US-Canada Trade Dispute Raises Tariffs but Keeps Borders Open for Travelers
Despite escalating tariffs between the United States and Canada, border crossings remain open and travel costs are unlikely to change significantly.
The United States announced a plan to raise tariffs on Canadian automobiles and parts to 50% beginning Jan. 1, following the implementation of 50% tariffs on about 5% of other Canadian goods such as dairy, wine and hockey sticks on Aug. 22. Canadian Prime Minister Justin Trudeau said Canada will introduce retaliatory tariffs in September, but officials say the dispute does not affect border access for tourists.
The U.S. State Department confirmed that the borders stay open and visitors from Canada do not need a visa for stays under 180 days. U.S. citizens may enter Canada with a passport, passport card or NEXUS card, which speeds processing for pre-screened travelers, according to Customs and Border Protection.
"There's no direct causation I can see caused by this trade negotiation between the U.S. and Canada, because it's mainly about the manufacturing goods and the agricultural goods," said Jungho Suh, an assistant professor of management at George Washington University. He added that the tariff changes are unlikely to raise travel costs, noting that many companies have already prepared for macro-economic shifts since the post-pandemic period.
Travel data show a decline in cross-border tourism. The U.S. recorded 6.5 million Canadian visitor arrivals through May, a 9.3% drop from the previous year, and total Canadian arrivals in 2025 fell 20.9% compared with 2024, according to the Department of Commerce’s National Travel and Tourism Office. Outbound U.S. trips to Canada also fell 4.7% in 2025, marking the first decline since 2020.
Overall, while the trade dispute has heightened political tensions, experts say it is unlikely to directly affect most travelers’ expenses or border procedures.