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International Tourism to the U.S. Falls Sharply in 2025, Driven by Political Policies

New data shows a 12% drop in international arrivals, with Canadian car travel down 32% and Australian visitors declining by 7%, as tariffs and border enforcement deter travelers.

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Overview

  • International travel to the U.S. fell by 12% in March 2025 compared to March 2024, marking the sharpest decline since the COVID-19 pandemic.
  • Canadian car travel to the U.S., which represents a significant portion of inbound tourism, dropped by 32% year-over-year in March, escalating from earlier declines.
  • Australian visitors to the U.S. decreased by 7% in March 2025, with reports of harsh border enforcement and political rhetoric deterring travelers.
  • Airlines, including United and Delta, have reduced capacity on U.S.-Canada routes due to falling demand, with tens of thousands of seats cut in April alone.
  • Economic losses from declining tourism are projected to exceed $6 billion in 2025, with the U.S. hospitality sector facing significant job risks.