The U.S. economy is facing the potential loss of tens of billions of dollars in 2025 due to a downturn in foreign tourism and growing international boycotts of American goods.
This adds another layer of concern to an already uncertain economic outlook, with the threat of recession still looming.
According to figures released Monday by the International Trade Administration (ITA), air travel to the U.S. by non-citizens fell by nearly 10% in March compared to the same month last year. Analysts at Goldman Sachs estimate that, under a worst-case scenario, the combination of reduced international travel and product boycotts could shave off 0.3% from the U.S. GDP—equivalent to approximately $90 billion.
In recent years, foreign tourism has been a strong contributor to the U.S. economy, especially following the end of COVID-19-related travel restrictions. However, that momentum appears to be fading as prospective tourists reassess their travel plans amid growing tensions at U.S. borders, rising geopolitical conflicts, and broader economic instability worldwide.
Among those reconsidering their travel plans is Curtis Allen, a videographer from Canada. Allen chose to cancel his upcoming trip to the U.S. following former President Donald Trump’s remarks about Canada, including his imposition of trade tariffs and a controversial suggestion that Canada should become the 51st state. Although Allen and his partner have enjoyed multiple camping trips in Oregon in the past, they’ve opted this year to explore British Columbia instead.
“We’re not just staying home,” said the 34-year-old. “We’re still spending that money, just not in the U.S.”
Allen has also taken his protest further, cutting off his Netflix subscription and steering clear of American-made goods in stores.
“Grocery shopping takes twice as long now because we’re checking where everything comes from,” he explained.
International spending in the U.S. reached a record $254 billion last year, according to ITA data. Heading into 2025, the outlook had initially seemed bright, with the agency forecasting 77 million overseas visitors—just shy of pre-pandemic levels in 2019—with expectations for a new record in 2026.
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