Trump's trade war costs US tourism industry $64bn as foreign visitors cancel trips

SACRAMENTO, UNITED STATES: Foreign visitors are cancelling trips to the United States in record numbers as US President Donald Trump's trade war escalates, potentially costing the US tourism industry up to $64 billion this year.

Tourism Economics, an industry research firm, projected a 9.4% decline in international visitors to the United States in 2025 in its report released on 3 April, a dramatic reversal from the 9% increase originally forecast at the beginning of the year. Tourism Economics President Adam Sacks stated that each policy development and rhetorical statement from the administration has a direct impact on international travel to the US.

Recent data from the US government's National Travel and Tourism Office confirmed the trend, showing an 11.6% decline in overseas visits to the United States in March compared to last year. Cross-border trips from Canada by car fell by 24% in February, according to Tourism Economics data.

Political and economic tensions between Canada and the United States under the Trump administration have led many Canadians to sell their American vacation properties and cancel travel plans, according to media reports. Destinations such as Palm Springs, Florida, and Arizona, which traditionally relied on Canadian "snowbirds" spending winters in the United States, have been affected. The Wall Street Journal reported that Washington's recent policies, including added tariffs, stricter border controls, and dismissive rhetoric, have made Canadians feel unwelcome.

Real estate markets have also felt the impact, with financial concerns such as unfavourable exchange rates accelerating sales of Canadian-owned US properties. Some Canadians are boycotting the United States in protest. Herbert Bopp, a German native living in Canada, stated on his blog on 4 April that he has halted his US travel plans due to Trump's policies and rhetoric.

European travellers are also reconsidering visits to the United States. Several European countries have updated their travel advisories, with the British Foreign Office warning citizens that they "may be liable to arrest or detention" if they break US entry rules.

California, the top travel destination in the United States, saw international visitors spend $26.5 billion last year, a 17.5% increase over 2023, according to Visit California. However, growth is slowing, with projections for 2025 revised to 2.3% annual growth, down from an earlier forecast of 6.2%. In Los Angeles, where tourism supports over half a million jobs, businesses are already experiencing a downturn. Moses Marjanian, owner of Hollywood City Tours, reported a 30% decline in business compared to last year.

Social media sentiment reflects widespread reluctance among foreigners to visit the United States under current conditions. Tourism officials are working to counter negative perceptions but face challenges due to global backlash against Trump's policies. Visit California stated that all visitors are welcomed and respected, but some hotel brands have paused marketing campaigns for US-based properties due to online criticism.

Experts warn that these trends could have lasting implications beyond this year. With major global events such as the World Cup in 2026 and the Summer Olympics in Los Angeles in 2028 approaching, restoring international confidence in travelling to America will be crucial. Major travel businesses are already feeling the impact, with Delta Air Lines CEO Ed Bastian stating that Trump's trade policy is the "wrong approach" and is harming both leisure and corporate bookings. The United States Tour Operators Association (USTOA) has warned that tariff hikes could destabilise the nation's tourism economy. USTOA President and CEO Terry Dale emphasised the importance of protecting an industry that supports millions of jobs and generates billions in revenue.

By RSS/Xinhua