How Recent U.S. Tariffs Are Impacting Canadian Travel
With the recent tariffs imposed by the United States, Canadian travelers are beginning to rethink their plans. We know the whole situation can be stressful but take two minutes to read this and you'll get a brand new perspective! We have reached out to travel & currencies experts at International Currency Exchange (ICE) and have some key advices for you!
1. Explore New Destinations
The good news is that the world is full of exciting places to visit, and some destinations are now more affordable than a trip to the U.S. With fluctuating airfare prices and package deals, you might find that traveling elsewhere provides better value for your money. Here are the top five destinations for Canadians in 2025 (excluding the United States) + some financial advices to consider:
Portugal – Beautiful coastlines, historic cities, and affordable food and accommodations make Portugal a top choice.
Watch for the right ATM’s and bring some cash.
If you must exchange money in Portugal, use official banks like Millennium BCP, Santander, or Caixa Geral de Depósitos. ATM Euronet ATMs (avoid blue & yellow machines) charge incredibly high fees and force you to accept poor exchange rates; instead, use Multibanco ATMs (use gray/black machines).
Avoid common scams such as fake charity workers.
Scammers may approach you with a clipboard asking for signatures to support a cause, but then they will demand a donation. Politely decline and walk away.
Beware of restaurant overcharging:
Some tourist restaurants add hidden charges for bread, olives, or seating fees. Ask when you arrive, and always check your bill before paying!
Mexico – Sun, sand, and rich culture at budget-friendly prices, especially with all-inclusive vacation packages.
Watch out for rigged ATMs: Some ATMs, especially in Cancun and Playa del Carmen, are equipped with card skimmers. To protect your funds, always use ATMs inside banks or well-lit areas.
Beware of the taxi fare trick: Some taxi drivers claim their meter is "broken" and charge inflated fares. Please go ahead and negotiate and agree on a price before getting in.
Small bills work magic: Even at all-inclusive resorts, bringing small bills for tips can go a long way. A few dollars in local currency or USD for bartenders, housekeeping, and waitstaff can lead to better service, faster drinks, and extra attention—making your stay even more enjoyable for a few dollars. Using currency online ordering services such as ICE Click & Collect, you can always send a request for small denominations.
Fake bill replacement: Some vendors may swap your actual bill with a fake one and claim you paid with counterfeit money. To avoid this, bend a corner of your bill before handing it over—if they try to return a fake, you’ll know it’s not yours!
Japan – While it may seem far, great airline deals and an incredible cultural experience make it a must-visit.
It's better to use cash in Japan: Japan uses the Japanese Yen (JPY) and many businesses prefer cash so bring enough JPY with you. Cash remains king in Japan, especially in small towns, temples, shrines, and markets. It's recommended to carry at least ¥10,000 to ¥20,000 ($90 to $180 CAD) in cash for daily expenses.
Watch out for airport kiosks rates: Avoid exchanging money at Japanese airport kiosks, as they offer unfavorable rates. Instead,exchange in Canada to secure better rates before departure.
Costa Rica – A paradise for nature lovers with affordable eco-tourism and adventure activities.
Currency Exchange Scams: Currency exchange booths at Juan Santamaría International Airport (San José) and Daniel Oduber Quirós Airport (Liberia) offer poor rates and high fees. To save money, familiarize yourself with colon exchange rates and learn the local currency before your trip. Use ICE Click and Collect.
Shortchanging at Exchange Counters: Some exchange booths purposely miscount money or substitute lower-value bills, particularly in tourist areas. Always double-check your cash before leaving.
USD Overcharging Trick: Although USD and Costa Rican Colónes (CRC) are accepted, some vendors apply unfavorable exchange rates when accepting U.S. dollars. Always verify the official rate before making payments in U.S. dollars.
Greece – Stunning islands, delicious food, and a surprisingly affordable travel experience outside peak season.
Overpriced Taxi Rides: Some taxi drivers in Athens may “forget” to turn on the meter or may charge double the actual fare. Consider using ride-hailing apps or insist on the meter being used before the ride begins.
Friendship Bracelet Scam: Scammers might tie a bracelet around your wrist in tourist-heavy areas and then demand payment. Politely refuse and walk away.
Get to know the cost of life of your chosen destination.
Average Burger Price:
Mexico: 100 MXN
Costa Rica: 3,200 CRC
Japan: 400 JPY
Greece 4.50 EUR
USA: 5.69 USD
Canada: 7.79 CAD
Average Price for a 25K Taxi Ride:
Mexico: 115.74 MXN
Costa Rica $26,000 CRC
Japan: 2,410 JPY
Greece 29.64 EUR
USA: $47.50 USD
Canada: $38.00 CAD
2. Get Your Currency in Canada to Save on Exchange Rates and Commissions
One often overlooked travel expense is currency exchange. Whether you’re visiting Europe, Asia, or South America, getting your currency at the best rate can make a significant difference in your overall travel budget.
Get your currency from a recognised fx company such as ICE which offers competitive exchange rates and lower commission fees compared to abroad airport kiosks or credit card transactions abroad. By securing your foreign currency before departure, you’ll avoid hidden fees and unfavorable exchange rates when withdrawing money at your destination. It’s a simple yet effective way to stretch your travel budget further.
3 Reasons Why Cash is King:
Accepted everywhere.
Easier to budget.
Know what the exchange rate is and avoid hidden fees.
3. If You Must Go to the States, Plan Your Finances Wisely
For those who still need to travel to the U.S., there are smart financial strategies to minimize the impact of tariffs and additional costs. One key tip is to purchase your U.S. dollars beforehand and use cash whenever possible. This helps avoid unfavorable exchange rates and hidden fees when using credit or debit cards.
Additionally, be aware of certain goods that might be subject to tariffs when returning to Canada. Items such as electronics, clothing, and even certain food products could see price increases due to trade policies. By planning ahead and making strategic purchases, you can avoid unexpected costs at the border.
Travel Smart in a Changing Economic Climate
While the U.S. has traditionally been a top destination for Canadians, the ongoing trade conflict between Canada and the U.S. offers an opportunity to explore new travel options. By selecting alternative destinations, managing your currency wisely, and making informed spending choices, you can continue to enjoy smooth and cost-effective travel experiences.
Planning and being financially savvy will ensure a smooth and enjoyable trip no matter where your journey takes you. At ICE, we are here to help—so you can focus on creating unforgettable travel memories.
Interested in other destinations?
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