News / Advocacy

ACTA outlines U.S. tariffs’ impact on travel & advocacy plan at town hall

Jessica Huras

03-12-2025 7:32 am

Jessica Huras

Jessica Huras is a writer and editor with over a decade of experience creating travel and food content. In addition to writing for PAX, she’s a content editor for LCBO Food & Drink magazine and her work has also appeared in the Toronto Star, the Globe and Mail, Toronto Life, Chatelaine and Elle Canada.

Newly-imposed U.S. tariffs and their ripple effects on the travel industry took centre screen at a virtual town hall hosted by the Association of Canadian Travel Agencies and Travel Advisors (ACTA) for its members on Tuesday (March 11).

ACTA President Wendy Paradis and Director of Advocacy and Industry Relations Avery Campbell led the discussion, detailing the economic implications and the association’s continued advocacy for travel advisors.

Canada and the United States share one of the world's largest trade and travel relationships, with 76 per cent of Canada's exports going to the U.S. and millions of Canadian travellers crossing the border each year, according to stats shared by Campbell during the town hall.

However, recent tariff escalations, which were initiated by a U.S. executive order, are straining this relationship and creating uncertainty within the travel sector.

“The information around tariffs and their impact is not only changing by the day, but by the minute,” said Paradis. “Rest assured that the ACTA team are intensely monitoring the situation and how it impacts all of us in the travel industry and you as travel agencies and advisors.”

The initial U.S. executive order, effective March 4, imposed a blanket 25 per cent tariff on all Canadian goods, excluding energy products, which face a 10 per cent tariff. The order has since been paused on some Canadian goods.

A decline in U.S.-bound travel

The tariffs appear to already be reshaping Canadian travel trends.

Statistics Canada research from February, shared by Campbell, indicates a 14.5 per cent decline in Canadian travellers heading to the U.S., including a 23 per cent drop in land travel and a 2.5 per cent decrease in air travel.

With 80 per cent of Canadians reporting they intend to avoid travel to the U.S., according to the latest research from GPS Market, Campbell said ACTA expects the decline in air travel to continue in the coming months.

A U.S. flag at Washington Monument. (Unsplash/Chris Hardy)

However, rather than cancelling trips altogether, he said many travellers are shifting their plans to other destinations.

“Businesses are being impacted in different ways,” said Campbell, noting that some agencies are seeing a surge in bookings for alternative destinations.

“We’re hearing from some members that business is fine – yes, they’re seeing reductions in U.S. travel but that’s counterbalanced by increased travel to Mexico or the Caribbean,” he said.

Meanwhile, advisors specializing in U.S. travel, particularly family-focused vacations to destinations like Disney and Universal, are reporting cancellations and declining bookings.

“We're seeing some businesses that focus on family leisure travel who are really in pain right now as their sole source of business is the United States,” he said.

Beyond the travel industry, the economic effects of the tariffs could be far-reaching.

Campbell noted that Marc Miller, Canada’s Minister of Immigration, Refugees and Citizenship, has warned that at a 25 per cent flat tariff rate, the government expects about one million Canadian job losses — approximately four per cent of the workforce.

Campbell said this economic strain could affect Canadians' overall ability to travel, not just to the U.S.

“What this may create is a situation where Canadians have less disposable income to spend on travel,” he said. “There would be an expectation that all travel will decline should the situation continue or progress.”

Advocacy plan

Paradis and Campbell emphasized that ACTA is actively working with government officials and industry stakeholders to address the consequences of the U.S. tariffs.

“ACTA is first and foremost engaged in every aspect of what is happening in the United States and what is happening in Canada,” said Campbell.

He explained that ACTA is in regular discussions with key government bodies, including the Department of Finance and Global Affairs Canada, to ensure travel advisors' concerns are heard.

“Those meetings are twofold,” Campbell said. “One is to get an inside peek at what's going on behind the scenes and before it hits the news, and second to make sure that we're advocating and keeping the interests of our members front and centre to those decision makers in the government of Canada.”

ACTA is also working closely with its U.S. and global counterparts, including the American Society of Travel Advisors (ASTA) and the World Travel Agents Association, to explore ways to reduce the effects of these shifts on travel advisors.

Additionally, ACTA is strengthening its partnerships with suppliers to aid travel advisors.

Campbell said ACTA is reinforcing a series of seven key “asks” of suppliers that were originally established during the pandemic, such as paying commission at the time of final payment and protecting commission, when travel is cancelled due to issues under the supplier’s control.

“These ‘asks’ will reduce friction for members and while members may see a reduction in demand due to the tariff impacts, if we can reduce cost to members, that will absolutely help offset any negative impact on their businesses,” said Campbell.

“We need data”

ACTA is asking its members to actively participate in its advocacy efforts by sharing data on how the tariffs are affecting their businesses.

Travel advisors are encouraged to report sales trends, booking shifts and customer sentiment, helping ACTA shape its policy recommendations.

“We need data,” said Campbell. “We need information from our members to understand how your business is being impacted by the current situation.”

Campbell emphasized that member feedback is essential for ACTA to identify the most pressing challenges and refine its advocacy strategy.

“We’re working to understand how governments can support our members – either financially or through changes in red tape to reduce their costs to help ease them through this challenging time,” he said.

“Any information that you can share that would help shed light for us to understand what's happening to our members will help us advocate for financial support or other support that may help you.”

To further strengthen advocacy efforts, ACTA has launched a Canada-U.S. Relations Portal on its website, offering real-time updates and advocacy tools.

The portal includes a letter-writing campaign designed to pressure U.S. senators in key states to push back against the tariffs.

Paradis and Campbell said ACTA remains committed to supporting travel advisors through this economic uncertainty.

The organization will continue hosting town halls, industry summits and educational events to keep members informed and prepared.

“Our number one priority is to ensure that our members have the information they need now and in the future,” said Paradis. “We're paying attention to what's going on in the background, so that you can focus on what you do best, which is sell and service travellers.”

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