A non-profit organization in Canada is warning that tariffs could lead to further financial losses and widespread layoffs in the country’s tourism industry.
The Canadian Association of Tour Operators (CATO), which represents parts of the country’s overall tourism industry, is pushing for change to reduce further impact. According to CATO, U.S. President Donald Trump’s plan to impose 25 per cent tariffs on Canada has “already caused significant damage” even before tariffs took effect on Tuesday.
“As for the vital tourism sectors of both the United States and Canada, the costs are being felt across the industry, from hotels and restaurants to travel agencies, tour operators, and transportation services,” reads a statement emailed to Daily Hive. “Thousands of jobs are at risk, and without swift and decisive action, the consequences will only worsen. We cannot afford to stay silent.”
Despite the impact of tariffs, the organization said that “it’s not too late to turn the tide.” It’s urging Canadians to fight to protect jobs in the tourism industry by raising awareness, speaking out, contacting local representatives, and supporting tourism-friendly policies.
“We cannot let these tariffs dismantle a sector that has been a cornerstone of economic activity between two great nations,” they stated. “The U.S.-Canada tourism industry represents more than just a trade relationship — it represents a deep friendship and partnership that has existed for hundreds of years.”
With more Canadians cancelling U.S. vacations worth thousands of dollars to protest tariffs and due to the weakened loonie, possible job cuts would also likely be felt south of the border. Trade barriers could also disrupt the flow of tourists.
“From cross-border travel to tourism-driven industries, our economies are intertwined in a way that is critical to the livelihoods of so many individuals and families,” stated CATO.
The U.S. Travel Association, a national, non-profit organization that represents all components of the U.S. travel industry, estimates that even a 10 per cent decrease in Canadian travel could lead to US$2.1 billion in losses and 14,000 job cuts.
“This is a fight to protect thousands of jobs in every part of the tourism industry, from hospitality and transport to entertainment and retail,” stated CATO. “These tariffs are not just a political issue; they are a real threat to the economic health of our communities.”
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