Industry reacts to U.S. tariffs as Canada responds

Buckle up.

With the announcement that the Trump administration is moving ahead with 25 per cent tariffs on goods from Canada and a tariff of 10 per cent on Canadian energy that are slated to take effect on Feb. 4, 2025, it’s clear that Canadians are in for a rocky ride in 2025.

And the executive order imposing those tariffs also indicates that any retaliation could lead to those tariffs being increased.

The travel industry reacts

In response to Travel Press Today’s (TPT) request for comment on the U.S. tariffs on Canada, ACTA president, Wendy Paradis came right to the point: “These tariffs are a direct threat to Canadian businesses and consumers. While travel agencies and travel advisors may not be directly targeted, the economic ripple effects will be unavoidable — higher costs, weaker consumer confidence, and reduced travel spending.”

And Paradis continued: “The United States and Canada share one of the strongest trade relationships in the world. Punitive tariffs on a close ally like Canada are not just bad economics — they undermine decades of cooperation and mutual prosperity.”

ACTA’s boss added: “We urge the U.S. government to immediately reverse these tariffs. If they persist, the Canadian government must step up with measures to support affected industries, including travel agencies and travel advisors, who will feel the impact of a weaker economy.”

Michael Johnson, President, Ensemble told TPT: “The travel industry depends on stability, and these tariffs introduce economic uncertainty that could impact Canadian travellers’ confidence and spending power.”

Johnson continued: “We support ACTA’s firm stance against these tariffs, as disruptions to the Canada-U.S. travel corridor affect both travellers and the advisors who serve them.”

And Johnson made it clear: “Our priority remains supporting our members as they navigate this uncertainty by providing strategic guidance, alternative options, and a strong network they can rely upon.”

Christine James, CTM, Vice President, Canada for Travel Leaders Network, told TPT that she recently attended an ACTA TALA meeting and “their projection [was] that unlike the pandemic — when the travel industry was one of the first and hardest hit industries — we will not likely see an immediate impact of the imposed US Tariffs, it will be more of a delayed effect.”

James added that: “Based on the feedback from our membership, they are not seeing any significant cancellations on their US bookings.  Of course, we will be monitoring developments as our members respond to their clients’ potential concerns.”

Flemming Friisdahl, Founder, The Travel Agent Next Door (TTAND) observed: “The tariff war that has started is a sad thing considering we are neighbours. Selling air only, hotel only or car only is not a huge part of our business for consumers going to the USA.”

But Friisdahl also told TPT that: “I do believe fewer Canadians will travel to the USA because they are upset with what the USA is doing to Canada. But the Canadian dollar against the USD dollar is what I believe will hurt more, because it effects all travellers from Canada, generally to any place in the world.”

And he added: “I also believe the many surveys that show the number one thing Canadians do not want give up on is travel and if they have to borrow the money they will go on vacation.”

Canada responds

Canada responded shortly after the U.S. announced its tariffs, with Prime Minister Justin Trudeau telling Canadians that the government would be imposing a 25 per cent tariff on $155 billion of U.S. goods.

Initially, those tariffs would be applied to $30 billion of U.S. goods effective Feb. 4, with the next phase of the Canadian tariffs on $125 billion of US goods coming into effect 21 days later.

In announcing Canada’s response, the Prime Minister Trudeau told Canadians that: “Now is the time to choose Canada. There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking Canadian made products. It might mean opting for Canadian rye over Kentucky bourbon, or foregoing Florida orange juice altogether.”

And he added: “It might mean changing your summer vacation plans to stay here in Canada and explore the many national provincial parks, historical sites and tourist destinations our great country has to offer.”

The Prime Minister’s comments on Feb.1, echo those of B.C. Premier David Eby who said a week earlier that: “It feels very strange to say, but I really do think that for Canadians right now, when you’re planning your March Break vacations, when you’re planning your summer vacations, if the tariff threat is realized – the deliberate economic attack on families in our province, in our country by the President of the United States – that we should really be thinking carefully about spending our money in that country.”

CLICK HERE for more on Canada’s response to the U.S. Tariffs

CLICK HERE for the list of U.S. products that will be subject to tariffs

 

Photo courtesy of Corporate Traveller Canada 

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