel rewards can go a long way in reducing expenses. If you haven’t already, consider signing up for a travel rewards credit card or checking for promotional offers that can help cut costs on flights, lodging, and rental cars.
Get creative to save on transportation costs
Rising gas prices may make transportation more expensive. To minimize expenses, consider using public transportation, booking flights through major hub airports, or comparing fares with online tools. If you're driving, apps like GasBuddy can help you find the cheapest fuel prices along your route.
While rising tariffs create uncertainty, planning ahead and making strategic choices can keep costs under control. With a bit of flexibility and resourcefulness, you can still enjoy a great vacation — without breaking the bank.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
