The trade war is changing travel plans. As tensions simmer, Canadians’ trips to the U.S. dropped substantially in early 2025 compared to last year.

But, vacations weren’t cancelled altogether—Canadians are just going somewhere else. And, this trend of travelling less to the U.S. isn't unique to Canada – arrivals to the U.S. from other countries have also slumped this year.

In this episode of the 10-Minute Take, RBC economists Claire Fan and Carrie Freestone explore:

• How travel patterns have changed in 2025 to reflect broader trade tensions.

• Whether tourism within Canada will rise to offset international declines.

• How these trends may impact the services sector’s outlook and trade deficits.