Trump's trade wars to threaten US tourism?

In addition to the trade tensions, domestic tourism is also expected to take a hit. Tourism Economics forecasts a 1.4% decline in U.S. travel spending in 2025 due to a combination of factors, including slower economic growth, rising inflation, and diminished consumer confidence. The Federal Reserve has lowered its economic growth forecast for 2025 to 1.7% amidst concerns about inflation and economic uncertainty, which could lead to reduced spending by U.S. households on domestic travel.

The hotel sector could also experience challenges, particularly in the lower-tier hotel chains, as U.S. consumers are expected to scale back their travel plans. Weaker job and income growth will likely result in reduced travel demand, with lower-income households facing increased pressure from rising prices caused by tariffs. The reduction in international visitors combined with less spending by U.S. residents could see U.S. hotels facing declining demand for rooms in 2025.