“I’m absolutely concerned”: Travel advisors, execs respond to trade war; some cancellations reported

This article was updated on Monday, February 3 at 11:49 a.m. EST.

Canadian travel advisors are bracing for impact as political tensions brought on by U.S. President Donald Trump’s trade war with Canada, which came into clearer focus over the weekend, prompt cancelled trips and shifts in consumer spending.

President Trump signed an executive order Saturday (Feb. 1) that laid blanket 25 per cent tariffs on Canadian imports, with the exception of energy, which will see a 10 per cent tariff.

The tariffs are expected to remain in place until Trump is satisfied that Canada is doing enough to stop the flow of fentanyl into the U.S.

In retaliation, Prime Minister Justin Trudeau has announced counter tariffs on $30 billion in American goods, which are set to rise to $155 billion later this month.

The first round of tariffs, in both directions, are set to begin Tuesday (Feb. 4).

The perceived act of economic warfare, which Trump has been signalling for months, has come as a shock to many. Since the weekend, Canadians have been rallying efforts to counteract the U.S. tariffs. Calls to “Buy Canadian,” for example, have gained traction on social media, and offline, in recent days.

And the tension is real. In Ottawa on Saturday night, an arena full of typically-polite Canadians booed the U.S. national anthem before the Ottawa Senators played the Minnesota Wild. The booing happened again in Toronto on Sunday at a basketball game before the Toronto Raptors played the LA Clippers.

U.S. travel, cancelled?

What does this mean for the travel industry? Will Canadians start cancelling trips to the United States, out of principle?

“Yes, we are starting to see this,” said Jamie Angus-Milton, a partner at Uniglobe Carefree Travel in Saskatoon, Saskatchewan. “We have had a handful of clients cancel their trips to the U.S. in favour of other destinations and we are seeing new inquiries specifically ask to go places outside of the U.S.

Angus-Milton said many customers are requesting Mexico as an alternative, as well Europe, Australia and New Zealand.

“People are also seeking to spend their dollars locally and go to a Canadian destination,” he said. “We are lucky that Canada is such a diverse and wonderful place to visit – we have so many great options to explore close to home.”

The call to boycott U.S. travel has gained some momentum in recent weeks. Last month, Premier British Columbia David Eby urged residents to rethink travelling to the U.S. in light of Trump's tariff threats.

"We should really be thinking carefully about spending our money in that country," Eby was quoted as saying, as reported by CBC News. "We will not spend money in a country that wants to do economic harm to Canadians.

Angus-Milton believes that with any major political or economic change, there is potential for disruption and impact to the travel industry. 

“However, the travel industry is nothing if not versatile and accustomed to change,” she said. “I believe we can limit the negative impact of the tariffs by asking our travellers to ‘travel with intention’ and choose Canadian destinations and/or Canadian travel suppliers as much as possible when travelling.”

“Instead of not travelling, we believe travellers will travel differently, and it’s up to us to give them options to do so.”

READ MORE: B.C. Premier tells residents to rethink U.S. travel in light of Trump tariff threat

Angus-Milton is cautious of the situation, saying that her agency will adjust its marketing strategies accordingly. But she believes it’s an obstacle her team can overcome.

After all, “buying local” can also mean supporting a local travel agent or agency.

“Uniglobe Travel is well positioned to capture the interest in supporting local as we are a 100 per cent Canadian owned company,” Angus-Milton said.

An economic bruising

It’s early days, but economic experts and travel associations are sounding the alarm.

"Trump's tariff hammer will come down hard on Canada's economy," the Bank of Montreal said Sunday, as reported by CTV News. "If the announced tariffs remain in place for one year, the economy would face the risk of a modest recession."

READ MORE: Trump's tariffs – should the Canadian travel industry be worried?

The bank forecasts reduced demand for Canadian goods in the U.S., disrupted supply chains and higher prices for goods in Canada due to Ottawa's retaliatory tariffs.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said Trump's tariffs are "profoundly disturbing" and will have "immediate and direct consequences on Canadian and American livelihoods."

"Tariffs will drastically increase the cost of everything for everyone," Laing told CBC News.

Canada’s economic conditions directly affect disposable income and consumer spending, which, if it’s severe enough, can cripple the travel industry.

The weak Canadian loonie is something to consider, too, as that will also influence where people spend their travel budgets. 

ACTA warns of reduced travel spending

Over the weekend, The Association of Canadian Travel Agencies and Travel Advisors (ACTA) publicly condemned Trump’s tariffs in a post to social media.

As PAX first reported, ACTA says that while travel agencies and advisors may not be directly targeted by President Trump’s tariffs, “the economic consequences will be severe,” resulting in higher costs for businesses, weaker consumer confidence, and reduced travel spending.

“These tariffs harm not only Canadian businesses but also American consumers and companies that rely on seamless trade with Canada. History has proven that protectionist policies do not strengthen economies; they weaken them,” wrote ACTA, which is calling on Ottawa to support travel professionals ahead of economic turbulence.

CATO warns of negative impacts

The Canadian Association of Tour Operators (CATO) is also condemning the tariffs imposed by Trump.

“These tariffs will cause significant harm to our economy, leading to job losses, increased costs for goods, and reduced discretionary spending for consumers on both sides of the border. This situation will negatively impact the tourism and travel industry,” the association wrote in a statement Monday.

The tourism industry, a vital economic driver for both Canada and the United States, is particularly vulnerable, CATO said.

“Increased costs are likely to be passed on to consumers, reducing their purchasing power and making travel much less affordable for Canadians and Americans alike,” CATO said.

With travel being a significant contributor to economic growth, a decline in consumer spending “will have ripple effects throughout our industry and beyond.”

“One of the most alarming consequences of these tariffs is the potential for widespread job losses and creating a vicious cycle that is difficult to reverse,” said CATO.  

“Significant” consequences

Reese Morash of Halifax-based agency TravelBug Travel Group says he’s “absolutely concerned” about the impact Trump's tariffs could have on his business.

“Consumers will definitely feel the effects with less disposable income,” he said, noting that his agency hasn’t experienced any cancellations yet.

While travel made “a remarkable comeback” from the pandemic, “there could be significant negative consequences for all Canadian travel agencies, affecting everything from air fare and hospitality to cross-border tourism and business travel,” Morash said.

He suspects there will be higher costs for car rentals and tour operators.

READ MORE: Canadians less likely to travel to U.S. with Trump in office: poll

“The travel industry will experience reduced demand – not immediately, but definitely if the tariffs continue over an extended period of time,” he said. “Consumers will seek out cheaper alternatives or cut back all together.”

“We must be prepared and look for alternative options to sustain ourselves,” he said.

Morash shared several ideas for weathering the storm, from ramping up marketing efforts to highlighting the value of using a travel advisor to promoting travel within Canada.

Amid the economic uncertainty, he would like to see suppliers become more flexible with deposits and final payment deadlines for consumers.

As for agents, the situation is an opportunity to advise clients to book in advance (and lock in early bird prices), but it’s also a window for honest dialogue.

“Be open and educate clients on why costs are rising,” he said. “We all survived COVID, we will survive this.”

“Hard to ignore”

While the U.S. tariffs primarily target goods, rather than travel directly, the broader economic impact is “hard to ignore,” said Michael Johnson, president of Ensemble Travel Group.

“Economic uncertainty always presents a challenge to discretionary spending, and we may see shifts in travel patterns as a result,” Johnson told PAX on Sunday (Feb. 2).

READ MORE: ACTA warns of reduced travel spending as Trump tariffs loom

Johnson said Ensemble supports ACTA’s condemnation of the U.S. policy measures, as tariffs “not only threaten the affordability of travel but also create uncertainty for travellers and advisors alike.”

“The Canada-U.S. travel corridor is one of the most vital in the world, and any disruption to that flow—whether through increased costs or diminished consumer confidence—is a concern for the entire industry,” he said.

Johnson said Ensemble hasn’t yet seen any significant shifts in booking patterns, but he’s monitoring the trends closely.

“Historically, economic and political tensions can lead travellers to adjust their plans—whether that means choosing domestic travel, exploring alternative international destinations, or postponing trips altogether,” he said.

As for the push to “buy Canadian,” Johnson said Ensemble is focused on providing the best partners that meet its members’ needs.

“We do encourage advisors to explore all options that provide value and seamless experiences for their clients,” he said.

Impact on cruise

The push to "buy Canadian” is easy to understand when it comes to purchasing certain goods, like groceries. In response to the tariffs, grocery chain Loblaw Companies Ltd. said it will stock more food that’s grown and made in Canada.

In Ontario, the LCBO, starting Tuesday, will remove all American products from its shelves, making way for Ontario-made or Canadian-made products.

But this sentiment could have broader implications on travel – the cruise industry, for one, given that the largest cruise lines, and ports, are based in the U.S. 

Ontario-based Michelle Gaudet of Inspired Travel Adventures & Women's Wellness Journeys is feeling the sting.   

“I have already had clients cancel their upcoming cruise due to the current political climate,” Gaudet told PAX yesterday,

While she finds the situation frustrating, she “completely understands” her clients’ decision. “Some travellers are choosing not to support travel to the USA right now, and as always, I respect and support my clients in whatever choice feels right for them,” Gaudet said.

As a travel advisor, she feels her role is to help clients look at alternatives and perhaps help them “discover exciting new places they may not have considered before.”

“Travel is about experiences, connection, and exploration, and there is a whole world of incredible options waiting to be explored,” she said.

Pat Probert of the Bob Family Travel Team, an affiliate of TravelOnly, is an experienced cruise seller who has racked up several sales awards over the years – and he, too, suspects a shift.

“With many cruises departing out of Florida, clients who would normally fly in for multiple days will now probably only go for a day and fly home after the cruise, instead of staying and shopping,” Probert told PAX.  

Caroline Hay, general manager of cruise at Trevello Travel Group, says it’s too early to predict the full impact tariffs may have on the cruise industry.

“Travel advisors should stay informed, monitor developments, and continue focusing on delivering exceptional experiences for their clients,” Hay told PAX.

She said Trevello hasn’t seen any major shifts in its cruise sales yet. The company’s January sales were actually trending ahead of last year, Hay noted – and “we’re seeing strong momentum building for 2025.”

“Given cruise payment structures, many upcoming sailings have already had final payments made, which are typically non-refundable at this stage,” Hay said. “Because of this, we don’t anticipate a wave of cancellations.”

U.S.-based cruise ports are popular, but Canadians have other options, including European and global itineraries, Hay pointed out.

“For clients seeking warm-weather cruises outside the U.S., departures from St. Martin and Barbados provide excellent alternatives,” she said. “Demand for cruising remains strong, and travellers will continue to seek the best options based on value, experience, and convenience.”

What are the alternatives?

Canadian travel advisors may want to have alternatives on standby, however. 

Pat Probert said he’s already fielding requests for non-U.S. travel. “We received a call Saturday for us to not quote a trip to Las Vegas, but instead look at Mexico and a resort with a casino,” Probert said.

Clients that usually spend winters in Florida are heading to other destinations, like Portugal, he said. (The weak Canadian dollar is also influencing these decisions, he added).

But the tariff situation may bruise business – insurance sales, especially, Probert said.

“Clients who go to Florida or Arizona, or other places, are looking at either staying in Canada or taking a winter off and just staying in Canada,” said Probert, who is one of Manulife’s top producers.

“For everyone involved, we are hoping that this unprecedented trade war ends quickly,” he said. “We love America and we love Americans. It will be sad for so many Canadians that have built friendships in the United States.” 

While there’s certainly some sentiment to avoid U.S. travel, a full-on boycott hasn’t taken shape just yet.

Beth Beier of TierOne Travel in Calgary, AB, told PAX that her two biggest sales this month were, in fact, U.S.-based trips.

“Both after the presidential inauguration, and each worth more than $30,000,” Beier said.

“While I’m choosing to travel elsewhere for the next little while, some of my luxury travellers are still heading south of the border,” she said. “On Friday, I sent out quotes for Nashville and Alaska, so for the time being, I don’t see an impact on travel to the U.S.”

“Who knows, next week could be a different story! I’m not saying this as a result of tariffs, but that things in travel are not always predictable.”

Advice for travel advisors

As political leaders scramble to prepare for a trade war, travel advisors face a unique circumstance as they communicate with concerned clients.

Michael Johnson at Ensemble is advising the trade to diversify their business and “be more resistant to the whims of external forces.”

“It is important for advisors to stay informed and proactive,” he said. “This is a time to leverage their expertise and communicate openly with clients, offering guidance on potential cost implications and alternative options.”

Flexibility and strategic planning will be key, he said.

“Whether that means booking early to lock in prices, considering all-inclusive packages to mitigate variable costs, or exploring destinations that offer strong currency exchange value,” he said.

“Most importantly, we encourage advisors to lean on their networks, including Ensemble’s supplier partners, to ensure they are providing the best solutions for their clients in an evolving landscape.”

Caroline Hay at Trevello echoed that sentiment.

“Stay informed, reassure clients, and highlight the value of cruising with a positive outlook,” she said, urging travel professionals to “avoid speculation or negativity.”

“Position yourself as a trusted expert, providing facts, guidance, and solutions,” she said. “Stay connected with suppliers, explore alternative cruise options if needed, and educate clients on the benefits of booking early rather than waiting for uncertainty.”

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