The travel and tourism sector of the U.S economy takes quite a hit from Trump‘s anti Canada and Europe tariffs and rhetoric. The Wall Street Journal (2025-6-3) reports data until May 2025 which show a 6% decline in international air travel and a 12% reduction in air arrivals from Europe (reference same period last year). Canadians seem to reduce their travels to the US as well, hitting many regions just across the long joint border. Airline bookings are an early warning indicator, but the more drastic figures are to be expected from the loss of spending tourists do not dispense in the US any more. Additionally, sizeable shares of US tourists travel to other countries due to the disgusting Trump rhetoric and spend their holiday budgets elsewhere. Trump‘s tariffs has focused a lot on redressing the trade balance of goods, but the balance of services like in tourism is worsening day by day now. The political economy of tariffs has multiple feedback effects which are quite hard to predict.
