Canadians pull back on U.S. trips, threatening to widen travel deficit

Canadians are skipping trips to the U.S. and visitors from other countries could soon follow threatening to deepen the United States’ $50 billion travel deficit.

Experts say they’re pulling back for a variety of reasons, ranging from an unfavorable currency exchange rate to the U.S. political climate given President Donald Trump‘s trade policies and his public statements on annexing Canada, as well as high-profile detainments of people who already had visas to be in the U.S., long wait visa times and other policies that have added to tensions with longtime close allies.

Reached for comment Friday, a White House spokesperson said by email that “everybody wants to come to President Trump’s America.”

Canadians “will no longer have to endure the inconveniences of international travel when Canada becomes our 51st state” and that “Europeans are eager to enjoy the Golden Age of America if they so choose to,” the spokesperson said.

In response to President Trump’s tariff plans at the time, former Canadian Prime Minister Justin Trudeau last month urged Canadians to “choose Canada” and suggested “changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer.”

The cross-border travel trends and Trump administration’s policies are worrying some in the United States’ travel industry, which draws in more than $1 trillion in direct spending a year.

The U.S. Travel Association said in a statement to CNBC that there is a “a question of America’s welcomeness, a slowing U.S. economy and recent safety concerns.

“These challenges are real and demand decisive action,” the organization, whose members include large hotel groups, airlines and other major travel companies, said, adding that is “actively working with the White House and Congress to advance policies that drive economic expansion and keep the U.S. competitive on the global stage.”

There are billions of dollars on the line. People from the United States already travel abroad and spend more in other countries than the U.S. brings in from foreign travelers.

Last year, the United States’ travel deficit was more than $51 billion, meaning Americans spent that much more abroad than foreigners visiting the U.S. spent, stripping out spending for medical and educational purposes, which still showed a deficit, according to Commerce Department data.

The U.S. brought in more than 72 million visitors last year, still below pre-Covid levels, according to a report from Jefferies. Visitors from Canada were the largest group, accounting for 28%, followed by Mexico at 23%, the bank said in a note this month.

Travel and tourism of inbound visitors are counted as U.S. exports, and they accounted for about 8% of U.S….