U.S.-Canada tariff war will have many travel impacts.
Canadian ultra-low-cost airline Flair introduced a new offer for its fliers this week, providing a 25% discount on select domestic and international destinations—excluding the U.S. The promotion highlights Canada, Mexico, and the Caribbean, and takes a jab at the recent U.S.-imposed tariffs with the tagline, “Nothing can trump this deal!” The U.S. recently introduced 25% tariffs on Canadian products.
The promotion has now ended, and the travel period extends through June, covering the prime spring travel season when Canadians typically head to their southern neighbor. However, this year, many appear to be exploring other destinations. The offer comes in the wake of the tariffs imposed by U.S. President Trump—25% on Canadian imports—following threats made last month.
Meanwhile, Canadian Prime Minister Justin Trudeau has urged Canadians to prioritize domestic travel. In a February speech, he said, “It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites, and tourist destinations our great country has to offer.” Canadians have responded quickly, with media reports indicating they are rethinking their travel plans and canceling vacations to the U.S.
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Air Canada is already anticipating a decline in demand for U.S. bookings and has reduced capacity to certain states. WestJet told the National Post that it has observed a shift in demand from the U.S. to other destinations, while Air Transat has also reported a slight slump following the tariff announcements. However, airlines are waiting to see how the tariffs will affect bookings in the long term.
Related: Canadians Are Canceling Travel Plans to U.S. and Threatening Boycotts
This Affects Everyone
The tariffs are expected to raise prices in Canada on personal care items, produce, and other goods, while also impacting jobs. Travel organizations warn that the U.S. tourism sector will also feel the effects. Canadians represent the largest group of foreign visitors to the U.S.—20 million crossed the border last year, spending $20.5 billion. If travel hesitancy leads to even a 10% reduction, the U.S. could face losses of up to $2 billion. States like Florida, Texas, New York, California, and Nevada are expected to be hit the hardest.
In response, Canada has imposed its own tariffs on $107 billion worth of U.S. products entering the country. This could lead to higher costs for Americans on electricity, food, and agricultural products, among other goods. Imports from Mexico and China are also expected to see price increases, potentially affecting grocery bills and electronics.
The repercussions extend beyond economics. Canada and the U.S. have long been close allies, but recent events have strained relations. Canadians have expressed their frustration by removing American products from store shelves and boycotting goods from south of the border. In February, Canadian crowds booed the U.S. national anthem, and after the tariffs were officially imposed, Trudeau told reporters that Canadians would continue to boo the anthem.
Related: These U.S. States Could Be Hardest Hit by Canada’s Travel Boycott
