Visits From Canada, Germany and the United Kingdom Have Seen Significant Declines
America’s welcome mat to the world is looking a little worn. Recent data shows a sharp decline in travel to the United States, especially from close allies like Canada, the United Kingdom, and Germany. Analysts say President Donald Trump’s tariff-heavy trade policies and antagonistic rhetoric have triggered a global chill — and that chill could cost the U.S. up to $90 billion this year in lost tourism and foreign spending.
Canada and Europe Lead the Travel Retreat
Among America’s most reliable travel partners, Canada has seen the steepest fall. After being targeted by Trump’s trade restrictions and called a potential “51st state,” Canadian tourism numbers have dropped significantly — down 12.5% in February and 18% in March, according to U.S. Customs and Border Protection.
The same trend is happening across Western Europe. Travel from the UK and Germany plummeted 29% in March, while overall visitation from Western Europe saw a 12% decline — one of the largest dips on record outside of the pandemic era.
Tariffs and Hostile Rhetoric Create Economic Fallout
Trump’s tariffs on cars, car parts, steel, and aluminum have further fueled discontent. While he temporarily paused additional tariffs on the EU and spared some Canadian and Mexican goods from a 25% import duty, the damage to international sentiment appears done.
Jan Freitag, a senior VP at STR Global, summed it up: “Multiple data sources are pointing at a slowdown — and there are lots of anecdotes that point to an even more severe slowdown.”
Goldman Sachs analysts estimate that the U.S. could lose as much as $90 billion this year from fewer foreign tourists and boycott-driven pullbacks on American products.
Economic Hit Could Drag Down U.S. Growth in 2025
Goldman’s note warned that foreign pushback could apply “a modest drag” to U.S. GDP growth in 2025. Tourism, they say, is the biggest variable in that equation — and one that could underperform expectations due to lingering resentment.
“The damage has been done,” said Adam Sacks, head of Tourism Economics. Even if Trump changes his tune, rebuilding international trust will take time.
Local Tourism Hot Spots Still Holding On — For Now
Not every U.S. destination is feeling the effects yet. Miami’s tourism numbers have held steady through its peak season, buoyed by a wealthy and diverse visitor base. “Ask me again in May,” said David Whitaker of the city’s Convention & Visitors Bureau, hinting that a delayed dip may still hit.
Up north, Niagara Falls is still seeing Canadians cross the border for hockey games. But John Percy, CEO of Destination Niagara USA, warned that any slowdown in spending could ripple through local economies.
“We don’t realize the snowball effect,” he said — noting that reduced international travel doesn’t just affect hotel rooms and restaurants. It threatens the tax revenue that pays for fire departments, police services, and more.
While domestic political moves might play well to some voters, they’re pushing foreign tourists and buyers away. And the long-term economic cost of that retreat? Potentially billions.
