Understanding The Impact of Tariffs on Travel Plans, Celebrations, and Big Ticket Spending
July 2025
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While most Canadians continue to feel negatively about the current economic situation, sentiment is showing signs of improvement compared to the last month.
Perceptions of current economic situations
%
of Canadians feel negatively about the current economic situation
vs 82% in late June
Top emotions around current economic situation
Anxiety
15%
vs 12% in late June
Pessimism
14%
vs 25% in late June
Frustration
11%
vs 17% in late June
Stress
11%
vs 7% in late June
Overall optimism about the future has remained relatively stable compared to late June. However, as tariffs begin to set in, optimism is slowly rising among Canadians.
Level of optimism about the future
Level of optimism about financial future
- 8-10 (vs 9% in late June) 12%
- 5-7 (vs 50% in late June) 46%
- 1-4 (vs 41% in late June) 42%
- 8-10 (vs 17% in late June) 20%
- 5-7 (vs 55% in late June) 57%
- 1-4 (vs 28% in late June) 23%
*10 being very optimistic on the scale
Two in three Canadians (66%) plan to travel in the next 6 months, with domestic trips far outpacing international plans.
Travel plans for the rest of 2025
%
of Canadians are planning to travel within the next six months
- Canadians planning to travel within Canada 42%
- Canadians planning to travel internationally 24%
Many Canadians are choosing to stay domestic, citing a desire to support local tourism, safety concerns, avoid logistical and health concerns of international travel, and feel that travel expenses are higher due to tariffs and trade wars.
Reasons for not leaving country
Net 37% of Canadians cite logistical and planning concerns, while net 59% cite health and safety concerns.
- Want to support local/national tourism 52%
- Feel safer in Canada 51%
- Avoiding international travel due to geopolitcal or health concerns 39%
- More expensive due to tariffs and trade wars 38%
Have Your Travel Plans Changed Over the Past Few Months? Here’s What Travelers Say
Had been planning American holidays, cancelled those and stayed in Canada instead.
We had a large amount of soon to expire travel points given to us so we planned a trip we otherwise wouldn’t have.
Nearly half of Canadians (45%) are traveling less compared to past years.
%
of Canadians have not made any changes to their travel plans in the past few months.
%
of Canadians are traveling less frequently compared to previous years
Among Canadians who have made changes to their travel plans, the most common changes are cancellations and postponements, as well as changing travel types/habits, budget and costs, and lifestyles.
Ways Canadians are changing the way they travel
[Among Canadians who are making changes to their plans]
- of Canadians cancelled or postponed a trip 74%
- of Canadians have changed the type of trip they are taking 62%
- of Canadians changed the budget & cost of their trip 38%
- of Canadians have changed their lifestyle or shifted priorities 33%
The primary reason Canadians are changing their travel plans is because of financial reasons, with lifestyle and health and safety reasons also top of mind.
Reasons for changing travel plans
%
of Canadians have changed their travel plans due to financial reasons
- My personal budget is tighter right now 44%
- Cost of travel has gone up 43%
%
of Canadians changed their travel plans due to lifestyle changes
- Travel just hasn’t felt like a priority lately 23%
- I’ve shifting my focus to local travel instead 16%
%
of Canadians changed their travel plans due to health & safety concerns
- Safety concerns (crime, weather, or global conflict) 29%
- Health reasons 11%
We asked Canadians what they would tell a friend if they were rethinking their summer plans because of tariffs. Some have a more cautious approach to travel, while others feel they should take advantage of traveling while they can.
32, M, Manitoba
30, F, British Columbia
I’d tell them to go ahead and do what they wanted to do, because I don’t think that these issues will have big consequences on the short term. Especially now, we need to enjoy what we can have, and to take advantage of the opportunities we have now, because we never know if the situation will get worse.
“I would tell them to scale back on unnecessary purchases and even cancel travel plans considering the current economy we are living in.
I would tell my friend to wait it out or speak to a financial professional id they are concerned. The economy and global issues being so prevalent right now can make things rather unpredictable at the moment.
I think that life in Canada is getting excessively expensive and therefore consumers should find the best value for their personal situation.
Many Canadians say they are avoiding travel to the US because of their displeasure with the current US administration, concerns about their safety, and not wanting to support the US economy.
I will not be travelling to the USA for the foreseeable future. They are not currently even upholding the rights of their own citizens, and I cannot trust that I would be safe there. I also do not want my tourism dollars supporting a tyrannical and fascist government that has shown little respect for its own rule of law, its citizens, or our country’s sovereignty for that matter.
I will not travel to the United States. I do not feel safe going there because I’m afraid I might end up being taken by ICE
We asked Canadians what type of travel they’re hoping to do and anything that’s holding them back.
Many respondents plan to travel domestically within Canada for family, relaxation, or budget reasons. Others hope to travel international, but are influenced by high costs, economic uncertainty, and personal finance restrictions.
75, M, Ontario
31, M, British Columbia
I’d like to go to somewhere near the ocean, to relax and unwind after the stressful year it has been. I am not planning on reducing the vacation cost itself by tallying cheaper flights/hotels, etc. But I am planning to reduce purchases while I am there
My planned travel involves shorter trips (2-4 days) within Canada. The purpose of these trips is social obligations with family and friends (weddings, family reunions, etc.) I am trying to travel on a budget by looking for airfare deals and staying with family instead of paying for accommodations where possible.
We asked Canadians what travel brands they felt were doing something right in the current environment, and many mention local Canadian brands.
Porter Airlines. I appreciate their reliability, quality of service, and rewards program
Air Canada – they seem to have improved the customer experience while traveling abroad!
Expedia has always been great, I always book with them. I like how BC ferries is advertising its vacations as well.
ViaRail just announced reduced fares for younger Canadians.
Some also mention they don’t find brands doing things right overall.
All brands have increased their prices, so that’s not helpful.
I don’t think anyone is doing it right. Everyone is just out to make the most money possible.
Many Canadians are changing how they celebrate due to rising costs, tighter budgets, and to prioritize more urgent spending. Birthdays are the occasion most impacted.
Financial pressure is changing the way Canadians spend money on holidays and special occasions.
%
of Canadians changed the way they spend money on holidays and special occasions
Holidays or Occasions Most Impacted
Birthdays
%
Religious or cultural holidays
%
Anniversary
%
Family gatherings or reunions
%
Many Canadians are changing how they celebrate—due to rising costs, tighter budgets, and a desire for simpler, lower-pressure gatherings.
Why Canadians are Changing Their Celebration Plans
%
Price to organize was too high
%
Prioritize more urgent spending
%
They wanted something more simple
%
Travel or accommodation costs were too high
How Canadians expect their spending on holidays/celebrations to change
%
Expect to spend the same amount
%
Expect to spend less
%
Expect to spend more
How Canadians Feel About Upcoming Holidays
Neutral
49%
Excited
25%
Anxious/Stressed
13%
Dreading Them
5%
For those who do back-to-school shopping, Canadians are split on how financial worries will affect their back-to-school spending.
[Among Canadians where BTS shopping is relevant]
%
Expect their spending to stay about the same on supplies
%
Expect to spend less than usual on supplies
%
Expect to spend more on supplies
Canadians had advice for brands for this year’s back-to-school sales.
Keep the deals going into October so that people can take advantage of sales as need arises at the beginning of the year.
Make quality items affordable. Don’t start the advertising the minute school stops in June. It’s exhausting and makes people anxious to spend on next year only minutes after finishing the last one.
Beyond back-to-school, economic anxiety is driving hesitation around bigger purchases—with half of Canadians holding off for now.
%
of Canadians say they are not likely to make a big-ticket purchase in the next few months
Reasons for Canadians pausing on big ticket purchases
For those still planning big-ticket buys, it’s about experiences, essentials, and the home—more than luxury or indulgence.
- Are being more cautious with their budget 45%
- Prices are too high 40%
- Tariffs or trade issues are making some things more expensive 31%
- Feel there is too much uncertainty within the economy 30%
- Trying to pay off debt or build up savings 30%
Big ticket purchases Canadians are planning
Despite financial concerns, some Canadians are still looking to spend on big ticket items, such as home repair and events.
- Major home repair or renovation 18%
- Events or experiences 17%
- Investment or financial commitments 13%
- Furniture 12%
A word on our approach...
Fine Print:
A Nationally Representative Angus Reid Group Sample
Sample Size: n= 302 Canadians aged 18+ years old
Fieldwork dates: June 13-18, 2025
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Coming Soon:
Over the next several months, we’ll be diving deeper into how tariffs and economic uncertainty are shaping everyday life. From travel plans to the impact on media consumption, personal wellness, big-ticket purchases, and budgeting strategies — we’ll explore it all. We’ll also cover shifting consumer trust in brands and retailers, impulse spending trends, and how special occasions and summer holidays are being affected.
Stay tuned for fresh insights!
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