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By Ian Gustafson

Canada U.S. tensions

U.S. tariffs could impact Canadians desires to travel south

Feb 12, 2025 | 1:49 PM

The jury is still out on whether the potential U.S. tariffs on Canada will impact Canadians willingness to travel south of the border.

According to co-owner of CanWest Travel in Red Deer, Joanne Walokoff, clients who are cancelling their trips to the U.S. are doing so because of the dollar.

“Tariffs are a hot topic for sure and do come up in conversation so this may be influencing travel decisions in the background,” she said.

“Others are just concerned about what will happen next, uncertainty of a new leader, and some big, bold announcements coming from the White House. Fortunately, we are a full service agency so there are lots of places beyond the U.S. to travel to.”

U.S. President Donald Trump has proposed 25 per cent tariffs on Canadian exports and a 10 per cent tariff on Canadian energy. He also recently added a 25 per cent tariff on all aluminum and steel products for all countries.

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The good news is all of these tariffs have been put on hold until at least March while Canada and the U.S. work out a deal.

However, the move by the U.S. has left a sour taste in the mouths of Canadians.

At least that’s what was found according to a recent Corporate Traveller Canada survey by YouGov that found 85 per cent of small and medium-sized enterprises (SME) would reduce cross border travel for business if tariffs are imposed.

In addition, 48 per cent of Canadian SME workers believe US-Canada trade tensions will cause disruptions to business operations over the next 12 months, while 47 per cent expect minimal or no impact.

Among Canadian SMEs with US operations or clients, 44 per cent report increasing cross-border travel due to trade policy uncertainty, while 40 per cent have reduced such travel. Meanwhile, 85 per cent of SMEs anticipate reducing cross-border travel to the U.S., including 59 per cent expecting significant or moderate disruptions.

“The conversations around potential US tariffs and trade restrictions often focus on rising costs, but their impact on business relationships and cross-border travel is just as critical,” says Chris Lynes, Managing Director of Flight Centre Travel Group, including global travel management company, Corporate Traveller.

“Our survey shows Canadian SMEs are not only cutting back on US travel but also exploring new markets. While these shifts could reshape the landscape of North American business short term, the Canada-US partnership remains strong and will endure.”