Impact of New U.S. Travel Policies on Canadian Travelers and Bilateral Relations

Photo by: Amar Preciado

Recent policy changes by the United States are impacting nations across the globe. But this impact can be significantly seen in Canadian travelers. This leads to concerns about tourism, trade, and the overall state of the U.S.-Canada relationship.

Keep reading to learn about the new regulations, their underlying motives and strategies, and how they will potentially affect tourism, trade, and diplomatic relations between the two nations. 

Overview of New U.S. Travel Regulations

In March 2025, the U.S. administration introduced a policy requiring Canadian visitors intending to stay in the country for more than 30 days to register with U.S. immigration. This measure aims to strengthen border security and improve compliance with existing immigration laws. To register, the candidate has to simply submit their personal details to the Department of Homeland Security (DHS) before arrival. If one fails to do so, fines could go up to $5,000 or lead to imprisonment for up to six months.

Rationale Behind the Policy Changes

The U.S. government claims that the new registration policy is important to ensure that foreigners follow their terms of stay. This will eventually strengthen national security and immigration control. 

While the policy is positioned as a measure to upgrade the existing laws, it is being perceived as part of a bigger strategy to address concerns about immigration reinforcement. This viewpoint is a result of the recent OnTrail Visa statements on U.S.-Canada relations, increased tariffs on Canadian products, and political rhetoric and actions. 

Implementation Timeline and Procedures

The new registration policy is set to be implemented from April 11, 2025. Canadians planning to stay in the U.S. for more than 30 days will have to register with the DHS before their arrival. This policy doesn’t apply to Canadian non-immigrant visitors. However, failing to register could lead to huge penalties. ​

Photo by: Matthew Turner

Impact on Tourism

The new mandatory registration policy has already shown changes in travel behaviors. In February 2025, new bookings from Canada to the U.S. fell down by 20%. This is in comparison to the same period in the last year. The change in booking patterns is also linked to the broader tensions in the current political climate. ​

This downfall in Canadian tourism is expected to have visible economic consequences. The U.S. travel industry also predicts potential losses, with reports suggesting that a 10% reduction in Canadian visits could result in around 2 million fewer trips. This will lead to a loss of almost 14,000 jobs. 

Tension in Trade Relations

These policy changes are happening under intense trade tensions between the two nations. In March 2025, the U.S. imposed a 50% tariff on Canadian steel and aluminum imports, mentioning national security concerns. Many politicians are looking at this as a strong political move. These tariffs are creating a highly uncertain trade climate for Canada and its businessmen.

Political Responses and Future Situations

Responding to the U.S. policy changes, the Canadian government has expressed serious concerns. Prime Minister Justin Trudeau recently called for a special Cabinet committee to discuss the potential impacts. Immigration enforcement and the treatment of Canadian citizens were the focus of this discussion. The committee is now instructed to prepare for various situations, including a possible influx of individuals seeking to enter Canada in response to U.S. policies. 

The public in Canada is also concerned about the same. A recent survey showed that 48% of Canadian travelers are less likely to visit the U.S. this year compared to the previous year. Also, only 10% of the people have expressed increased intent to travel south. This shift in travel behavior brings out the broader consequences of current U.S. policies on bilateral relations and economic exchanges. ​

Summing Up

The recent U.S. travel and immigration policy changes show a shift with far-reaching implications for tourism, trade, and diplomatic relations between the United States and Canada. 

While the two nations are navigating these developments, it is crucial to monitor the evolving landscape simultaneously. We also need to assess its long-term impacts on cross-border interactions. Continued dialogue and cooperation will be essential to address the challenges and opportunities arising from these policy changes.