Since Donald Trump threatened to impose 25% tariffs on Canada upon becoming president, the Canadian dollar has fallen to its lowest level in four years and continues its slide against the US dollar.
Also read: 7 destinations where the Canadian dollar is strong and allows you to travel for less
Causing shock waves in the federal and provincial political sphere as well as among economists, this statement from Donald Trump has sowed uncertainty regarding trade relations between Canada and the United States and is already having a direct impact on your wallet. With the loonie depreciating against the greenback, trips south of the border cost a lot more.
And it’s not the only destination where the exchange rate increases your expenses. To travel with full knowledge of the facts, here is everything you need to know about countries where the Canadian dollar is weaker.
How much is the Canadian dollar compared to the American dollar?
When Donald Trump talked about imposing 25% tariffs on all Canadian and Mexican products exported to the United States last November, the Canadian dollar fell to 70.6 US cents. The last time the loonie was this low against the US dollar was in April 2020, at the very beginning of the COVID-19 pandemic.
However, the depreciation did not stop there. Since mid-December 2024, the value of the Canadian dollar has hovered below 70¢ US. As of January 7, 2025, it stood at USD 0.69654.
How much do you have to pay to travel to the United States depending on the exchange rate?
At the time of publishing this, the exchange rate is approximately 1 USD = 1.43588 CAD or conversely 1 CAD = 0.69654 USD.
This means that to get one American dollar, you have to pay $1.44 Canadian. So you can expect to spend almost $45 more for every $100 spent in the United States. Your trip may therefore cost you a lot more than you would have thought.
What are the other destinations where the US dollar is used?
If the Canadian dollar has lost value against the US dollar, know that the consequences are not limited to travel to the United States. Indeed, many countries adopt the US dollar as their currency.
Here are the countries where the US dollar (USD) is the main currency:
- Ecuador
- Salvador
- Panama
- Timor oriental
- Zimbabwe
- Marshall Islands
- Micronesia
- Palaos
- Turks and Caicos Islands
- British Virgin Islands
- BES Islands (Bonaire, Sint Eustatius and Saba) – Netherlands
Other destinations use the US dollar to complement their local currency.
How much do you have to pay to travel in Europe depending on the exchange rate?
Remember that fluctuations in the Canadian dollar can depend on many factors specific to each currency pair and each economy. This is why the rather tense trade relations currently between the United States and Canada may have a direct link to the fall of the loonie against the American dollar.
However, the exchange rate with the Euro, the currency of the majority of European countries, has also shown signs of weakness recently, including a drop to 0.664122 euros on December 18.
As of January 7, 2025, the exchange rate is 1 CAD = 0.673242 EUR. So you have to spend 148.52 CAD to reach 100 euros.
Where are other destinations where the Canadian dollar is currently weak?
As of January 7, 2025, the loonie (CAD) shows notable weakness against several major currencies, thus influencing the purchasing power of Canadians traveling abroad. Among the destinations where this depreciation is particularly significant, we include the United Kingdom where you have to pay $179.24 CAD to get £100, as well as in Switzerland where the exchange rate costs you $157.91 CAD for get 100 Swiss Francs.
Note that the exchange rate is just one factor among others to consider in your travel budget, as the cost of living in each country can also make a big difference. A favorable rate may be less attractive in a country where everything is expensive, while a less favorable rate may be offset in a more affordable destination.
It is therefore important to inform yourself well before booking.
