Industry ‘cautiously optimistic’ as U.S. tariffs paused for 30 days
Canada’s travel and tourism industry breathed a sigh of relief yesterday afternoon as the U.S. agreed to a 30-day pause of the 25 per cent tariffs that were to be imposed on Canada on Feb. 4, 2025.
“We are pleased to see a temporary reprieve from these punishing tariffs, which would negatively impact economies on both sides of the border,” ACTA President Wendy Paradis told Travel Press Today. “We are cautiously optimistic with today’s [Feb. 3] outcome and will watch the situation closely on behalf of Canadian Travel Agencies and Travel Advisors. Over the next 30 days, ACTA will continue to participate in Government meeting and consultations regarding potential border and tariff measures.”
Chris Lynes, Managing Director for Flight Centre Travel Group, including global brands Flight Centre and Corporate Traveller, told TPT that: “The tariff reprieve signals a positive outcome ahead for Canada-U.S. relations, and a win for all travellers crossing the border while negotiations continue. Given the strong connection between our nations, we’re optimistic that the continued talks will reveal a resolution that bolsters trade and business opportunities from coast to coast.”
Impact on travel
Lynes referenced recent data from the company’s Corporate Traveller survey conducted by YouGov that “finds that 47 per cent of Canadian SMEs that travel for business expect minimal or no impact to their businesses as a result of tariffs, pointing to the entrenched relationship between countries that is expected to continue. While the 30-day hold offers Canadians some flexibility, our dedicated travel experts are available 24/7 to help travellers feel supported whether travelling domestically or internationally, including across the U.S.”
The pause in U.S. tariffs for 30 days, allowing Canada and the U.S. to work together on a plan, was announced by Prime Minister Justin Trudeau in a post on X.
“I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border,” the post reads.
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.”
This is a developing story. Stay tuned for more updates.
Tags: ACTA, Chris Lynes, Corporate Traveller, Flight Centre, Prime Minister Justin Trudeau, U.S. Tariffs, Wendy Paradis