U.S. economy latest news: Trade war and tariffs cause losses to U.S. economy: reduced travel and U.S. product boycotts could cost U.S. up to $90 billion
The U.S. tourism industry is very popular
According to NBC News, the biggest decline in tourism is from Canada, as the U.S. president targets the country directly through trade restrictions and indirectly by threatening Canada to become the “51st state.”
U.S. Customs and Border Protection data found Canadian tourists fell 12.5% in the year in February, and even fell 18% in March, NBC News reported. The National Tourism and Tourism Agency revealed that Western European travelers from another traditional Allied region also declined. TROURISTS from the UK and Germany chose not to visit the US this year, and data showed travelers in those countries fell 29% in March, according to NBC News. Western European tourists also fell by 12% in March, the report added.
Tariffs and boycotts can deepen economic pain
“Multiple data sources point to the slowdown — and there are a lot of anecdotes that suggest that this is even more serious,” said Jan Freitag, senior vice president of Holding Insights at STR Global, who said.
Goldman Sachs analysts warn that the worst case scenario for Trump’s tariffs is that the U.S. could lose at least $90 billion in revenue this year due to the combined impact of reduced access and cancelled U.S. goods, according to NBC News.
Ahead of Trump’s liberation day announcement, analysts warned: “Foreign boycotts of U.S. products could exert modest resistance to U.S. GDP growth in 2025, driven primarily by a pullback in foreign tourism.”
They even mentioned: “Although small, this headwind provides another reason – besides the more direct negative effects of tariffs and the more direct negative effects of foreign retaliation exports already built into our U.S. GDP forecast, why U.S. GDP growth may be less than the 2025 performance consensus expectations,” NBC News quoted NBC News. ”
Tourism Economics President Adam Sacks stressed: “The damage has been done. Although Trump’s softening position can still mitigate the consequences, things will take some time to resolve and people need to warm people back to the United States,” as quoted in the report.
FAQ
Why is the U.S. economy expected to lose $90 billion this year?
Because there are fewer tourists due to President Trump’s trade and tariff policies, and some countries are boycotting U.S. goods.
What causes the decline in Canadian tourists?
Trump’s tough trade stance on Canada and shows that it may be the “51st state” to upset many Canadians.
