Trade tensions, immigration curbs, and a strong dollar drive down tourism, with the U.S. facing a $64 billion loss in 2025
Mar 24, 2025
The United States tourism industry is facing an increasingly bleak outlook as recent policy decisions by President Donald Trump stir international disapproval and economic uncertainty. What was once a projected upswing in foreign visitor numbers has now reversed, with experts forecasting a sharp decline in both arrivals and spending. Trade tensions, restrictive immigration policies, and growing antipathy toward the U.S. under the Trump administration are contributing to a downturn that could reshape the country’s tourism sector for years to come.
Key takeaways
- Sharp decline forecasted: Foreign arrivals to the U.S. are expected to fall by 5.1% in 2025, a significant shift from an earlier projection of 8.8% growth. Tourist spending is projected to decline by 10.9%.
- Negative sentiment toward U.S.: Policies and rhetoric from the Trump administration have generated global antipathy, discouraging both leisure and business travel.
- Economic & political factors: A strong dollar, rising prices, trade tariffs, and heightened global political tensions are making the U.S. a less attractive destination.
- Canada leading the pullback: Canadian tourists – the largest group of foreign visitors – are canceling trips and returning home less frequently, with a 23% year-on-year drop recorded in February.
- Potential $64 billion loss: The tourism sector could lose around $64 billion in revenue in 2025 due to declines in both international and domestic travel.
- Event hosting at risk: Immigration tightening may impact major international events hosted by the U.S., such as the 2025 Ryder Cup, 2026 FIFA World Cup, and 2026 Summer Olympics.
- Traveler sentiment split: While some tourists remain undeterred, others express caution or are opting to use alternate passports to avoid complications at U.S. borders.
- Outlook continues to worsen: Tourism experts warn that the situation may deteriorate further if current trends and policies persist.
Get the full story at AFP and The Guardian
