Canadian cross-border travel hits pandemic lows as costs and concerns rise

Tariffs take hold

It has been a stressful time for our two nations, as hefty tariffs hit consumers in the wake of the President Donald Trump returning to the White House. Canadians have taken notice, and have taken action. The Elbows Up and Buy Canadian movements have inspired the nation's citizens to choose alternative countries to visit and from which to purchase. And the movement is only beginning and is picking up momentum.

Barbara Barrett, executive director of the Frontier Duty Free Association, described the sharp drop in cross-border travel as "catastrophic," telling CBC News that sales at duty-free shops along the Canadian border have plummeted by about 80% compared to pre-pandemic levels. She said the industry has never fully recovered since COVID-19, and recent disruptions have made matters worse.

"Without exaggeration, it’s a crisis,” Barrett stated, adding that the situation feels "pandemic-level" as border traffic remains significantly lower than before.

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Reddit weighs in

Canadians and Americans alike have taken to social media to voice their thoughts on both the tariffs as well as the impact of the Buy Canadian movement. While some feel it's a waste of time, just a statement and performative, others agree the collective voice and action of Canadians will send a loud and expensive message across the border.

Reddit user shpydar is solidly in the latter camp, and offers some stats to prove it.

"Now let's put this in perspective on how this part of our resistance to US tariffs and threat to annexation will be devastating for the US economy," he said on Reddit.

"Canadians are not only the single largest group of international travelers to the US making a whopping 31% of all international travelers to the US in 2023, we also spend the most money on tourism in the US accounting for 24.1% of all tourism dollars earned in the US in 2023.

If the US continues to apply tariffs and threaten our sovereignty, a lot of US citizens will lose their jobs, especially if this continues into summer.

Elbows up! It's working."

Redditor peeinian agrees. "It’s also not worth shopping there. The prices are the same, if not more than in Canada, then add 40% exchange, 25% tariff and 6% GST and you’re paying almost double," he said.

"CBSA has been pulling almost everyone in that is over their exemption limit to pay tariffs and duty since the trade war started. For years they wouldn’t bother if you kept it under $100/person for a day trip."

Though sentiment is largely positive about the news of the decline, where there was disappoinment in the numbers, it wasn't because people thought it was a waste of time. In fact, where there was disappointment, it was the opposite.

"That number should be much higher. It's only a 13% decline from a year ago," according to HelloKleo.

What's next for Canada and the US?

Canada and the US are more than just neighbours — they’re each other’s biggest economic lifelines. In 2022 alone, they traded nearly a trillion dollars in goods and services, and Canada remains the top customer for most US states. But that relationship is hitting some serious turbulence.

Earlier this year, President Donald Trump slapped new tariffs on Canadian imports, citing border security concerns. Canada fired back with its own countermeasures, setting the stage for a fresh trade war. Experts warn this could send shockwaves through both economies, pushing up prices, slowing growth and disrupting industries that rely on smooth cross-border trade.

The US economy is already expected to grow slower than originally predicted, with inflation likely to rise. Canada, heavily dependent on US trade, won’t escape the impact either. Businesses on both sides of the border are bracing for a rough ride, with some American firms already feeling the pinch.

As tensions escalate, the big question is whether cooler heads will prevail — or if this economic standoff will only get worse.

Sources

1. US Customs and Border Protection: Traveler and Conveyance Statistics

2. CBC News: Cross-border trips to the U.S. reach COVID lows with nearly 500,000 fewer travellers in February (March 18, 2025)

3. Reddit: r/ontario — Cross-border trips to the U.S. reach COVID lows with nearly 500,000 fewer travellers in February

4. Statistics Canada: Canada and the United States: The numbers on a unique relationship (March 21, 2023)