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Trump Policies Drive Sharp Decline in U.S. Tourism, Threatening Economic Outlook

Steep tariffs, safety concerns, and negative international perceptions have led to a 70% drop in Canadian travel and downgraded tourism forecasts for 2025.

Runners pass by the stars along Hollywood Blvd during the 40th LA Marathon on Sunday, March 16, 2025. Thousands of runners hit the pavement from Dodger Stadium to Century City in the 40th running of the marathon. (Photo by David Crane, Los Angeles Daily News/SCNG)
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Overview

  • International tourism to the U.S. is plummeting, with Canadian travel down 70% year-over-year, as tariffs and contentious policies deter visitors.
  • Tourism Economics has revised its 2025 forecast from an 8.8% growth to a 5.1% decline, signaling a significant economic impact.
  • Airlines are cutting flights as demand from key markets like Canada and Europe continues to fall, affecting the broader travel industry.
  • Safety concerns, including reduced air traffic controller staffing and reports of plane accidents, are further undermining confidence in U.S. travel.
  • Negative global perceptions of the U.S., fueled by diplomatic rhetoric and updated travel advisories, are deterring tourists from Europe and beyond.