U.S. Travel Industry Faces Billions in Losses For Trump's Policies and Tariffs? What you need to know?

Canada, which has historically been the largest source of international visitors to the U.S., has seen a sharp drop in cross-border travel.

Statistics Canada reports that visits by car from Canada to the U.S. fell by 23% in February, while U.S. car trips to Canada declined by 7.9% over the same period.

The downturn comes as Trump has renewed calls for Canada to become the 51st U.S. state, a statement that has sparked outrage north of the border.

The European travel market, which accounted for 37% of overseas visitors to the U.S. in 2024, is also showing signs of weakening demand.

The U.S. Bureau of Economic Analysis (BEA) has long recognized tourism as a major driver of economic growth, contributing over $1.9 trillion to the economy annually.

With political uncertainty, shifting global alliances, and economic turbulence, travelers are reconsidering the United States as a preferred destination, opting instead for Canada, Europe, and other politically stable regions.