US Economy Braces For More Than $6 Billion Impact Amid Canadian Tourism Boycott: Reports - United Airlines Holdings (NASDAQ:UAL), Delta Air Lines (NYSE:DAL)

The number of Canadian tourists visiting the U.S. has taken a significant hit, potentially resulting in a $6 billion economic loss for the year, as per reports.

What Happened: The number of Canadians traveling to the U.S. has seen a notable decline. According to Statistics Canada, road trips—which make up the bulk of Canadian visits—dropped by 32% in March compared to the same month in 2024. Air travel also fell, with a 13.5% decrease reported.

The U.S. Travel Association (USTA) had earlier cautioned that even a 10% drop in Canadian tourism could lead to a $2.1 billion loss and put 140,000 jobs in jeopardy in the hospitality and associated sectors. If the decline of over 30% in Canadian visitors persists, it could result in over $6 billion in losses to the U.S. economy in 2025, Forbes reported.

This downturn marks the third straight month of significant declines in Canadian car travel to the U.S., following a 23% year-on-year decline in car travel and a 2.4% reduction in air travel in February. This trend started after President Donald Trump announced tariffs and referred to Canada as “the 51st state”.

Why It Matters: The decline in Canadian tourism was anticipated to have a significant impact on U.S. airlines, hotels, and theme parks. Goldman Sachs analyst Lizzie Dove had warned that a 10% decline could result in 2 million fewer visits and $2.1 billion in lost spending to the U.S.

As a result of this, United Airlines UAL and Delta Air Lines DAL which have significant partnerships with Air Canada and WestJet, respectively, are cutting down on Canada-U.S. flights while also reducing capacity in this route, as per Visual Approach Analytics.

Moreover, the ‘Buy Canadian‘ movement, which started in response to President Trump’s tariff threats, has been gaining momentum since early 2025. This movement, which encourages Canadians to buy from domestic brands rather than American brands, has begun to impact many U.S. retailers.

According to Reuters, Canada imported $350 billion worth of U.S.-made goods in 2024, making it the United States’ top trading partner. If the boycotts persist, brands risk losing billions of dollars in sales this year.

The shares of United Airlines plunged more than 11% over the past month, while Delta Air Lines stock lost nearly 24% over the last six months, according to data from Benzinga Pro.