SACRAMENTO, United States - Foreign visitors are canceling trips to the United States in record numbers as US President Donald Trump's trade war escalated, threatening to cost the US tourism industry up to $64 billion this year alone.
Tourism Economics, an industry research firm, projected a 9.4 percent decline in international visitors to the United States in 2025 in its report released on April 3, a dramatic reversal from the 9 percent increase it had originally forecast at the beginning of the year.
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"With each policy development, each rhetorical missive, we're just seeing unforced error after unforced error in the administration," Tourism Economics President Adam Sacks told Forbes. "It has a direct impact on international travel to the US"
Recent data from the US government's National Travel and Tourism Office confirmed the trend, showing that visits to the United States from overseas fell 11.6 percent in March compared to last year.
Cross-border trips from Canada by car fell 24 percent in February, according to Tourism Economics data.
Growing political and economic tensions between Canada and the United States under the Trump administration led many Canadians to sell their American vacation properties and cancel travel plans, according to media reports.
Traditionally, destinations like Palm Springs, Florida and Arizona relied on Canadian "snowbirds" who spend winters in the United States and inject millions into local economies.
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However, as the Wall Street Journal (WSJ) reported, Washington's recent aggressive policies, including added tariffs, stricter border controls and dismissive rhetoric, made Canadians feel unwelcome.
"We feel disrespected," Laura Mezzacapo of Vancouver's Travel Group told the Los Angeles Times, echoing sentiments from many Canadians who cite the United States as a longtime ally now turning cold.
Real estate markets also felt the impact. The WSJ noted that financial concerns, including unfavorable exchange rates, are accelerating sales of Canadian-owned US properties.
Some Canadians are explicitly boycotting the United States in protest. Herbert Bopp, a German native living in Canada, explained on his blog on April 4 that he has halted his US travel plans because Trump "wants to make Canada the 51st state, insults our prime minister and ridicules anything that smells of maple syrup."
European travelers are also reconsidering US visits. Several European countries have updated their travel advisories, with the British Foreign Office warned citizens that they "may be liable to arrest or detention" if they break US entry rules.
California is the No. 1 travel destination in the United States, with international visitors spending $26.5 billion last year, a 17.5 percent increase over 2023, according to Visit California.
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That growth is slowing, however. In March, the organization revised its projections for 2025 with just 2.3 percent annual growth, down from an earlier projection of 6.2 percent.
In Los Angeles, where tourism supports over half a million jobs, businesses are already feeling the pinch.
Moses Marjanian, owner of Hollywood City Tours, told Forbes early this month that business was down by 30 percent from a year ago, with tour buses running below capacity.
Social media sentiment reflected widespread reluctance among foreigners to visit the United States under current conditions.
One Australian commenter wrote on Reddit: "As long as the MAGA (Make America Great Again) crowd is in charge, I won't be spending my tourist dollars in the US".
A Canadian user said that they canceled plans for a Florida family vacation and booked a trip to Japan instead.
Tourism officials are scrambling to counter negative perceptions but face significant challenges given global backlash against Trump's policies.
Visit California said, "California's message to all visitors remains the same: you're welcomed and respected." However, some hotel brands have paused marketing campaigns for their US-based properties due to angry comments online.
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Experts warned that these trends could have lasting implications beyond this year. With major global events like the World Cup in 2026 and the Summer Olympics in Los Angeles in 2028 on the horizon, restoring international confidence in traveling to America will be critical.
Major travel businesses are already feeling the impact. Delta Air Lines CEO Ed Bastian told CNBC that Trump's shifting trade policy is the "wrong approach" and is hurting both domestic leisure and corporate bookings, endangering what the company had projected would be its "best financial year in history."
The United States Tour Operators Association (USTOA) has warned that the tariff hikes could destabilize the nation's entire tourism economy.
USTOA President and CEO Terry Dale emphasized: "This is not about partisan politics. It's about protecting an industry that supports millions of jobs and generates billions in revenue."