TORONTO — CATO and Sunwing Vacations have both issued statements amid the paused but still concerning threat of a possible trade war between Canada and the United States.

Although President Trump agreed on Monday to a 30-day pause on his tariff threats against Mexico and Canada, uncertainty still hangs over the Canadian economy, with economists on both sides of the border warning of raised prices should a continental trade war occur.

Trump on Saturday signed an order to impose 25% across-the-board tariffs on Mexican and Canadian imports, with a lower 10% tariff on Canadian energy, effective Feb. 4. Less than 24 hours later, Ottawa announced its own 25% tariffs on $30 billion in U.S. goods, also starting on Feb. 4. On Monday, following two phone calls with Prime Minister Justin Trudeau, Trump said the tariffs would be off the table for 30 days to see if the two countries could reach a “final economic deal.”

In his own social media post, Trudeau outlined his government’s $1.3 billion plan to address Trump’s concerns about border security. He also said nearly 10,000 front-line personnel “are and will” be protecting Canada’s border, and announced $200 million in new initiatives to address fentanyl trafficking, including a “fentanyl czar.”

But the tariffs delay is not a long-term comfort for many in Canada’s labour, business and travel communities. Following ACTA’s response yesterday “strongly condemning” Trump’s tariffs, CATO (Canadian Association of Tour Operators) released its own statement today, saying that 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.”

CATO members employ over 20,000 full-time and thousands of part-time and contract employees in Canada, generating more than $1 billion in labour income and over $8 billion in economic output. Of this, $340 million was directed to the U.S. This, says CATO’s Executive Director, Jean Hébert, is a small fraction of the total spending by Canadians travelling to the U.S., with over 6.5 million Canadians visiting the country in Q2 2024 alone.

“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,” says Hébert.

“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 is calling on both the Canadian and U.S. governments to work towards an immediate end to these tariffs and to continue fostering free trade between the two countries.

“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,” adds Hébert.

SUNWING’S STATEMENT

Sunwing issued its own statement on Feb. 3 amid tariff tensions, highlighting its proud Canadian roots and doubling down on its commitment to Canadian travel agents. The statement in its entirety reads:

“Sunwing is a Canadian founded and operated vacation provider offering the widest assortment of all-inclusive vacation packages to dozens of sun destinations in Mexico, the Caribbean and Central America. To note, we do not have an active US program.

“As we look ahead, our focus remains on providing more Canadians with more opportunities to visit sun destinations that offer incredible value year over year and investing in key sun markets we serve, including Mexico.

“We also continue to invest in the Canadian travel advisor community, working closely with approximately 20,000 Canadian travel advisors from coast to coast to bring unparalleled vacation experiences to our mutual customers.”

With file from The Canadian Press