The tourism industry in the United States is undergoing a major slump, as travelers from key international markets—including Canada, the UK, Mexico, China, Brazil, France, Japan, and South Korea—are cancelling or rethinking their plans to visit. This downturn is being attributed to a combination of growing geopolitical strains, controversial domestic policies, and evolving global dynamics. A mix of trade conflicts, divisive political narratives, and rising anxiety around border policies is causing many global tourists to reconsider, potentially marking a lasting change in global travel patterns away from the US.
The US, once one of the world’s most popular travel destinations, is now experiencing diminishing interest from countries that historically sent large numbers of tourists. Nations such as Canada, the UK, and Mexico are seeing declines in traveler numbers, while enthusiasm from markets like China, Brazil, France, Japan, and South Korea is also waning. Analysts suggest this may not be a temporary dip, but the onset of a prolonged retreat in the US tourism landscape.
For some, the effects are personal. Olja Ivanic had eagerly planned to welcome her cousins from Sweden for an American vacation involving hikes in the Rocky Mountains and visits to Los Angeles and San Francisco. However, following a controversial meeting in February between President Donald Trump and Ukrainian President Volodymyr Zelenskyy, her relatives decided against visiting the US, opting for a European trip instead. Their change of plans reflects a trend echoed by many others across the globe.
According to the most recent statistics from the National Travel and Tourism Office (NTTO), the US experienced an 11.6% drop in international arrivals in March 2025 compared to the same month the previous year. Cumulatively, overseas visitors declined by 3.3% during the first quarter of 2025. A particularly sharp decline of 23% in air travel from Mexico adds to the industry’s concerns. Although Canada remains the leading source of international tourists to the US, even this traditionally strong market is now weakening.
Tourism Economics, a research firm that had once predicted a 9% rise in international tourism to the US for 2025, has revised its projection significantly. Instead of growth, it now anticipates a 9.4% decline. This stark change in outlook highlights the growing impact of America’s political and diplomatic tensions on international travel decisions.
Canada’s once-reliable flow of tourists to the US is showing signs of serious dissatisfaction, largely due to recent American policies and rhetoric. President Trump’s repeated remarks implying that Canada should become the 51st state, along with the introduction of tariffs, have left many Canadians frustrated. This discontent is being reflected in their travel habits. As reported by Flight Centre Travel Group Canada, bookings for leisure travel to the US fell by 40% in March 2025 when compared to the same month in 2024. Air Canada, responding to the reduced interest, has scaled back flights to popular US destinations including Florida, Arizona, and Las Vegas.
Meanwhile, interest from Europe is also fading. Countries such as Germany, France, and Italy have shown declining enthusiasm for US travel in early 2025. While the UK saw a slight increase in interest during March, the broader trend across Europe remains negative. Tourism from France and Germany is visibly down, and Italy has experienced a mild decrease as well.
The downturn extends across Asian markets, too. Between February and March 2025, bookings from Brazil dropped by 15%. Japan, a traditionally strong contributor to US tourism, is also seeing reduced interest. South Korea stands as a partial exception, having reported a rise in flight searches and bookings to the US. However, this modest growth has not been sufficient to compensate for the broader declines across other Asian nations.
Economic factors are compounding these trends. The Canadian dollar’s low exchange rate against the US dollar has made cross-border travel more expensive, encouraging Canadians to explore local travel options instead. Canadian airports have seen a decline in passengers heading to the US, a trend that mirrors similar behavior in other parts of the world where travelers are choosing domestic alternatives over American destinations.
In China, there are early signs of renewed curiosity among travelers, with some booking data pointing to a slight uptick in demand for US travel. Still, whether this momentum will be sustained is unclear, as changing global conditions could quickly reverse these gains.
From January through March 2025, the total number of international visitors to the US was 7.1 million—representing a 3.3% decline compared to the same period in 2024. The figures for March 2025 alone are more concerning, showing an 11.6% year-over-year drop in overseas visits.
Several factors are at play in this continued decline. Heightened geopolitical conflict and shifts in US policy have created a sense of unpredictability that discourages travelers. As global instability increases, tourists are gravitating toward countries perceived as more stable and welcoming.
Reduced interest is particularly noticeable among European countries such as Germany, France, and the UK. Similarly, traveler engagement from Brazil, Japan, and South Korea has decreased significantly. Although South Korea has shown some recent interest, it has not been enough to offset broader regional declines.
Much of the pushback from foreign travelers is being tied to President Trump’s aggressive political messaging and protectionist policies. The enforcement of tariffs, increased border scrutiny, and reports of tourists facing complications at US entry points have heightened concerns. “From President Trump’s frequent calls for Canada to become the 51st state to the imposition of tariffs, Canadian travelers are becoming increasingly disillusioned with visiting the U.S.,” the article notes.
As summer approaches, the US tourism industry is entering a period of deep uncertainty. With fewer international visitors on the horizon, the impact on hotels, airlines, and local economies dependent on tourism could be severe. A combination of diplomatic missteps, political volatility, and unfavorable economic factors is pushing tourists to choose destinations that offer greater reassurance and hospitality.
Travelers today are prioritizing safety and stability—qualities that many currently feel are lacking in the US. What appears to be a temporary dip could in fact represent a more fundamental shift in how the world views American travel. If this trend continues, the consequences could be long-lasting.
The tourism report bluntly states, “U.S. tourism is in freefall as travelers from key markets, including Canada, the UK, and Mexico, abandon plans due to rising political tensions, trade disputes, and concerns over U.S. leadership and border security.”
Going forward, the US travel industry will need more than marketing to reverse this trend. A broader reevaluation of diplomatic and political messaging may be required. While economic perks could draw back some tourists, the real challenge lies in restoring international goodwill and trust.
Whether the US can reestablish itself as a top travel choice is uncertain. For now, the sector is facing a difficult path, marked by declining interest, damaged reputation, and increasing competition from more stable and inviting destinations.
