The travel industry on both sides of the border continues to hold its breath after announced tariffs on Canadian goods entering America – set to take effect on Tuesday – were delayed 30 days. Such was the anger in Canada that the threat of a 25% tax by Donald Trump (10% on energy) prompted Prime Minister Justin Trudeau to urge Canadians to “choose Canada,” including “changing your summer vacation plans to stay here in Canada.”
Many operators contacted by Travel Industry Today declined comment on the effect that the imposition of tariffs – and its negative effect on the Canadian dollar – might have on Canadian travel to the US, preferring to see how the issue plays out.
“WestJet is actively reviewing the potential impacts of tariffs and related countermeasures. We can’t offer specific details at this time as this situation remains dynamic,” the company told Travel Industry Today in an email.
Meanwhile, observers south of the border expressed dismay and worried about the effects of a trade war, with the Boston Globe, for example, warning that the US travel industry could be headed for a second “Trump slump” if Canadians choose alternative places to travel.
At a Colorado travel event in Toronto on Tuesday evening – titled “Colorado Loves Canada” – the state’s deputy director of international tourism Andrea Blankenship acknowledged the elephant in the room, telling the audience, “We will always be there for you, no matter the current situation. Canada is Colorado’s No. 1 trading partner, including tourism. We know you will continue to support us again – even if it’s not now. We are a very welcoming and inclusive state, despite the political situation.”
As for Canadians, the mood in Canada amid the trade spat, according to the Angus Reid Institute, is multifold. The population has received a boost in patriotic sentiment but remains concerned about what the future holds.
A poll by the Angus Reid Group finds a 10-point jump in the number of Canadians who say they are “very proud” of their country compared to just two months ago. The same increase is noted in the number who say they have a “deep emotional attachment to Canada”, which has risen from 49 to 59%. And the proportion who say they would like to see Canada join the United States has dropped from six per cent to four per cent over the same period.
This rallying of emotion is not evenly spread across the country. The largest gains are seen in Quebec (+15), Atlantic Canada (+14) and B.C. (+13). The 45% in Quebec who express a “deep emotional attachment” is especially notable since it outpaces the 37% measured in 2016.
Sentiment has moved less in Alberta (+6) and Saskatchewan, and statistically not at all in Manitoba (-3).
While travel intentions were not specifically addressed in the survey, key findings included:
- The amount of attention paid to the tariff issue is matched in recent Angus Reid Institute tracking only by the onset of the COVID-19 pandemic. Nine-in-10 Canadians say they are following the issue closely. This includes the largest portion seen in 10 years saying they are following it “very closely” – 56%.
- Canadians are more likely to want a reduction of the country’s reliance on the United States (91%) over repairing the relationship to a place it was before the near trade war (59% agree this should be attempted).
- Three per cent of Canadians say they would lose their job if tariffs were implemented, while three-in-10 (30%) are less certain but worry about what might happen.
With this newfound national fervour, Canadians are looking at productive ways to fill the 30-day period between one tariff threat and the expected next. Nearly all Canadians (95%) agree that Canada should immediately begin work to eliminate barriers between the provinces and territories to increase the flow of domestic goods. Four-in-five, meanwhile, say that Canada “needs to ensure it has oil and gas pipelines running from sea to sea across the country.”
How many are changing travel plans is unknown.
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