Cross-Border Travel Between Canada and U.S. Plummets in March 2025

Cross-border travel between Canada and the U.S. took a major hit in March 2025, with nearly 900,000 fewer Canadians making the trip compared to last year. According to new U.S. Customs and Border Protection data, this 17% drop ranks among the steepest year-over-year declines outside of the pandemic.

*Photo via Christinne Muschi/The Canadian Press*

Spring break typically drives a spike in U.S.-bound trips, but this year’s downturn signals deeper issues—political tensions, shifting travel sentiment, and shrinking demand from Canadian tourists.

Land Crossings See Sharpest Decline

March is typically a peak month for southbound travel, thanks to spring break vacations. However, only 4.1 million travellers crossed the northern U.S. border this year—down from 5 million in March 2024.

Even more surprising: March 2022, which was still under pandemic-era restrictions, saw more Canadian travellers than this year.

Land crossings have taken the biggest hit. According to Barbara Barrett, executive director of the Frontier Duty Free Association, “Our stores are calling this a crisis.” Most duty-free stores on the Canadian side rely 100% on outbound travel. With sales down 40–50%, some fear permanent closures.

Blame Falls on Politics, Not Weather

Many are pointing fingers at Donald Trump’s ongoing trade war and Canada-bashing rhetoric. Border-town mayors and tourism executives say this has discouraged Canadians from visiting—even during peak vacation months.

Palm Springs Mayor Ron deHarte said Canadians are the backbone of the city’s economy. Last year, nearly 10 times more Canadians visited the city than there are residents. “This is not how we treat friends,” deHarte said. In response, he launched a “Palm Springs Loves Canada” campaign to rebuild trust.

California Launches a Counter-Campaign

To counteract the political chill, California Governor Gavin Newsom is now fronting a campaign to welcome Canadians. In a new video ad, he urges Canadians not to let D.C. drama spoil their travel plans.

Visit California CEO Caroline Beteta echoed that sentiment. “We can’t control what’s said 2,000 miles away. But Canadians are valued here,” she told CBC. With travel figures down and airlines reducing routes, Beteta admits the impact has been “devastating.”

Air Travel and Vegas Trips Also Take a Hit

The decline isn’t limited to road trips. Air travel from Canada to the U.S. also fell, dropping about 4% compared to last March. Major carriers have reported sharp dips, especially on routes to Las Vegas:

WestJet: 17% drop in passengers
Flair Airlines: 55% drop
Air Canada: 5% drop

Summer airline bookings are also down 70%, according to travel data provider OAG.

Border Businesses Face an Uncertain Future

The ripple effect is hitting more than just tourism boards. Duty-free shops, often family-owned, are among the hardest hit. Due to Canadian regulations, these businesses can only sell to outbound travellers, meaning they can’t rely on locals to make up for the loss.

With American visitors to Canada also declining, some stores face the risk of closure. “We were just starting to recover,” said Barrett. “If this continues, we’ll lose a third of our stores.”

What’s Next?

Unless border tensions ease and travel confidence returns, the months ahead could be even tougher for businesses and cities on both sides of the border. For now, states like California are pushing to rekindle the long-standing Canada-U.S. travel bond—one banner, campaign, and kind gesture at a time.

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