The United States, once a top destination for international travelers, is seeing a sharp drop in visitors. A growing number of tourists are actively avoiding the country, citing concerns over politics, safety, and visa issues. While tourism in many parts of the world is rebounding post-pandemic, the U.S. is struggling to attract visitors, potentially costing the economy billions. trump travel impact

Foreign traveler arrivals in the United States are expected to decline by 5.1 percent in 2025 compared to last year, against a previously projected increase of 8.8 percent, Tourism Economics said in a report published late last month. Their spending is expected to slide 10.9 percent.

Since the report’s publication, “the situation has deteriorated further,” and the outcome will likely be even worse, Tourism Economics president Adam Sacks said, citing “the effects of antipathy towards the US.”

In recent weeks, the Trump administration has slapped tariffs on Canada, Mexico, and China and threatened to impose them on the European Union. A sweeping plan to curb immigration has intensified.

Government bodies like the US Agency for International Development have been decimated, thousands of civil servants, from lawyers to park rangers, have been laid off, and Trump has drawn up controversial plans for the wars in Ukraine and Gaza. Not to mention his plans for Greenland.

“A situation with polarizing Trump Administration policies and rhetoric… will discourage travel to the US,”

said Tourism Economics, a subsidiary of Oxford Economics.

Among residents of 16 European and Asian countries surveyed by YouGov in December, 35 percent of respondents said they were less likely to come to the United States under Trump, while 22 percent were more likely.

The Decline in U.S. Tourism

The latest figures show a sharp drop in international travelers choosing the U.S. as their destination. The reasons behind this trend are clear:

• Trump’s Presidency – Since Donald Trump returned to office, international sentiment toward the U.S. has cooled significantly. Many travelers, particularly from Europe, see his leadership as a return to divisive policies, including stricter immigration controls and isolationist rhetoric. Some are actively boycotting travel to the U.S. in protest.
• Safety Concerns – Gun violence and political unrest are major factors in deterring tourists. In some countries, government advisories warn citizens about the risks of traveling to certain American cities.
• Travel Restrictions – Visa requirements and entry procedures remain a major hassle for visitors from many countries. While competitors like the EU and Japan have simplified entry for tourists, the U.S. has maintained strict policies that discourage potential visitors.
• Negative Image of the U.S. – The perception of America as a global leader in innovation and freedom is shifting. Many travelers see it as politically unstable and less welcoming than before, influencing their travel choices.

The economic impact of this decline is significant. The U.S. tourism industry, which heavily depends on foreign visitors, is losing billions in potential revenue, affecting airlines, hotels, restaurants, and retail businesses. Tourists from Western Europe—who made up 37 percent of visitors in 2024 — are the most likely to choose other destinations, along with Canadians and Mexicans.

The US Travel Association warned in early February that customs tariffs would deter Canadians, the largest contingent of foreign tourists in the United States with 20.4 million in 2024.

According to Statistics Canada, the number of Canadians returning from the United States fell 23 percent in February year-on-year, the second consecutive monthly decline.

In New York, which welcomed 12.9 million foreign travelers in 2024, the effect is already noticeable, with Canadians canceling tour bookings and a drop in online searches for hotels or Broadway shows, NYC Tourism president Julie Coker told AFP.

Professionals also fear the effects of tightening immigration policy on major sports events hosted by the United States, such as the Ryder Cup (2025), the FIFA World Cup (2026), and the 2026 Summer Olympics in Los Angeles.

The Tesla Connection: A Symbol of Declining U.S. Appeal

While tourism numbers are falling, another telling trend is Tesla’s sharp drop in sales—a decline closely tied to its CEO, Elon Musk. Tesla’s sales in Europe are continuing their alarming decline, recording a staggering 45% drop in January and February 2025 compared to the same period last year. trump travel impact

Tesla, once the undisputed leader in electric vehicles, is seeing its first annual sales drop in over a decade. The reason? Musk’s increasingly controversial behavior and political stance.

• Musk’s Shift to the Right – Once admired as a tech visionary, Musk has alienated a significant portion of Tesla’s customer base by embracing far-right politics, amplifying conspiracy theories, and engaging in public feuds. Many progressive consumers who once saw Tesla as a brand of the future are now turning away.
• Boycotts and Brand Damage – There is a growing trend of consumers actively choosing alternatives, not because of Tesla’s technology, but because they don’t want to support Musk. This shift mirrors the decline in tourism—people are making spending decisions based on their views of America and its key figures.
• From Innovation to Controversy – Instead of being known for cutting-edge EVs, Tesla is increasingly in the headlines for Musk’s personal controversies. For a brand that thrived on its futuristic and eco-friendly appeal, this shift is hurting its reputation and bottom line.

The Bigger Picture Trump travel impact

Both the decline in tourism and the struggles of Tesla point to a larger issue: America’s global image is changing. Under Trump’s leadership, the country is becoming less attractive—not just as a travel destination but also as a brand. Political choices are influencing where people go, what they buy, and how they perceive the U.S. on the world stage.

For the tourism industry, regaining trust and appeal will require significant changes in policy and messaging. For Tesla, the challenge is even more personal—convincing former loyal customers that the company is bigger than its CEO.