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The impact of U.S. President Donald Trump’s 25% tariffs on Canadian imports and Canada’s counter tariffs has significant implications for various sectors of our economy, including tourism, with Ontario poised to experience both direct and indirect effects on this industry.
The Canada-U.S. border has traditionally seen substantial movement of tourists in both directions. However, these escalating trade tensions have led to a surge in nationalistic sentiments, influencing travel decisions. Reports have indicated that many Canadians plan to boycott travel to the U.S. in response to Trump’s tariffs, opting instead for domestic destinations or alternative international locations, a trend that has not gone unnoticed by tourism experts.
“We're hearing that 40% of Canadians that had booked a trip to the U.S. have cancelled their plans,” says Explore Waterloo Region CEO Michele Saran, noting travel destinations nationwide are expecting an uptick in tourists this summer. “If I was a Canadian destination that actively pursued the U.S. market, right now I would be pushing the exchange rate really hard.”
Potential side-effects
However, economic downturns typically result in reduced disposable income, which can lead to a decline in domestic tourism as residents may cut back on travel and leisure activities.
Moreover, the weakening of the Canadian dollar is likely to make international travel more expensive for Canadians, potentially reducing outbound tourism. But on the flipside, a weaker Canadian dollar could make Canada a more attractive destination for foreign tourists, as their currencies would have greater purchasing power.
There are also potential side-effects surrounding the impact heightened political tensions and changes in consumer sentiment that have been created.
“I have been told that Americans are expressing concern about how they'll be treated if they come to Canada right now,” says Michele. “So, they're a little bit reticent about it right now. But from a leisure travel perspective, Waterloo Region has always focused on marketing in Southern Ontario.”
In fact, she says the travel organization is in the process of creating and promoting new packages to encourage visitors to spend more time here once they arrive.
Specific marketing
“We want to provide them with options they can’t find in downtown Toronto,” she says of this new promotional tactic. “We're giving them an itinerary so that they'll be able to create a mental movie of a staycation in Waterloo Region and how they could spend their time here.”
Michele says Explore Waterloo Region is conducting specific marketing targeted at couples, families and groups of friends highlighting the authentic ‘experiences’ that cities located on the edge of nature can offer.
“We're testing them right now at the target market to make sure we mitigate any risk to make sure that these markets find them compelling,” she says, noting Waterloo Region’s proximity to the GTA will likely prove to be an even bigger advantage this year. “About 90% of our leisure visitors come from that area. It’s easy to get here and we also have we have both rural and urban, so there's something for everyone when you come to the region.”
Annually, Waterloo Region attracts approximately five million visitors not just for leisure visits, but conferences, meetings, and sporting events, which translates into nearly $560 million for the local economy.
To learn more, visit Explore Waterloo Region.
Tourism stats:
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Brian Rodnick 236 March 13, 2025 |
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Greg Durocher 41 July 28, 2023 |
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Canadian Chamber of Commerce 24 January 29, 2021 |
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Cambridge Chamber 2 March 27, 2020 |
750 Hespeler Road Cambridge, ON N3H 5L8
Phone: 519-622-2221
Fax: 519-622-0177
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