Trade Tariffs: Prime Minister Holds Canada-U.S. Summit
TIAC is working every day to protect Canada’s tourism industry, ensuring it remains strong, competitive, and resilient. As challenges emerge, we are actively advocating for our sector, pushing for solutions, and securing the support tourism businesses need to thrive.
Last Friday, TIAC was invited to participate in the Prime Minister's Canada-U.S. Summit, where Amy Butcher, VP of Stakeholder Relations and Engagement, represented our industry alongside other national tourism organization leaders. This high-level summit brought together Canadian leaders across trade, business, industry, public policy, and organized labour to address Canada’s economic future and our relationship with our largest trading partner, longtime ally, and close friend, the United States.
The summit focused on strengthening Canada’s economy through enhanced coordination and cooperation between sectors, with discussions on improving internal trade, diversifying export markets, and boosting productivity. Our industry's inclusion in these critical discussions underscores tourism’s vital importance to Canada’s economy and global presence.
As we navigate this evolving landscape, it’s important to remember the deep ties between Canada and the U.S. We are each other’s largest visitor markets, with 70% of our international visitors coming from the U.S. These connections are built on years of friendship and shared experiences, and we must continue to foster them.
While we hope that recent developments do not deter Americans from visiting Canada, we encourage Canadians to embrace domestic travel, just as they did in the post-COVID recovery. Exploring our own backyard not only supports local economies but also strengthens our national tourism industry. Canada is open for business, and we are ready to welcome visitors from the U.S. and around the world with open arms. I've been speaking to media across the country to reinforce that message.
Tourism is more than an economic driver—it’s a powerful form of soft diplomacy that strengthens relationships and cultural ties. By working together, we can ensure that tourism remains a thriving force for connection, economic growth, and shared experiences.
A detailed briefing on the tariffs, potential impacts, and TIAC’s advocacy work can be found in the links below, including key facts and messages prepared by government officials.
US Tariffs on Canada:
The 25% tariff on Canadian goods—excluding energy products, which face a 10% tariff—has been temporarily paused for 30 days. This delay follows a February 1st executive order from President Trump and is tied to commitments from the Canadian government, including a $200 million.
Retaliatory Tariffs from Canada:
Initial Tariffs: Canada will impose tariffs on $30 billion worth of US goods, targeting consumer items like food, beverages, and other products. These tariffs apply to online imports and personal goods exceeding exemption limits.
Future Measures: A second wave of tariffs, targeting $125 billion in goods, is being prepared, with a 21-day consultation period following the release of the list.
Potential Impact on Travel:
US visitors account for over 70% of international tourists to Canada. A 10% reduction in travel could result in a loss of 1.5 million US visitors and 2 million fewer Canadians visiting the US.
The trade conflict’s impact is expected to be widespread, though region-specific effects are difficult to assess at this stage.
Anecdotal evidence suggests the potential for negative sentiment for cross-border travel.
Government Support and Relief:
Tariff Revenue: The Canadian government has not clarified how tariff revenue will be used, but potential remission is under discussion.
Business Support: Talks are ongoing between the Department of Finance and financial institutions to support businesses facing liquidity and credit challenges.
TIAC’s Advocacy and Actions:
TIAC is advocating for measures tailored to the tourism industry and maintaining open communication to identify impacts and offer solutions.
TIAC is advocating for its members at several tables, including the Canada-US Forum led by the Department of Finance.
There may be a federal election soon, with ongoing discussions about an aid package using funds from the Fall Economic Statement.
TIAC will discuss trade impacts during its regional roundtable series from March to June.
TIAC will host a bi-weekly call with members to share updates and hear directly from you.
TIAC is working on a new narrative for tourism messaging.
Destination Canada continues strategic marketing efforts in the US to encourage US travelers to visit Canada. There is consensus from provincial marketing agencies and DMOs to continue efforts into the US for both leisure and business.
Facts and Data—U.S. Partners.pdf
Impact of Trump Tariffs on Tourism Sector by The Conference Board of Canada.pdf