The U.S. tourism industry is confronting a significant downturn in 2025, with projections indicating potential losses of up to $90 billion. This decline is attributed to escalating trade tensions and diplomatic strains under President Donald Trump’s administration, leading to a notable decrease in international visitors.
Canada, traditionally a major source of tourists to the U.S., has seen a sharp decline in visitor numbers. In February, Canadian tourist arrivals dropped by 12.5% compared to the previous year, with March witnessing an even steeper fall of 18%. This downturn is linked to trade disputes and controversial political remarks, including suggestions of treating Canada as the “51st state.”
Western European countries, notably the United Kingdom and Germany, are also contributing to the decline. Data from the National Travel and Tourism Office indicates a 29% year-over-year drop in March arrivals from these key markets. The decrease is associated with political friction and unfavorable perceptions of U.S. policies.
Analysts warn that the combination of reduced international travel and retaliatory consumer behavior could have long-term economic implications. Goldman Sachs forecasts that if current patterns persist, the economic toll from falling tourism and global boycotts could significantly impact the U.S. economy within the year.
The tourism sector, a vital component of the U.S. economy, is grappling with these challenges amid broader concerns about the country’s international image and diplomatic relationships. Stakeholders emphasize the need for strategic interventions to mitigate the downturn and restore confidence among global travelers.
