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International travelers are turning away from the United States in increasing numbers as President Donald Trump’s trade policies and rhetoric spark boycotts and economic backlash. The effects are being felt most sharply from traditional U.S. allies like Canada, the United Kingdom, and Germany, where travel numbers have seen steep declines.
A Goldman Sachs report warns that these combined effects — reduced foreign tourism and canceled purchases of U.S. goods — could slash as much as $90 billion from the American economy this year. That figure includes potential losses in GDP growth and hits to sectors reliant on international spending.
Canadian and European Travel Plummets
Tourism from Canada has seen a dramatic pullback, with U.S. Customs and Border Protection data showing a 12.5% drop in February and 18% in March in year-over-year traffic at northern border crossings. The plunge follows Trump’s direct trade attacks and public remarks suggesting Canada could become the “51st state” of the U.S.
Travel from Western Europe is also declining. According to the National Travel and Tourism Office, March tourism fell 12%, with even steeper drops from key nations: up to 29% from the U.K. and Germany.
“Multiple data sources are pointing at a slowdown — and there are lots of anecdotes that point to an even more severe slowdown,” said Jan Freitag of STR Global and CoStar Group.
Economic Ripple Effects Could Be Far-Reaching
Goldman Sachs analysts wrote that foreign sentiment against the U.S., combined with boycotts of American products, could impose a “modest drag on GDP growth” in 2025, particularly via tourism.
“Although small, this headwind provides another reason… why U.S. GDP growth will likely underperform consensus expectations in 2025,” the March 31 note said.
Tourism Economics President Adam Sacks said damage to the U.S. reputation among longtime allies may not be easily reversible.
“It will take time for things to settle and for people to re-warm toward the U.S.,” he said.
Tourism Leaders Warn of “Snowball Effect”
While cities like Miami and Niagara Falls report no immediate collapse in bookings, tourism officials remain cautious.
David Whitaker, head of the Greater Miami Convention & Visitors Bureau, noted that peak travel season largely concluded before the policy effects took full hold, but he cautioned:
“Ask me again in May.”
John Percy, CEO of Destination Niagara USA, emphasized the broader consequences:
“Any reduced spending would ripple through western New York communities in the form of reduced tax revenue that helps pay for essential services such as police and fire.”
Trade War and Tourism: A Risky Combo
Trump’s tariffs on European steel, aluminum, and autos, along with his now-paused push for expanded EU duties, have further eroded goodwill. Even though some Canadian and Mexican imports were exempted from 25% tariffs, public sentiment — and travel behavior — appears to be shifting fast.
With analysts and officials warning that the effects may deepen throughout 2025, the Trump administration may face increasing pressure from domestic tourism sectors, which are bracing for more cancellations and economic strain.
