The United States is facing an unexpected economic hit. While global focus shifts to tariff wars and geopolitical tensions, foreign tourists are quietly disappearing—and with them, billions of dollars.
According to Goldman Sachs, a drop in inbound tourism and boycotts of U.S. goods could cost the American economy 0.3% of its GDP, which is about $90 billion in 2025.
📉 Early Red Flags Are Already Showing
Airfares are dropping, hotel prices are sliding, and car rental rates are shrinking. That’s not a good sign. Bloomberg Intelligence estimates that foreign visitor spending could fall by $20 billion—and this may just be the beginning.
The International Trade Administration (ITA) reported a 10% drop in international air travelers to the U.S. in March compared to the previous year.
🌍 Geopolitical Tensions Are Scaring Off Travelers
Prospective tourists are rethinking their trips to the U.S. due to border hostility, international frictions, and global economic uncertainty. One example is Canadian filmmaker Curtis Allen, who canceled his trip after Trump imposed tariffs on Canada and hinted it could become “the 51st state.” He stated:
“We’re not just staying home—we’ll spend that money somewhere else.”
European tourists are also pulling back. Reports of detentions at U.S. airports have sparked concern. Accor SA, a major hotel operator, revealed that European bookings for the U.S. are down 25%.
Canada Remains Cautious Amid Travel Woes
Even iconic destinations like Niagara Falls are feeling the strain.
Patrick Keyes from Rainbow Air Helicopter Tours, who just invested $25 million in upgrades and virtual attractions, admitted:
“We’re waiting to see the impact.”
OAG Aviation data backs it up—Canadian flight bookings to the U.S. are down 70% through September.
🗣️ Trump’s Policies Carry Real-World Consequences
Economists from Goldman Sachs warn that America’s aggressive stance toward longtime allies is damaging its global reputation.
Ironically, they still believe tariffs could boost GDP in the short term—even if the U.S. loses income and trust from foreign markets.
🧭 States Scramble for Solutions
Places like Oregon are working on their own rescue plans.
Travel Oregon is still promoting tourism abroad, hosting partners from the U.K., Brazil, and India. But their team is also considering a pivot:
“We may need to focus more on domestic visitors if the trend continues.”
🔍 Conclusion: The U.S. Risks Losing More Than Just Money
Foreign tourists were once a golden stream of income for the U.S. economy. Now that stream is drying up—due to policy, perception, and pressure.
If America doesn’t course-correct soon, it won’t just lose revenue.
It may lose global trust, too.
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