A sharp decline in foreign travel to the United States this year is being blamed on President Donald Trump‘s immigration policies, trade rhetoric and renewed visa restrictions, with tourism analysts warning the slump may extend beyond summer.
From border towns like Buffalo to major tourist draws such as Las Vegas and Los Angeles, international visitor numbers have dropped since Trump returned to office in January. Many in the travel industry say the White House’s hardline stance on immigration, tariffs and foreign policy is discouraging tourists.
Why It Matters
The U.S. government recorded 3 million fewer overseas visitors in the first seven months of 2025 compared to the same period a year earlier. The decline is steepest among Canadians, traditionally the top source of international visitors. Statistics Canada reports a 37 percent drop in car trips and 26 percent drop in air travel by Canadians returning from the U.S. in July.
What To Know
The World Travel & Tourism Council says the United States will be the only major destination among 184 countries to see a drop in foreign visitor spending this year — a $12.5 billion loss that industry leaders blame on politics.
“The world’s biggest travel and tourism economy is heading in the wrong direction,” said Julia Simpson, the council’s president and CEO. “While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”
Analysts say the slump, which began after Trump’s return to office in January, may extend well beyond the summer. Travel research firm Tourism Economics projects an 8.2 percent drop in international arrivals in 2025, citing what it calls a “severe” sentiment shift among foreign travelers.
Buffalo, New York, is one of many U.S. cities feeling the effects. A campaign aimed at Canadian tourists this summer featured a billboard that read “Buffalo Loves Canada” and a $500 gift card giveaway. More than 1,000 people entered, but few showed up.
“To see the traffic drop off so significantly, especially because of rhetoric that can be changed, is so disheartening,” said Patrick Kaler, CEO of Visit Buffalo Niagara.
Canada sends more travelers to the U.S. than any other country. But in a rare reversal, more Americans drove into Canada this summer than Canadians made the reverse trip, according to Statistics Canada. Car travel by Canadians returning from the U.S. fell 37 percent in July, with air travel down 26 percent.
Tourism operators from Seattle to New York report similar pullbacks. In Seattle, John Brink’s food tour company saw a 50 percent drop in Canadian customers. “Usually you kill it that weekend,” he said, referring to the annual Blue Jays–Mariners baseball series. “But the foot traffic wasn’t there.”
In New York City, organizers of the International Lindy Hop Championships postponed the event after international dancers pulled out, citing discomfort with U.S. policies. “What we’re hearing is still the same — that (dancers) don’t want to come here,” said co-producer Tena Morales.
What People Are Saying
Nevada Democrats in a statement shared to Newsweek: “Donald Trump’s erratic trade war is steering Nevada’s economy towards full-blown crisis, as tourism declines and inflation worsens — yet, Joe Lombardo thinks Nevadans should feel a little pain from Trump’s tariffs.”
Peter Follows, CEO of Carpedia International, a global business operations consulting firm that specializes in the aviation industry, told Newsweek:Â “From the perspective of an operator in the travel industry, the external causes of declining demand are less relevant than the question of how the business responds.”
Ben Smith, the chief executive of Air France-KLM, said in a report on the company’s first quarter: “We know there are a lot of customers that are holding back in buying tickets for a little more clarity on … the border, and things like that.”
What Happens Next
Starting October 1, the U.S. will impose a $250 “visa integrity fee” on visitors from countries not in the visa waiver program. The fee pushes the total visa cost to $442 — among the highest globally.
Newsweek
