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US Tariffs and Immigration Policies Drive 9% Drop in Foreign Tourism

Higher duties, stricter screenings, a strong dollar are driving a downturn in bookings.

File photo: travelers make their way through a TSA security checkpoint at Denver International Airport.
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Overview

  • International arrivals to the United States are projected to fall by about 9% in 2025, cutting international visitor spending by $8.5 billion to $12.5 billion.
  • Hotel bookings from Canada, Mexico and Japan have plunged by double digits following President Trump’s tariffs on their exports, according to Trivago.
  • Tougher border controls and enhanced immigration checks have raised safety fears, deterring prospective travelers as noted by the U.S. Travel Association.
  • A strong U.S. dollar has made American travel more expensive for foreigners, amplifying declines in European and Canadian demand.
  • Some countries are bucking the trend: arrivals from Argentina, Israel, Italy and Spain have risen, while U.S. and U.K. tourists increasingly opt for domestic trips.