Foreign tourists snub Trump’s America: $90 billion blow looms as Brits, Canadians and Germans turn their backs.
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The stars and stripes may be flying high, but a huge number of international travellers are flying elsewhere at the moment – and the U.S. could be footing a whopping $90 billion bill for it. Tariffs, tantrums, and tears? Read on to find out the latest on this developing story.
A perfect storm of trade spats, sharp rhetoric, and a cold diplomatic shoulder from President Donald Trump is fuelling a dramatic plunge in global tourism to the United States – with tourists from long-time allies like the UK, Canada, and Germany giving America a wide berth.
The drop-off is more than just a few empty hotel beds – it’s a major economic threat. According to analysts at Goldman Sachs, if things keep going this way, the U.S. could haemorrhage up to $90 billion in lost revenue in 2025 from fewer visitors and international boycotts of American goods.
“Our estimates … suggest that foreign boycotts of U.S. products will likely impose a modest drag on U.S. GDP growth in 2025, mostly driven by a pullback in foreign tourism,” Goldman Sachs warned in a note to clients dated March 31.
Northern chill: Canadian tourists steer clear
Nowhere is the frostier attitude towards Trump’s America more visible than at the Canadian border. Visitors from Canada – the U.S.’s closest neighbour and formerly a top source of tourists – have dropped off dramatically. U.S. Customs and Border Protection data shows traffic from the north slumped by 12.5% in February compared to last year, and an eye-watering 18% in March.
This comes after Trump imposed trade restrictions on Canada and made jarring comments suggesting it could become “the 51st state.” It’s safe to say the maple syrup crowd didn’t take kindly to that.
Europe pulls the plug on US travel?
Across the Atlantic, the picture’s just as bleak. Western European nations – particularly Germany and the United Kingdom – have seen tourism to the U.S. take a nosedive. In March alone, travel from those two countries fell by as much as 29%. Overall, Western European visitors dropped by 12% – a record fall outside of the pandemic.
Trade wars, travel woes
The root of the problem? Trump’s tariff tirades, according to experts.
European imports like cars, steel and aluminium have been slapped with duties as high as 10%. While some second-wave tariffs were paused and Canada and Mexico were spared from the harsher 25% rates, the damage may already be done.
“The damage has been done,” said Adam Sacks, president of Tourism Economics, a division of Oxford Economics. “It will take time for things to settle and for people to re-warm toward the U.S.”
A slow thaw – or deep freeze?
Even if Trump softens his tone or lifts tariffs, it’s not clear whether the tourists will come flocking back. With global sentiment cooling and national pride taking centre stage, the U.S. may find itself left out in the cold for seasons to come.
Until then, the only thing rising faster than Trump’s tariffs might be the economic losses – and that $90 billion cloud hanging over 2025.
Stay tuned for more.
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