Global News reported new Statistics Canada figures on July 22 showing that Canadian resident spending in the United States fell 21.5%—or CAD 3.3 billion—in 2025, the steepest year-over-year decline on record. The data precede early 2026 trends that indicate the slump is continuing amid lingering trade tensions and new U.S. tariff threats. Canadians redirected leisure travel to overseas destinations, which rose 12.2%, while domestic travel increased modestly. Airlines have reacted by cancelling several trans-border routes and adding capacity to Europe, Mexico and the Caribbean. For corporate mobility teams, the shift means fewer same-day cross-border sales trips and a growing preference for virtual meetings or consolidated multi-city itineraries to justify the cost of U.S. travel. Companies with significant U.S. client bases should expect longer planning cycles as employees combine several visits into one trip to maximise value. Conversely, the drop has opened capacity at Canadian airports, easing congestion for other international flights. Travel managers may find competitive fares on Europe-bound routes as carriers redeploy aircraft. Industry analysts warn that if the trend endures, Canada–U.S. air-service agreements and airport fee structures could come under review, potentially affecting slot allocations for business-class heavy routes such as Toronto–New York and Vancouver–San Francisco.
Source: Global News
