Mexico
Mexico’s tourism sector took a tough hit as Trump’s tariff war sent shockwaves through the local economy. After steel and aluminum tariffs were introduced, the cost of goods surged, making travel packages and local attractions more expensive for American visitors. The Mexican Tourism Board reported that U.S. tourist numbers dropped by 10% in 2019, which amounted to a staggering $1.5 billion loss in revenue. This drop was especially painful for hotspots like Cancun and Los Cabos, where hotels and tour operators saw bookings plummet. Many small businesses in these cities, which depend on steady streams of American tourists, struggled to stay afloat. The overall sense of unpredictability around trade relations made travelers hesitant to book trips. As prices rose, families and budget travelers decided to postpone or cancel their vacations. The result was an undeniable dent in Mexico’s tourism-dependent economy.
Canada
Canada felt the effects of Trump’s tariffs ripple through its tourism industry, particularly in cities close to the U.S. border. The Canadian Tourism Commission noted a 5% decrease in American visitors during 2019, equaling nearly $1 billion lost. Tariffs on lumber and other goods led to higher costs in the hospitality sector, making everything from hotel stays to restaurant meals pricier for travelers. Toronto and Vancouver, cities that usually thrive on U.S. tourists, saw a noticeable drop in bookings. Exchange rate swings further complicated the picture, sometimes making it even less appealing for Americans to cross the border. The political tension between the two nations also created a sense of unease, discouraging some from visiting. In response, Canadian tourism officials launched international campaigns to attract visitors from Europe and Asia. Despite these efforts, the loss of American tourists left a visible gap in Canada’s tourism economy.
China
China’s tourism industry was deeply affected as the trade war escalated, with the U.S. imposing tariffs on $250 billion worth of goods and China retaliating in kind. The number of American tourists visiting China dropped by 10% in 2019, resulting in an estimated $3 billion loss for travel businesses. Destinations such as Beijing’s Forbidden City and the Great Wall experienced fewer international visitors, and local tour operators had to adjust to the sharp decline. The tariffs didn’t just raise the cost of visiting China—they also fueled a perception of tension and uncertainty, making the idea of travel less attractive. Chinese tourism authorities tried to offset the loss by courting visitors from other countries, but the gap left by fewer Americans was tough to fill. Businesses that relied on U.S. travelers, such as luxury hotels and English-speaking guides, faced a difficult year. The long-term impact of these changes remains unclear as trade tensions linger. The tourism sector continues to hope for more stable relations in the future.
European Union
The European Union’s tourism sector faced unique challenges as tariffs targeted a range of goods, casting a shadow over transatlantic travel. According to the European Travel Commission, U.S. tourist arrivals dipped by 3% in 2019, leading to a $1.2 billion loss for European destinations. Places like Paris, Rome, and Barcelona—long favorites among American tourists—reported fewer bookings and quieter seasons. The tariffs on iconic products, such as whiskey and motorcycles, gave travelers the impression that Europe was becoming a pricier destination. This perception, combined with political uncertainty, led many Americans to reconsider their vacation plans. European tourism boards quickly responded by trying to lure travelers from Asia and the Middle East. Even with these efforts, the absence of American visitors was felt in museums, hotels, and restaurants across the continent. The ongoing debate over tariffs keeps the future of U.S.-E.U. tourism relations uncertain.
Australia
Australia’s tourism industry, while geographically distant, was not immune to the effects of Trump’s tariff war. The Australian Bureau of Statistics recorded a 4% decline in American visitors in 2019, translating into an $800 million revenue shortfall. Tariffs on Australian agricultural products and wine pushed up prices, making travel experiences like vineyard tours and farm stays more expensive for visitors. Major cities like Sydney and Melbourne saw fewer American tourists in their hotels and attractions. The perception of rising costs led many to reconsider their trips, especially for longer, more expensive vacations. Australian tourism boards worked hard to highlight the country’s unique wildlife and landscapes, hoping to appeal to adventurous travelers. Despite these creative campaigns, the lure of Australia was dulled by economic worries. The sector continues to feel the pressure as global trade uncertainty remains.
Brazil
Brazil’s vibrant tourism scene was disrupted as the trade war intensified, particularly affecting its relationship with the United States. The Brazilian Ministry of Tourism reported a 6% dip in American visitors in 2019, causing a loss of approximately $500 million. U.S. tariffs on Brazilian exports like coffee and soybeans pushed up consumer prices, which trickled down to travel-related costs. Rio de Janeiro, São Paulo, and other popular destinations noticed a decline in bookings and tourist spending. The perception that a Brazilian vacation was now more expensive deterred many travelers from making the trip. In response, tourism authorities launched new marketing efforts to attract visitors from Europe and other regions. They played up the country’s rich culture and natural wonders. Still, the negative effects of the tariff war linger, creating uncertainty for Brazil’s tourism operators.
Vietnam
Vietnam’s tourism sector was caught in the crossfire of shifting global trade routes, even as it saw a brief uptick in American visitors. The Vietnam National Administration of Tourism reported a 5% increase in U.S. arrivals in 2019, but the growth was not as robust as expected. The country benefited from companies moving manufacturing out of China, but the trade war also introduced new uncertainties. Potential travelers hesitated, concerned about broader economic instability. Ho Chi Minh City and Hanoi experienced uneven booking patterns, with some months busier than others. Vietnamese tourism authorities doubled down on promoting the country’s safety and affordability. They highlighted culinary and cultural experiences to attract cautious travelers. The long-term outcome for Vietnam’s tourism industry remains unpredictable as global trade patterns continue to shift.
India
India’s tourism industry faced difficulties as tariffs increased the cost of Indian goods, making travel more expensive for Americans. According to the Ministry of Tourism, there was a 3% drop in American visitors in 2019, resulting in a $300 million loss in tourism revenue. Tariffs on textiles, jewelry, and other exports pushed prices higher, affecting shopping and hospitality sectors. Destinations such as Delhi and Jaipur, popular for their rich history and culture, reported fewer bookings from U.S. tourists. The perception of India as a pricier destination was hard to overcome. In response, Indian tourism officials launched campaigns that showcased the country’s unique heritage and diversity. They sought to attract visitors from new markets to fill the gap left by Americans. The uncertainty of ongoing trade tensions continues to cloud the outlook for Indian tourism.
Thailand
Thailand’s bustling tourism industry was not spared from the effects of the tariff war, especially in its dealings with the United States. The Tourism Authority of Thailand reported a 4% reduction in American visitors in 2019, costing the industry around $600 million. Tariffs on electronics and agricultural products led to increased prices, affecting everything from street food to luxury resorts. Bangkok, Phuket, and other tourist centers noticed fewer American faces in their crowds. The general belief that Thailand had become more expensive discouraged budget-conscious travelers. Thai tourism officials responded with promotional deals and focused on the country’s exotic appeal. They aimed to attract visitors from other regions, but the absence of Americans was still felt. The lingering effects of the trade war continue to shape Thailand’s tourism strategies.
South Korea
South Korea’s tourism sector confronted new challenges as tariffs hit major export industries and affected travel from the United States. The Korea Tourism Organization documented a 5% drop in American visitors in 2019, leading to about $400 million in lost revenue. U.S. tariffs on South Korean automobiles and electronics pushed up prices for travelers, impacting car rentals, electronics purchases, and tour packages. Cities like Seoul and Busan saw fewer American tourists at their landmarks and shopping districts. The perception that a Korean vacation was now pricier discouraged many from traveling. South Korean tourism officials responded by promoting cultural festivals and modern attractions. They worked to highlight the unique blend of tradition and technology. The long-term prospects for tourism remain uncertain as both countries navigate ongoing trade disputes.
