On April 2, 2025, US President Donald Trump imposed new tariffs on foreign goods, from now on the minimum duty will be 10%. Find out how the tariff change will affect the tourism industry

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US President Donald Trump on Wednesday, April 2, imposed a broad range of tariffs that will apply to a large list of goods from most countries of the world. This innovation has caused widespread concern in various sectors, including the tourism industry, because these tariffs, aimed at restoring the balance of trade relations, could have significant consequences for both domestic and international travelers.

Will Trump's new tariffs affect the tourism industry, we will tell in this article.

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What tariffs did Donald Trump approve in 2025?

Among the tariffs presented: a base level of 10% for trading partners, 25% on all imported cars, as well as reciprocal duties between states, which can be up to 50% for at least 50 countries. Reciprocal tariffs do not depend only on the rates of other states, but also take into account the total rates of all tariffs, non-monetary barriers and other forms of evasion.

Will Trump’s new tariffs affect the travel industry?

For the travel industry, the impact is indirect. The tariffs apply to imported goods — such as cars, washing machines, or champagne. They do not affect the cost of airfares, hotel rooms, or vacation packages.

But the knock-on effects could be significant. The tariffs could push up prices, making America a more expensive destination for tourists.

Impact of Donald Trump’s tariffs on the aviation industry

The aviation sector has already felt the immediate effects of the tariffs. Airline stocks fell sharply in after-hours trading on April 2, 2025. Investors fear that the economic uncertainty caused by the tariffs could dampen demand for travel, especially among business travelers, a major source of revenue for airlines. Analysts warn that the already sluggish recovery in corporate travel could face further setbacks. In particular, during the evening trading session, Delta Air Lines shares fell by 3.6%, United Airlines – by 3.2%, American Airlines – by 2.2%. 

Boeing Chief Financial Officer Brian West said that the company does not expect a “significant short-term impact” from the tariffs. The US aircraft manufacturer has a huge order book, which, according to West, will protect the company in the short term. However, he added that there is some concern that the tariffs could affect the availability of parts.

How will the tariff increase affect hotels?

Hoteliers could face two potential areas of additional costs: on new construction, as well as furniture and equipment.

However, there is cautious optimism among operators of extended-stay hotels. Moving production to the US could benefit the extended-stay segment by increasing demand for temporary housing for workers near new projects.

Decline in International Visitors

The tariffs have also led to a decline in foreign visitors to the United States. Canadians, for example, are already choosing alternative destinations such as South America. This shift is attributed to negative sentiment stemming from U.S. trade policies, including the 25% tariff on Canadian goods. The decline in Canadian tourists could potentially result in the loss of $2.1 billion and 14,000 jobs in the U.S. tourism sector. 

Regional Economic Challenges

Regions that rely heavily on cross-border tourism are experiencing significant economic challenges. For example, upstate New York has reported a significant decline in Canadian tourism and cross-border travel, which are vital to the local economy. Local businesses have seen sales decline, with some restaurants and grocery stores experiencing declines of 50% and 35%, respectively, since the new tariffs were imposed.

Wider Economic Impact of Tariffs on the Tourism Industry

The broader economic impact of these tariffs is significant. Analysts predict that the negative effects of an extended trade war will spread to the US hotel industry in 2025. Domestic travel is expected to be negatively impacted by slower revenue growth and higher prices, while international travel to the US could decline due to a weaker foreign economy, a stronger dollar and negative perceptions of the US. 

U.S. President Trump’s new tariffs therefore have far-reaching implications for the tourism industry, affecting airlines, international visitor numbers, the regional economy and the broader economic landscape. Tourism stakeholders must navigate these challenges to mitigate potential losses.

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Reminder! US President Donald Trump has announced that a program for wealthy foreigners will be launched in a few weeks: individuals who invest $5 million in the country's economy will be able to obtain the right to reside in the state. We have already told you what the US Golden Card is and whether it will replace the EB-5 visa.

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