Trump’s Trade War Is Hitting U.S. Tourism Hard

TODAY’S STORY

Trump’s trade policies aren’t just affecting goods and tariffs—they’re now spilling over into the travel industry. Future flight bookings between Canada and the U.S. have collapsed, a troubling sign for American businesses that depend on Canadian tourism dollars.

According to the U.S. Travel Association, a 10% drop in Canadian travel alone could cost the U.S. economy $2.1 billion and 14,000 jobs. Destinations like Palm Beach County, Florida, where Canadians made up about 40% of international visitors last year, stand to lose the most.

But this isn’t just a Canadian problem. Data shows that international visitors are becoming more hesitant to travel to the U.S. Tourism Economics projects a 5.1% downside scenario with U.S.-bound international travel this year, which could lead to a $18 billion decline in foreign tourist spending.

The hesitation is understandable. Countries like the United Kingdom and Germany have updated their travel advisories, warning citizens that visa issues, such as overstaying or providing incorrect information, can result in arrest, detention, and deportation. This follows high-profile incidents where tourists from both countries were detained for extended periods by U.S. immigration authorities.

With fewer foreign visitors, American tourism-dependent businesses—from airlines to hotels to local shops—are bracing for a tough year.

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