The US economy faces potential billions in losses in 2025 due to a decline in foreign tourism and boycotts of American products, adding to existing economic challenges and heightening the risk of a recession.
Daata released on Monday by the International Trade Administration, revealed non-citizen arrivals by plane dropped nearly 10% in March compared to the previous year, according to Bloomberg.
Goldman Sachs Group forecasts that, in a worst-case scenario, the US economy could lose 0.3% of GDP this year, or nearly $90 billion, due to reduced travel and boycotts.
Foreign tourism has been a key driver for the US in recent years, with the end of pandemic restrictions leading to a strong rebound in international travel.
However, many prospective visitors are now reconsidering their travel plans due to growing hostility at US borders, rising geopolitical tensions, and global economic uncertainty.
One such visitor is Curtis Allen, a Canadian videographer who canceled his planned US vacation after President Donald Trump imposed punitive tariffs on Canada and suggested it should become the 51st US state.
Allen, who has taken several camping trips to Oregon with his partner in the past, says they’ll be exploring British Columbia instead this year.
“Now it takes us double the time, because we’re looking at where the products came from,” he said.
Allen’s reluctance goes beyond travel. He’s also canceled his Netflix subscription and is deliberately steering clear of American-made products at the grocery store.
“Now it takes us double the time, because we’re looking at where the products came from,” he said.
International travelers spent a record $254 billion in the US last year, according to the International Trade Administration.
The outlook for 2025 initially looked promising, with the ITA forecasting 77 million visitors—just under the 2019 peak—and a new all-time high expected in 2026.
However, those projections were released just before reports of harsh detentions at US airports began making headlines, involving travelers from countries such as France and Germany.
