CATO condemns unwarranted tariffs on Canadian goods, says travel industry will suffer
The Canadian Association of Tour Operators (CATO) has released a statement that strongly condemns the recent tariffs imposed by the Trump administration.
“These tariffs will cause significant harm to our economy, leading to job losses, increased costs for goods, and reduced discretionary spending for consumers on both sides of the border. This situation will negatively impact the tourism and travel industry,” the statement reads.
The Association continued: “The longstanding reciprocity between the U.S. and Canada is at risk. These tariffs are not only economically detrimental but also have far-reaching consequences that could disrupt the strong ties between our nations. Our relationship has been built on decades of collaboration and respect, allowing our economies to thrive and our citizens to experience the richness of each other’s cultures.”
Economic impact
CATO members currently employ more than 20,000 full-time and thousands of part-time and contract employees in Canada. Collectively, they generated more than $1 billion in labor income and over $8 billion in economic output, according to the latest third-party economic impact analysis in 2023. Of this, $340 million was directed to the U.S.
“This is a small fraction of the total spending by Canadians traveling to the U.S., with over 6.5 million Canadians visiting the US in the second quarter of 2024 alone,” CATO said.
“The tourism industry, a vital economic driver for both Canada and the United States, is particularly vulnerable to the consequences of these tariffs. Increased costs are likely to be passed on to consumers, reducing their purchasing power and making travel much less affordable for Canadians and Americans alike.”
CATO continued: “With travel being a significant contributor to economic growth, a decline in consumer spending in this area will have ripple effects throughout our industry and beyond. One of the most alarming consequences of these tariffs is the potential for widespread job losses and creating a vicious cycle that is difficult to reverse.
CATO firmly condemns these tariffs as unwarranted and malicious. We urge both the Canadian and US governments to work towards an immediate end to these tariffs and to continue fostering freer trade between our countries and peoples. We urge decision-makers to prioritize collaboration over division. It is crucial that we work together to protect our economies, our consumers, and the invaluable connections that have made Canada and the United States neighbours and friends.”