TORONTO — For decades Canadian travel advisors with U.S.-bound clients have been fielding questions about border requirements, low exchange rates and the like.
But trade wars and escalating tensions between the two countries? Those are new ones.
The new tariffs, scheduled to take effect Feb. 4, will hit many Canadian businesses hard, and all Canadians will ultimately feel the pinch in their wallets.
Discretionary purchases like travel are the first to go when consumers are watching their spending, and for many it will be a double whammy on top of existing concerns about the higher cost of consumer goods.
Not only that, but the tensions surrounding the punitive new tariff policy have some Canadians rethinking U.S. travel plans.
Anita Emilio, VP & GM at Envoyage Canada, tells Travelweek that in her view, “while recent headlines about Canada and the U.S. have drawn attention, Canadians’ connection to cross-border travel runs far deeper than politics. It’s built on shared experiences, trust, and a long-standing appreciation for the diversity of destinations the U.S. offers.”
That said, she added, “with the Canadian dollar at a four-year low, travel habits are evolving. Canadians are carefully rethinking where – and how – they spend their travel budgets. Affordable, culturally rich destinations like Japan, South Korea, Portugal, and Southeast Asia are capturing attention, while domestic travel is enjoying a resurgence as Canadians rediscover the wealth of experiences available closer to home.”
Emilio notes that these trends “point to a broader shift: travellers are prioritizing value and being more intentional about their plans. Whether embarking on a global journey or exploring local treasures, working with knowledgeable travel advisors ensures thoughtful, personalized experiences that make every dollar count.”
With trade war updates leading the consumer newscasts nonstop, travel advisors are telling Travelweek what they’re hearing from clients.
Here’s a sampling ….
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“We have had a lot of clients tell us that they are going to put off their summer bookings until they see the effect of the tariffs. Some have said that they are going to wait and travel next year while others want to see what is going to happen. Everyone is frightened about what this will do to our economy and discretionary purchases, such as vacations, will definitely be taking a hit. There is definitely a very strong feeling not to support U.S. travel. We have made Canadian options to U.S. destinations, some examples are: Calgary instead of Denver for skiing; New Brunswick instead of Maine; Puerto Vallarta instead of Miami; Toronto instead of Chicago or New York.
“We have had to pivot quickly once Trump was elected. We knew something was going to happen but we didn’t know to this extent. I’ve heard recently that agents are going to try to switch up clients that are asking for U.S. carriers and hotels to Canadian or non-American ones. I’m up for that as well.”
Robert Townshend
Total Advantage Travel & Tours
Toronto
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“In the two weeks since Trump’s inauguration – though it somehow feels like two years – stress levels have certainly risen. Canada’s 14 groundhogs remain divided on whether we’ll see an early spring, but Wiarton Willie in Ontario is predicting an early one – and I like that idea.
“Trade wars and tariffs seem like a losing game for everyone, and economic uncertainty can make some hesitant to book travel. But in my experience, those who truly value experiences over things continue to prioritize their bucket list trips.
“As a luxury travel advisor, I help my clients live a lush life through travel – because no matter the headlines, travel is always the best therapy. Beyond just an escape, travel is a form of self-care and wellness, offering the chance to reset, recharge, and gain perspective in a way few other experiences can.
“Personally, I sailed to Antarctica with Lindblad before Christmas, and I’m about to explore Canada’s Arctic on Ponant’s luxury icebreaker before heading to Europe for two river cruises with Viking and Avalon Waterways. These journeys aren’t just about checking destinations off a list – they’re about immersing in experiences that nourish the mind, body and soul.
“If anything, now is the time to take that dream trip – before life, politics, or another market swing gets in the way. And if Wiarton Willie is right, maybe an early spring is just the sign travellers need to start planning!”
Sheila Gallant-Halloran
Lush Life Travel
Ottawa
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“While it is still too early to tell, it will most likely affect people’s travel plans. With the drop in the loonie, added tariffs and most travel priced in USD, Canadians will definitely feel the impact. The price may not necessarily rise in USD but it will cost more in Canadian dollars.
“I suspect many will avoid travel to the U.S. specifically. I am in Florida and already this year the number of people from Canada is down from previous years. The Florida realtors are seeing a rise in Canadians selling their homes here – that was before the tariffs.
“We have been one of the best neighbours they could ask for. We helped them during 9/11, Hurricane Katrina, the fires, floods, etc. Canada immediately sends in troops, fire and other emergency workers to help, and many Canadians freely went to the U.S. and sent goods to help. I think many Canadians are angry with the way the U.S. is treating us.”
Sandra McLeod
RedDoorTravel
LaSalle, ON