In 2025, the United States tourism industry faces a crisis unmatched in recent memory. What once generated around $200 billion annually has plunged by over $50 billion in just one year, a sharp and painful decline felt acutely in major cities such as New York and Los Angeles. The reasons stretch beyond cost and logistics, America’s growing tensions in global trade relations are also shaping how travelers view the country. This has combined with rising expenses, visa complications, and flight cuts to drastically reshape the tourism landscape in ways that few anticipated.
Cost remains a major barrier for visitors. Airfares into and within the U.S. have jumped by 25%–40%, hotel prices have doubled, and the overall expense of a U.S. vacation is pushing many potential visitors toward more affordable destinations. But increasing costs alone do not fully explain the downturn. Political and economic friction tied to trade policies has led to broader skepticism about the U.S. environment, including for travel. Ongoing trade disputes have unsettled diplomatic relations with key markets, contributing indirectly to more restrictive visa policies and heightened scrutiny at borders.
Trade tensions have also chilled the mood of international travelers who are hesitant to engage with a country perceived as increasingly difficult to do business with or visit. Several nations caught in trade conflicts with the U.S. have introduced travel advisories or encouraged their citizens to reconsider trips amid concerns over treatment and uncertainty at the border. This has discouraged tourism from countries vital to the sector’s health, amplifying the downturn.
Meanwhile, new visa policies and stricter border controls have created hurdles that mirror the hardened posture in trade. Processing times have stretched, and some travelers from countries involved in trade disputes report being singled out for additional scrutiny or delays. These tougher rules create an atmosphere of unpredictability and frustration that dampens traveler enthusiasm, eroding America’s reputation as a welcoming destination.
Flight availability has also suffered due to airline route cancellations, in part linked to wider economic uncertainties created by trade conflicts. Airlines are cutting back routes deemed less profitable or riskier given the current geopolitical climate. This has reduced options, making both planning and arriving in the U.S. more complicated and expensive.
At the same time, competitors like Japan, Greece, and Mexico have capitalized on the situation. These countries offer rich experiences at more accessible price points with fewer entry barriers, attracting tourists who might otherwise have chosen the U.S. Notably, Canadian travelers have reduced their air travel to the U.S. by 24%, spurred partly by political tensions, higher costs, and direct appeals to “travel elsewhere.” The decline in land border crossings is even more severe.
The result is a significant shift in sentiment among international travelers. Instead of being seen as the dream destination, the U.S. is now widely viewed as “not worth the hassle”, expensive, difficult to access, and less hospitable. Safety concerns, political unrest, and reports of unfriendly border interactions feed into this perception, discouraging visits. Social media amplifies these stories, shaping public opinion with honest though often discouraging accounts.
This is deepening a boycott trend among regions like Western Europe and Canada, where calls to avoid U.S. travel are growing louder. The travel industry’s erosion is not simply about fewer tourists; it threatens jobs and tax revenues in cities that have long depended on tourism dollars. Without decisive action to ease visa and border restrictions, address cost issues, and repair diplomatic relations affected by trade conflicts, the tourism sector’s recovery could be slow and uneven.
