A recent forecast by Tourism Economics has downgraded its outlook on international travel to the US, predicting a 5.1% decline in visits and an 11% drop in spending by foreign tourists. The decline is attributed to President Trump’s “America first” stance, which has led to a global backlash due to tariffs and friendlier approach towards Russia.
The firm’s president, Adam Sacks, said the situation has worsened since the report was released, with some organizations feeling pressure to avoid hosting events in the US or sending employees there. This has resulted in reduced business travel, particularly from Canada and Mexico, where travelers have canceled plans due to Trump’s tariffs and demands.
Travel from Western Europe is also at risk due to tariffs and concerns over the administration’s alignment with Russia. The number of foreign visitors to the US fell 2.4% last month compared to a year ago, with declines in travel from Africa, Central America, and Asia. China saw an 11% drop in visitors.
The decline in international travel is expected to have negative consequences for US economic growth, as tariffs and mass federal layoffs create economic uncertainty. The trade deficit is likely to widen, and the Atlanta Fed’s GDP tracker has shifted into negative territory for the first quarter.
While some declines in foreign visitors were seen during Trump’s first term, this decline is more pronounced due to the aggressive nature of his tariffs and lack of plans to back down. Major tourism events such as the World Cup and Summer Olympics may be affected by the US’s reputation.
Source: https://fortune.com/2025/03/17/foreign-tourism-us-forecast-trump-tariffs-trade-war-russia-ukraine-war