Opinion: Canada Gets Tariff Reprieve, But Where Does the Travel Industry Go from Here?

Canadians aren’t known for the kind of overt patriotism often displayed by our American neighbours. But don’t let that fool you – we are a proudly sovereign nation with a history of playing an outsized role in global conflicts in defence of our friends, allies and democratic values. 

Historically, we have no greater friend and ally than the United States of America. But the relationship has been sorely tested in recent days. 

Yesterday, in a last-minute, 30-day reprieve, President Donald J. Trump backed down from imposing 25% tariffs on most Canadian goods that would have taken effect today. 

In return, the U.S. ‘won’ things that had mostly already been promised – focused on the areas of increased border vigilance around drugs and illegal immigrants. (Things the vast majority of Canadians want anyway.)

But the president’s words and actions – most alarmingly around the concept of Canada becoming the 51^ststate – have galvanized a Canadian population that has grown increasingly divided over recent years. 

The absolute disdain he has shown for America’s largest trading partner and ally in hard times came as a shock to many Canadians, despite the lived experience of his tumultuous first term. 

All of a sudden, Canadians of all walks of life are united in defence of a society that has often defined itself through our differences from our superpower neighbour, while at the same time being a staunch friend and ally. 

At major sports events in Canada, if an anthem singer struggles with The Star-Spangled Banner, Canadian crowds typically raise their voices in support – and yes, we know the words. This past weekend, the U.S. anthem was booed at both professional hockey and basketball games in Canada. And very few people said ‘sorry.’

In the travel industry, advisor forums and consumer social media pages have been filled with anecdotal stories of Canadians cancelling trips to the U.S., even some who only planned to transit through Florida ports to get on a cruise ship. This is not without precedent – it happened during President Trump’s first term too — but the volume of outrage is higher than ever. 

Trump’s assertion that the U.S. “needs nothing” from Canada is being seen by many here as an egregious insult from the leader of a nation we have had a free trade agreement with for nearly 40 years — arguably to the benefit of both of our economies, and Mexico too.

So where do we go from here, as a country and an industry?

One thing we must always remember is that while governments are elected by the people, their actions are not representative of all the people. We can be pro-Canadian without being anti-American.

We can still love our American friends, colleagues and suppliers. Some of us will choose to continue travelling to the U.S. because it is a world-class destination with a welcoming hospitality industry. Others may boycott for political reasons, while still others may stay away due to the weakness of our currency, which has fallen to a 20+-year low in part due to the tariff threats and economic uncertainty.

U.S.-based travel suppliers should continue to market in Canada – our beef is not with you. By showing some sensitivity towards our distinctiveness as a market – and indeed our sovereignty as an independent nation — there may well be an opportunity to gain share.

Another thing to remember: this too shall pass. Governments come and governments go, and the pendulum swings from right to left and back over time. 

Should we be doing everything possible to insulate ourselves from unpredictability? Absolutely. But panic is unproductive and so is uncontrolled anger. The best solution is likely to involve protecting our own interests as much as possible while still working closely with the U.S. friends and colleagues we trust and value.