As International Travel to the US Declines, Expert Breaks Down Impacts
Many international travelers are reconsidering their trips to the United States due to tariffs, immigration enforcement and other policies.
The number of international travelers to the United States is on the decline, with tourism officials and industry analysts partly attributing it to global political tension caused by President Donald Trump’s “America First” agenda.
Data published by the International Trade Administration, an agency under the U.S. Department of Commerce, shows that international travel to the U.S. fell nearly 12% in March 2025 compared to the same time last year.
“I think we’re just kind of starting to see the effects of tariffs on international travel, especially on the number of Canadians visiting the U.S.,” said NC State Tourism Extension associate Ann Savage, who supports tourism development and sustainability across the state.
On February 1, 2025, President Trump signed executive orders imposing 25% tariffs on goods from Mexico and Canada. Many Canadians have since expressed anger and frustration, boycotting American-made products and choosing not to travel to the U.S.
Savage referred to a report published by Tourism Economics, a research and consulting group that specializes in travel forecasting and economic analysis, showing that trips by Canadians returning from the U.S. by land dropped by nearly 32% year-over-year in March 2025.
Tourism Economics concluded that international travelers, particularly Canadians, are turning away from the U.S. as a destination in part because of “a growing wave of negative sentiment” due to policies and pronouncements from the Trump administration.
The group’s report also attributed the decline to heightened border security measures and immigration enforcement actions, with some travelers expressing fears of being unfairly detained. It also noted that the dollar remains strong, making U.S. vacations more expensive.
Savage said the tourism industry is largely reliant on the perceptions potential travelers have of a place, adding that “destination marketing organizations do a great job of honing in on these perceptions of target markets and ensuring they are true to the destination.”
But sometimes news of political, social or environmental events can create negative perceptions of places, according to Savage. And when that happens, it impacts tourists’ decision making as “trading off international destinations, especially before any booking has taken place, is easy.”
The decline of international travel to the U.S. is expected to continue throughout the remainder of the year, with Tourism Economics estimating a 9.4% decline in international visitor arrivals for 2025, led by a 20.2% decline in visitation from Canada.
America’s tourism industry stands to lose billions of dollars if international visitation continues to trend downward. Tourism Economics forecast a loss of $9 billion in spending this year alone for the U.S., while the World Travel & Tourism Council estimates a $12.5 billion loss.
Savage said major destination cities such as New York City and Las Vegas could experience the brunt of the economic impact. A number of Las Vegas hotels and casinos have already begun laying off concierge workers.
Nationwide Trend, Local Impacts
Unlike some other states, North Carolina isn’t likely to experience a significant drop in tourism revenue due the decline of international travel to the U.S., according to Savage. The state’s tourism industry generates much of its annual revenue from domestic visitation.
About 40 million visitors from across the U.S. spent a record $35.6 billion on trips to and within North Carolina last year, marking a 2.7% increase from the $34.6 billion spent in 2023. The state ranks fifth behind California, Texas, Florida and New York in domestic visitation.
But international travelers still play an important role in North Carolina’s tourism industry, adding to the economic impact generated by domestic tourism. More than 900,000 visitors from around the world spent $1.2 billion last year, up 16.5% from the previous year.
Savage said the loss of Canadian travelers poses the most immediate and apparent threat to North Carolina’s international tourism market, though there is potential for additional losses if travelers from other countries react negatively to U.S. policies.
Canadians generally make up more than half of all international travelers to North Carolina. In 2023, the last year segmented data is available, nearly 380,000 Canadian visitors spent more than $210 million. The United Kingdom followed in second place with just 51,525 visitors.
While the decline in Canadian travelers isn’t enough by itself to threaten tourism-oriented businesses across North Carolina, other factors could compound the issue and pose serious challenges for local markets.
Many businesses across western North Carolina are still recovering from Hurricane Helene last year, for example. The tropical storm caused significant damage to Asheville, which receives a large share of the state’s international travelers.
Nearly half of all small businesses fail to reopen after a natural disaster. Tourism can provide a lifeline for local economies in the aftermath of natural disasters, with tourist dollars supporting small businesses, creating jobs and even funding repairs to infrastructure.
Local and state tourism officials, including Savage, are encouraging travelers to spend time and money in western North Carolina this summer. VisitNC, the state’s official destination marketing organization, has created a guide to visiting the region in the aftermath of Helene.
“Summer is the most popular travel season in North Carolina, and this summer in particular will be vital for many counties in the western part of the state as they continue to recover,” Savage said. “We’re hoping to see strong visitation numbers.”
