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Tariff2 Tariff Canadian travellers heading to the United States will once again have to pay a $5.50 levy.

Flying to the U.S.? Get ready to pay $5.50 tax

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CTV National News Travellers express anger at new tax
Canadians heading south of the border are going to take a direct hit in their wallets if they arrive by air or sea. Richard Madan gathers reaction from travellers and politicians in Ottawa.

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Tariff2 Tariff Canadian travellers heading to the United States will once again have to pay a $5.50 levy.

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Reciprocate the charge and I'm sure it will go away soon enough.

mik101

Flying to the U.S.? Get ready to pay $5.50 tax

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Flying to the U.S.? Get ready to pay $5.50 tax

Date: Tue. Oct. 25 2011 11:44 AM ET

Canadian travellers heading to the United States will once again have to pay a $5.50 levy when they enter the country by air or sea.

The return of the tax comes as Washington signs a new free trade deal with Colombia, which has a provision that does not allow tariff exemptions for travellers from the Caribbean, Mexico and Canada.

The trade deal was passed last Friday, leaving Canadian officials like International Trade Minister Ed Fast disappointed.

"Raising taxes at the border just raises costs on consumers," Fast said in a statement. "Canadian officials have raised concerns about the removal of this exemption at the highest level. We will continue to raise Canada's concerns with U.S. lawmakers."

It wasn't immediately clear when the charge will go into effect, but the administration of U.S. President Barack Obama has been analyzing its 2012 budget shortfalls.

The charge exemption was brought into effect in 1997 under provisions of the North American Free Trade Agreement.

But with the U.S. facing a national debt of $14 trillion, Washington is looking for ways to cut costs and increase revenues.

Still, critics say that the new tax shows that the Conservative government isn't doing enough to represent Canada's interests in Washington.

"When it comes to defending the interests of Canadians, Conservatives have shown they cannot be trusted," said Robert Chisholm, who is the NDP's international trade critic.

Around 7 million Canadians fly to the U.S. annually, with thousands arriving by boat aboard ferries along the coasts and in the Great Lake region.

Prime Minister Stephen Harper publicly assailed the tariff when the spectre of it was raised earlier this year.

However, as the surcharge makes its comeback, the NDP critic suggested that Harper's Conservatives have been sleeping on the job.

"I would suggest they're not paying attention ... they're not negotiating hard, they're not standing up for Canadians," he told The Canadian Press.

U.S. Ambassador David Jacobson urged Canadians not to take the fee to heart, and he defended the Obama administration's decision to resurrect it.

"The elimination of the exemption was necessitated by the budget situation in my country," he said.

"It is paid by American citizens and foreign nationals alike just like Canadian citizens and non-Canadian citizens pay fees at Canadian airports .... This fee is not in any way an action against Canada and will not have any effect on the progress of the ongoing discussions surrounding the Beyond the Border initiative."

The initiative in which Jacobson referred is a new, sweeping agreement on border security that will result in Canada paying $1 billion for new facilities.

The tariff comes as Canada continues to lobby against U.S. protectionism in Washington, part of $447 billion in jobs legislation in the capital.

In a speech last week in Ottawa, Jacobson said any new "Buy American" provisions in Washington would not affect the Canadian economy compared to the ongoing economic malaise south of the border.

Jacobson added that the best way to help the Canadian economy would be to ensure that growth resumes in the U.S.

Comments are now closed for this story

Andrina
said
0 0

Illegal aliens will still be allowed to sneak into the US for free.


jafajack
said
0 0

So we add on the same amount to American visitors to Canada. If they increase so do we. If they eliminate so do we. Tit for Tat. I am one Canuck who is totally fed up with our government continually caving in to the U.S. and wish for once we would stand on our own two feet and say NO


J.C.
said
0 0

Personally I think the worst thing we ever did was enter a free trade agreement with the US as it seems they do not honour their commitments anyway. Are they not always fighting such trade agreements as lumber, beef etc? I wish we had never entered into NAFTA as we have lost so many industries since it came into effect. I am glad I do not travel to the USA. They want everyone else to pay their debts for them. In other words they want their cake and to eat it too. This will likely only be thesecond step (first was "buy American only) as they will continue looking for more as always, So much for friendship!!


Morgan
said
0 0

Reading most of the comments posted here I get the immpression that $5.50 is less than a coffee, is less than a lunch a McDo, etc. It's not the amount, it's the principle!! It could be $1.00, that's not the point, nor is not going to the US. Why should we be charged at all!!! As has been mentioned, it's their debt, then let te US citizens pay it off. I can't pon off my debt on my neighbor, so why should they?


peter
said
0 0

There is a whole world out there that does like Canadians and Canadian dollars and it is about time we started to explore that. Bye, bye America.


bikerborz
said
0 0

To all the people saying "It's no big deal; it's ONLY $5.50!", let me say this: where does it end? They have specific ticket fees, then it's this surcharge, and that tax, and this other cover charge... if we don't stand against it, soon it'll be the cost of the ticket AGAIN just in extra costs!


Ron S
said
0 0

Come now !!! I doubt the $5.50 is really anyone's issue. It is the fact that the U.S. seems to be less welcoming than before and we are feeling bullied by them.

Let's just not go there by plane or boat unless it is absolutly necessary and spend our vacation bucks at home to help our economy and not their's. I hear we have lovely places to visit from coast to coast, the people are more friendly, and we have less crime. Sounds like a win-win to me.


Michael from the real world
said
0 0

The Yanks are perfectly entitled to charge whatever they want to whomever they want.


Cambob in Toronto
said
0 0

$5.50 is less than a typical lunch at McDonalds. Perspective people! If you can afford $500 plus to fly somewhere warm, you can certainly afford the extra $5.50.


Dave, Ottawa
said
0 0

Another reason to drive to the US and fly out of a US airport. This, and the fact that fares are less than half of what they are to fly to the US out of a Canadian airport. Ottawa - Orlando, 3 people at Christmas. $1700 - $2200. Plattsburgh, NY - Lakeland/Orlando, $747, direct, round trip, all in.


JD, Ontario
said
0 0

One other thing that many might not tie in to this story. Costs for flights out of U.S. airports already have a distinct price advantage over Canadian airports. For ANY flight even just landing and taking off from a U.S. airport this fee will take effect. As the costs to fly out of Canadian airports rise further the number of Canadians that will choose to fly from U.S. airports will only increase. So it will be Buy American for them; and Fly American for those of us that can.


MrMike
said
0 0

@oddmelin We do need the world as if things were done the home made way.. prices would go up. Canadians don't work here for 8 bucks an hour anymore. Everyone wants a big piece of the pie this is why a lot of jobs are lost as after transportation costs and everything it ends up being CHEAPER to buy it else ware.


Steveo
said
0 0

Hey thats cool I'll pay $5.50, but maybe Canada should be charging all americans $10 to enter our land and then $20 to go back home!


Suzie
said
0 0

The US is allowed to charge whatever they wish. It is their country. Don't travel there if you don't want to pay the fee. Look at us. Our beautiful Canada charges its OWN citizens tons of fees for traveling abroad and WITHIN our own country. Stop complaining. Just enjoy the beach next time you travel abroad but take a good look at ALL the hidden fees all those hot and sunny countries charge you.


JD, Ontario
said
0 0

These new taxes are not the beginning, nor will they be the end. The "buy American" clause, border security costs and a U.S. that is on a path of going broke. Canada's importance to the U.S. has been largely ignored for self serving reasons by the Administration going back to G.W. Bush, and all our PM has been able to do is meet for photo ops, look clumsy and accomplish nothing. Time for Canada to look elsewhere to export our vast resources and make the U.S. sit up and take notice. Will our Parliamentarians dare? Perhaps, but they will need to grow a backbone first.


Isaac
said
0 0

Another reason to fly out of BUFFALO! I have been doing it for years and have saved a few thousand!Yah its a drive but worth it


Steve-O
said
0 0

Erm... $5.50 would hardly be noticable buried in the total amount of an airline or boat ticket. Not to mention that a pint of beer in a Canadian pub costs more. And what do the majority of Canadians do with their money.. travel or drink?

Nonetheless, Canada should just buy the US and be done with it. No more taxes/duties and easier travel to warmer climates.


Gerhard
said
0 0

I see a lot of comments demanding we retaliate but consider this: Every Canadian that doesn't go there is money that didn't contribute to their economy but if we do nothing and Americans still come here we still make money.


Joey Sambucca
said
0 0

Why does everyone keep suggesting we tax them too? To discourage Americans from coming to Canada and spending their money or just because you want to pay tax to re-enter Canada? Geez it's $5.50... just bought a ticket to London today and the UK tax was $248.26... people just like to complain...


CalgaryBrad
said
0 0

It's $5.50 you whiners. Big deal. If you don't like it don't go. The only time I ever go to the US is for business and then my company pays it, so I don't care. Get over it and start complaining about something that actually means something, like pollution and homelessness and poor education or medical facilities. Complain about the millions around the world who starve to death every day. Complain about the poor justice system and its light treatment of criminals. Complain about drink drivers killing people in completely avoidable situations. Do NOT complain about a measly $5.50 when you have a choice not to pay by not going.


Unfortunately
said
0 0

Unfortunately, my holiday to the USA was bought and paid for months ago. Had I known the way things were going to go I would have changed my destination. The wife and I have already discussed the matter and are booking next year's holiday anywhere, but the USA. We may even stay in Canada for the first time in years. Had enough of the USA trying to pay their debts off by using Canadian travellers. I have a good friend whose wife is american. Boy are they scared about the IRS coming after her. She never worked a day in the states, but they want to fine her for not filing US income tax. Again, the excuse is , "We need the money". The USA is broke. After Greece falls the EU will fall. Then the USA will be next. Unfortunately, they will suck Canada down with them.


oddmelin
said
0 0

When will our government take their head out of the sand or a-- and stick up for CANADA -- WE do not need the USA the USA needs us all our raw products go to the USA to get produced--its about time we started to keep all raw products here. to make jobs for Canadians--- with cheaper gas -- we do not need the world we are a land of plenty


Jason Calgary
said
0 0

Wonder how long it will take them to realize that they will be losing more in Canadian spending in the US than they will bring in from this levy. Not that the $5.50 is a lot of money but if each Canadian ends up spending about $300 per day in the States (hotel, food, rental, gas, entertainment), and 1,000 'righteous' Canadians refuse to fly there then that possible $5,500 in revenue just cost the US economy $300,000 per day. Love political math.


Mike in Ottawa
said
0 0

come on people, it's only 5.50$... Have you ever travelled within Canada by plan,,, taxes are way more then 5.50$...And for the NDP to critic the conservative, what a farce... We had a liberal goverment that bashed the US for 12 years and never heard the NDP complain about that... Also wasn't the NDP complaining for the fact that the conservative are working on opening up the borders? NPS are just double faced lyers!


Just sayin'
said
0 0

@ URU - Don't travel to the US because you have the same in TO... Wow ignorance must be bliss, huh? If you do what you always do you'll get what you always got! Try expanding your horizons just a little. It won't hurt ya! I can guarantee the US said if you can afford to fly to the US, out of Toronto Airport especially, then you can afford a $5.50 tax.


Robert B
said
0 0

Its like Cuba except it costs 25.00 to LEAVE Cuba not 5.50. Those Americans again they've got it all backwards!!! Or not. Curiosity,, How much does it costs the Americans to come to Canada? Nothing you say, well lets reciprecate OK? Heck We could use more revenue, and it wouldn't cost us taxpayers anything.


NoContest
said
0 0

The states doesn't do much right anymore.


Art in Alberta
said
0 0

A sweeping agreement on border security is going to cost us $1B? Let's impliment our own fees for budgetary reasons to the Americans. Now that their dollar is seeping back up in value they'll be flooding our border towns again looking for deals. Charge them!!!!


Roy
said
0 0

Return the favor by imposing the same on their citizens or just add more to the price of oil.


Paul Anderson
said
0 0

if they want to charge a tax on flights to the US , then what canada should do is impose maybe a 2.00 tax of our own to any american flights that want to come to canada. it maybe unfair but we have to make money aswell. they're propbly only doing this because thier so much in dept.


Ray
said
0 0

Do what I trying to do. Go see the world and stay out of America. People can complaint all they want but at the end of day, if this bother you it just goes to show that you yourself need to understand there is more to the world than traveling to America. Europe is great, Japan is cool, Caribbean has the sun, and South America has culture. Try something new and stop worrying about American Polices.


Sam
said
0 0

Well I hope Canada puts pressure on Washington to stop this charge, its a slap in the face. So much trade is done between the 2 countries. Otherwise return the favour and charge them $5.50 to enter Canada, that will make them think twice. Canada is soft when it comes to this, but the US doesnt care about its neighbours, so stick it to them.


Tom Bouchard
said
0 0

The general consensus here for the most part is that Canadians want the same tax applied to US travellers entering Canada or our airspace. So, saying that, vote a gov't in to place that listens to the people. Explore our own country for a change, and as far as warm places go to visit, check the new "top ten" places to vist. Cape Breton is rated #3, again.


Realy Check 1
said
0 0

THere is a lot of venom in these comments. People, do you realize that making the statement to Tax Americans coming to Canada would severely affect the Canadian economy??? Americans are very 'attitude' oriented and would tell Canadians to %$@-off. Canada needs the thousands of American travellers more than they need Canada's lesser amount. Tax your tourist and they won't come. Canadians are more likely than Americans to accept extra charges. It is time people thought more before commenting and showing how little they know.


Garry
said
0 0

Imagine my surprise at finding that I'm not doing the US a favor by visiting and spending my money there- now I'm to be charged for the "privilege". I think I will just go elsewhere. That should do it.


DanInAshton
said
0 0

It's unfortunate how nobody seems to care how much commercial traffic pays per load to cross into the U.S. Call it a tax if you want, it's a processing fee that registers information entering the country. For all we know, there is a fee coming into Canada and is just collected within the cost of something else you're paying for...


trunorth
said
0 0

Our Yankee neighbours just don't know and don't care who their friend are, do they? It will be a frosty Friday before I wander across that border again. In the meantime, they can kiss me where the sun don't shine.


Katie
said
0 0

Canadians have got to realize that Democrat governments in the U.S. are never good for our country. They, more than Republicans are far more likely to impose protectionist policies.


fctlmn
said
0 0

WoW the Bastian of Democracy now dictates how one of the 'used-to-be' great trading partners shall act. Of course the USA could have muscled Columbia out of that clause had they wanted to. Easy out "We had to do it" all the while milking their buggest bunch of travellers Canadian Tourists and business people, Surely we can get the EU to force us to sell electricity to the US at double what we charge now (subsidized by regular rate payers here) Why build that pipeline to Texas to refine our oil refine it here and sell them the refined products. AND stop going there. Buy from RONA instead of LOWES, Harveys instead of McD etc


Dean in Abby
said
0 0

Whatever they charge us should also be charged to them. They are acting with protectionist ideals and so they should face the same. Also, we should stop selling raw logs to them.


DJKooper
said
0 0

If your don't like the new tax then just don't go to the US. Not that hard. For business people it is just another tax right off. Best way to show dislike for the tax is just by not going there at all and spend any money at all.


George V.
said
0 0

What clout does Canada have in Washington, typical N.D.P. rhetoric, when they want to charge taxes, they will do what they want and when they want. If you don't want to pay it than don't go. The charge is because of the Columbia free trade agreement. This is a game that two can and should play, it should be reciprocal.


URU
said
0 0

So just travel less or just don't travel to the US. There's really nothing to see anyways, its all the same crap you can see here in TO. Why pay to go else where to see what we've already have here.


Northern Rob
said
0 0

If we are to be charged for entering and spending our money in the states then we should also charge them for coming here. Maybe we should also be chargeing an extra fee for every bit of oil (oil sands products), wood, grain or other products that enters the states from Canada. Or not ship it at all. We could use it here and our prices would go down on alot of items because we don't have to buy it back. The states have messed up there own funds and are basically stealing it back from other contries.


Deborahann
said
0 0

This is not right. Free trade ya right, its not our fault they went into heavy debt. I hope Harper interviens and fights this one, and if not we need to charge Americans comming into Canada then. See how they like it.


TicTak
said
0 0

Maybe if the Americans would stop wars they create thier debt would not be out of control. So, not only ask other countries including Canada to help fight these wars, let's get them to pay $$ to help us out of a massive dept the good ol' USA did to themselves. Time for Canada to grow some b@!^%s


tom
said
0 0

Charge every visitor to Canada from USA a $ 7. 50 tax and the rest of Canadians stop going to the USA, let them suffer, those greedy scambucks. Keep the bussiness rising here in Canada and creat jobs in Canada


Lissa
said
0 0

U.S. Ambassador David Jacobson urged Canadians not to take the fee to heart, and he defended the Obama administration's decision to resurrect it.

"The elimination of the exemption was necessitated by the budget situation in my country," he said.

Sorry, dude, YOU and YOUR administration screwed up YOUR economy. Now you want your closest allies to clean up your mess. This is the way Obama treats his friends, I hope Cain or Romney treat us better!


Nicole
said
0 0

Just another reason why I don't need to visit the US. Everything and everyone I need are found here in Canadian borders.


joe canada
said
0 0

Just another reason to not go state side. I have not been there in 25 years. There are plenty of beautiful places in the world where you don't have to put up with the Americans crap.


Glad I drive to US
said
0 0

The US citizen is the least taxed person around. The US is so far in dept - there is no way out. Now to pay for the US economy and the US dept - what do the brilliant thinkers in Washington decide - let's tax the Canadians! Because they certainly don't want to tax a US citizen.


LM Kane
said
0 0

Protectionist for sure; Canada should respond with same.


Frank in NS
said
0 0

The "money-grubbers" will soon learn that it is not the size of the $5.50 tax, but the idea of hitting your neighbor with an additional cost, that will cost them tourist dollars. Many Canadians will be returning to the Dominican Republic and Cuba to spite the US.


Barry Carmichael
said
0 0

Try being a Canadian and entering Turkey. All other countries "Visa" charges are $15 to $30. Canadians are charged $60.00. Here is the kicker at least they charged us in US dollars, saved a couple of bucks there.


Bill Rowe
said
0 0

I know that many of you are suffering. And I know that many of you look around and see a country where not all things appear to be equal. Well, guess what? They aren't. They never have been, and I can assure you, as long as liberty and freedom remain supreme, they never will be. Let's be honest - looking for equality is a democracy is like looking for love in a wh0re house. You might see something that comes close, but in the end, that dog don't hunt. I believe our best hope for a true recovery will come not from a temptation to make all things more equal, but rather, to make all things more possible. To do that, we must rethink everything we currently hold dear in our modern economy, beginning with our obscene relationship with Debt and Spending. These are the true enemies of prosperity - not your neighbour. Our problems today were not caused by the success of others. They were caused by the mistaken belief that we could have some things we wanted - but in fact, could simply not afford. Isn't it obvious? There is but one logical explanation. President Obama wants people to see "the rich" as the problem - not him, not spending, not debt, and not some other failed policy. He wants the Rich to be the scapegoat.


mik101
said
0 0

Reciprocate the charge and I'm sure it will go away soon enough.


Skitty
said
0 0

When I get a "free" points ticket to Florida I have to pay $132 for each person in Airport Improvement Fees at Pearson (7 Billion dollar moneypit) and other taxes etc. These apply to revenue tickets as well of course. On a $229 ticket to Victoria I had to pay half again as much in fees. Why are travellers taxed to death?


Jim in Ottawa
said
0 0

The US government has become like a crack addict: spending every penny it can to support its addiction to bigger government. It can't figure out a way to either cut its spending or raise enough revenue from its own citizens so its now taken things to the next level and has started taxing non-citizens! I cannot think of a worse example of taxation without representation-- a concept that goes against the very foundation of their republic! Uncle Sam: you're sick in the head man! You've gotta get some counselling for your spending problem, burn your credit cards and start cutting back! You're not only hurting yourself, but like the crack addict, you're starting to negatively impact your family and friends around you! And like the crack addict family member you're driving us away from you--we might start avoiding you because we care about you but you just don't listen! (And as for the NDP's comments about the Canadian government not doing enough to fight this--please: get a grip NDP. The NDP has never seen a tax increase they didn't like. Its a bit disingenuous for the NDP to be lecturing anyone on tax increases).


Jackie Barrett
said
0 0

Because USA's free trade deal with Colombia tells thems to set tariffs against Canada, Mexico, and the Caribbean, the effected countries should challenge both USA and Colombia before the WTO as it amounts to extortion. Free trade deals are OK as long as countries like Canada are not punished for it.Since Colombia is a minor player in the world economy, don't tell us what to do.


Lisa
said
0 0

That's nothing compared to the $25 fee that is charged by Toronto Airport when you fly out of there. Perhaps our government needs to put pressure on our domestic airports that seem unable to work within a budget and continuously gouge travellers and spend less time worrying about the US.


MAE in Ontario
said
0 0

Oh, so America is in bad debt and according to the US ambasador we are not to take it to heart that they want Canadians to help pay off their debt. Ya right!!! You darn right Canadians will take it to heart


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