The short answer:

According to Statistics Canada, the gulf between domestic and international fees is significant. In the 2022-2023 academic year, the average domestic student in Canada paid $6,834 in tuition. By contrast, the average international student paid nearly six times that amount at $36,123.

The funding model for universities is reliant on international students to make up for budget deficiencies. Frankly, if the feds are going to implement a cap they ought to consider if they should fill the funding gap, at least temporarily.