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Key insights from the Canada‑U.S. Economic Summit: What it means for Canada's hotel industry

On February 7, Toronto hosted the Canada-U.S. Economic Summit, bringing together business, labour, and government leaders to address key economic challenges. Among the notable speakers were Prime Minister Justin Trudeau, Transport Minister Anita Anand, Innovation, Science and Industry Minister François-Philippe Champagne, and Beth McMahon, president and CEO of the Hotel Association of Canada (HAC). STAY Magazine was proud to be in attendance, capturing critical insights and highlighting key takeaways for Canada’s hospitality sector.

February 11th, 2025

The summit’s focus on resilience, collaboration, and strategic planning emphasized the need for proactive responses to U.S. trade pressures while highlighting opportunities to strengthen Canada’s economy and foster long-term growth.

A call for unity and resilience in the face of U.S. trade pressures

Prime Minister Justin Trudeau set the tone for the summit with a call for unity and swift, decisive action. Emphasizing the importance of national resilience, Trudeau encouraged Canadian leaders to act as “Team Canada” to protect Canadian jobs and industries from emerging U.S. trade challenges. “Canadians are worried about what impact these actions will have on their jobs and the affordability of their lives,” said Trudeau. “But I know all of you leaders have their backs. Supporting each other, protecting our industries, and defending Canadian jobs is what we do best.”

Trudeau stressed a two-pronged approach: addressing immediate challenges like U.S. tariffs while preparing for potential long-term impacts. His message was clear—Canada must remain both pragmatic and forward-thinking to safeguard its economic future.

Strategic responses and defending Canadian sovereignty

Transport Minister Anita Anand reassured attendees that “Canada is free. Canada is sovereign. Canada will choose its own destiny.” She went on to outline the federal government's current initiatives to enhance internal trade and labour mobility to bolster the Canadian economy and ward off Trump's threats.

"This is not theoretical. The end state for reducing barriers to internal trade is threefold. First, to establish mutual recognition among provinces and territories across the country. Second, to significantly reduce the number of exceptions in the Canadian Free Trade Agreement. Third, to ensure greater labour mobility across the country by easing the permitting and licensing processes that workers must endure if they simply want to follow demand and work in another jurisdiction. These are three recommendations that each of the provinces and territories have already agreed to, and the premiers themselves have also empowered ministers to carry them forward. We will work through this in the next 30 days to achieve tangible results. The goal is to reduce and eliminate barriers to trade and to build a domestic economy here and now—without having to go through Donald Trump’s policies," said Anand.

Innovation, Science and Industry Minister François-Philippe Champagne pointed to Canadian sovereignty and the need to stand firm in the face of external pressures. He reminded attendees of the importance of unity, despite political differences. “We will always stand up for this country, our people, and our ability to make choices for ourselves,” he said. Affirmations that served as a reminder that, even in times of economic uncertainty, Canada remains steadfast in its pursuit of self-determination and national pride.

HAC president and CEO, Beth McMahon with Prime Minister Justin Trudeau

Beth McMahon: The hospitality sector’s role in economic resilience

Beth McMahon, president and CEO of the Hotel Association of Canada, provided critical insights into how the summit’s discussions apply to Canada’s hospitality industry. Reflecting on the event, McMahon stressed the importance of strong partnerships between business and government to tackle the industry’s key challenges and opportunities.

“Important day at the Canada-U.S. Economic Summit, where hundreds of leaders from business, trade, and policy came together to discuss Canada’s response to the very real economic threats we’re staring down,” McMahon wrote on LinkedIn.

She highlighted key themes such as infrastructure investment, removing interprovincial trade barriers, and increasing procurement opportunities—all of which have significant implications for the hotel sector. “There is momentum, commitment, and a sense of no turning back, but time is of the essence to secure Canada’s continued prosperity,” said McMahon.

Opportunities for the hospitality sector: Promoting domestic tourism

One of the most resonant themes for Canada’s hospitality industry was the emphasis on supporting local businesses and encouraging domestic tourism. Trudeau’s remarks about the growing interest in Canadian destinations like Cape Breton, Banff, and Quebec City underscore the hospitality sector’s critical role in economic resilience.

“Canadians are reflecting on where they want to spend their dollars on vacation,” said Trudeau. “By choosing Canadian destinations, they contribute directly to our national economy.”

For hoteliers, this presents an opportunity to showcase Canada’s unique offerings and strengthen connections with domestic travellers.

Prime Minister Trudeau speaks to business and organization leaders at the Canada-U.S. Economic Summit.

Innovation, Science and Industry Minister François-Philippe Champagne

Transport Minister Anita Anand. Photos by Stacey Newman.

Rising tensions: U.S. tariffs and annexation rhetoric

Trade tensions took a dramatic turn as U.S. President Donald Trump announced a 25 per cent tariff on all steel and aluminum imports, eliminating country-specific exemptions and directly impacting Canadian suppliers. Canadian officials swiftly condemned the tariffs as unjustified and prepared a strategic response.

Adding to the complexity, President Trump raised the prospect of annexing Canada as the 51st state, citing economic imbalances and security considerations. Prime Minister Trudeau and other Canadian officials dismissed the suggestion, affirming Canada’s sovereignty.

“Annexation is not on the table,” said Trudeau. “Canada’s future will always be determined by Canadians.”

Implications for the hospitality industry

For the Canadian hotel industry, the summit reinforced the need for economic resilience and diversification. The potential trade restrictions and geopolitical uncertainty make it even more crucial for hoteliers to engage with government, strengthen cross-border partnerships, and focus on local economic contributions.

Beth McMahon’s advocacy at the summit underscored the importance of sustained dialogue between the hospitality sector and policymakers. Her call for fast-tracked investments and reduced trade barriers aligns with the broader goal of building a more resilient and competitive Canadian economy.

As the Canada-U.S. Economic Summit made clear, collaboration and strategic planning will be essential for navigating the challenges ahead. For Canada’s hospitality sector, these discussions provide both a warning and an opportunity: a warning of external pressures and an opportunity to lead in promoting domestic travel, strengthening Canadian identity, and contributing to national prosperity.

Read more about the Canada-U.S. Economic Summit.

View the full list of members of the Prime Minister’s Council on Canada-U.S. Relations.

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