Canadian travellers shift away from US as geopolitical tensions reshape travel patterns
New government data suggests political tensions are driving a sustained change in destination choices, with implications for the travel insurance sector
Canadian travellers spent CA$3.3 billion less on trips to the US in 2025 than the previous year, according to new government data that points to a significant shift in travel behaviour following the return of President Trump to the White House.
Figures published by Statistics Canada showed spending on travel to the US fell to CA$18.8 billion in 2025 from C$22.1 billion in 2024.
At the same time, spending on overseas travel outside the US increased by CA$3.6 billion to CA$22.8 billion, suggesting Canadians substituted US holidays with trips to other international destinations rather than reducing travel overall.
The agency said travel sentiment changed sharply following the change in the US administration in early 2025 and the implementation of ‘America First’ policies, with Canadian residents increasingly choosing destinations elsewhere in Europe and Asia.
Visits to Europe rose by almost 14% compared with 2024, while travel to Asia increased by nearly 17%, reflecting a broader diversification of outbound travel.
Cross-border travel to the US also declined markedly. Return trips to Canada from the US by both road and air fell by around one-quarter in 2025, with July recording the steepest monthly decline at approximately one-third below 2024 levels.
Statistics Canada described the reduction in US-bound travel as the deepest and most sustained since comparable records began in 1972, outside the immediate aftermath of the September 11 terrorist attacks.
The trend has continued into 2026, with return travel from the US remaining broadly in line with the reduced levels recorded during the final quarter of last year, indicating what the agency described as a persistent shift in Canadian travel preferences.
For the travel insurance sector, the findings highlight how geopolitical developments are increasingly influencing destination choice alongside more traditional drivers such as exchange rates, airline capacity, and economic conditions.
A sustained rebalancing of Canadian outbound travel towards Europe and Asia could alter regional demand for travel insurance products, medical assistance services and international provider networks.
ITIJ recently explored this trend in more detail in As world travel patterns change, insurers adapt.