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How Trump’s Policies Are Hurting U.S. Tourism—And Why the Damage Could Last

International tourism to the United States is facing a steep decline under President Trump’s second term, and experts warn the repercussions could extend far beyond his administration. A recent Forbes report by travel journalist Suzanne Rowan Kelleher highlights how tariffs, aggressive rhetoric, and reports of foreign travelers being detained at U.S. borders are driving visitors away. The economic impact is severe, with billions in losses and thousands of jobs at risk.

The Shifting Numbers

Initial forecasts from Tourism Economics predicted a 9% increase in international travel to the U.S. in 2025. Instead, the latest data shows a 5% decline—with signs of further drops ahead. Canada, traditionally a reliable source of visitors, has seen a staggering 70% drop in airline bookings to the U.S. in early 2025. Even cross-border road trips have decreased by nearly 25%, according to Statistics Canada.

Mexico, another key market, is also pulling back. Air travel from Mexico fell 6% year-over-year in February. With Trump’s trade disputes escalating—including tensions with the EU—European travelers may hesitate to attend major events like the 2026 FIFA World Cup or the 2028 Olympics.

A Long-Term Problem

This isn’t the first time Trump’s policies have hurt tourism. During his first term, travel from China, Mexico, and Muslim-majority countries declined due to visa restrictions and divisive rhetoric. But Adam Sacks, president of Tourism Economics, calls the current situation “orders of magnitude worse.”

The stakes are enormous. The U.S. Travel Association estimates that a Canadian tourism boycott alone could cost $4 billion and jeopardize 140,000 hospitality jobs. Mexico, which was poised for an 18% tourism surge, now risks repeating the declines seen between 2017 and 2019.

What’s Behind the Drop?

Beyond economic policies, travelers are growing wary of U.S. immigration practices. Reports of detentions—even for those with valid visas—have sparked global concern. In March 2025, Germany and the U.K. issued travel advisories cautioning citizens about potential issues at U.S. borders.

Sacks summarizes the problem: “The administration is committing unforced error after unforced error… There’s nothing to be gained from adversarial posturing toward Canada or Europe.”

The Bigger Impact

The fallout goes beyond lost tourism revenue—it’s about damaged trust. If the U.S. is perceived as unwelcoming, recovery could take years. With major global events approaching, the timing couldn’t be worse.

Will travelers return when politics shift? That’s the billion-dollar question. For now, the U.S. tourism industry faces a prolonged and costly downturn.

For further insights, explore related Forbes coverage on Germany’s travel warnings and the $4 billion risk from Canada’s tourism boycott.

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