How Trump's Isolationism Is Crushing America's Vital Tourism Industry

The United States, once a beacon for global travelers, is watching its tourism industry crumble. A recent report from JPMorgan reveals a 10% drop in foreign visitors this Easter compared to last year, a decline that threatens to shave 0.1% off the nation’s GDP in 2025. The culprits? Harsh trade policies and a looming immigration crackdown that have soured international sentiment. For a country built on openness, this retreat into isolationism feels like a betrayal of our values and our economic future.

The numbers are stark, but they only hint at the human cost. Hotels sit half-empty, restaurants serve fewer diners, and small businesses that thrive on tourist dollars are left scrambling. This isn’t just about economics; it’s about the message we’re sending to the world. When travelers from Europe, Canada, and beyond choose other destinations, they’re not just avoiding higher costs or visa hassles. They’re rejecting a nation that seems to have turned its back on the promise of welcome.

The roots of this crisis lie in decisions made in Washington. The America First Trade Policy, with its reciprocal tariffs, has sparked retaliatory measures and frayed diplomatic ties. Meanwhile, fears of an overzealous immigration crackdown are keeping would-be visitors at bay. These policies, championed by President Trump’s administration, prioritize short-term nationalist wins over long-term prosperity. The result is a self-inflicted wound that weakens our economy and diminishes our global standing.

Advocates for inclusive policies have long warned of these consequences. Open borders and fair trade don’t just fuel economic growth; they project strength through cooperation. Yet, the current administration seems intent on proving the opposite, gambling that isolation will somehow make America great again. The evidence suggests otherwise, and the tourism slump is only the beginning.

Tourism is no small player in the U.S. economy. Foreign visitors pour billions into hotels, restaurants, and local shops, sustaining jobs and communities. Goldman Sachs estimates that reduced travel and boycotts could cost nearly $90 billion in lost GDP in 2025. That’s money not spent at family-owned diners, not earned by hotel workers, not invested in cities that rely on tourist foot traffic. The pain is immediate and tangible, especially for low-wage workers in the service sector who can least afford the hit.

The data backs this up. In March 2025, noncitizen arrivals by air dropped nearly 10% year-over-year, and Canadian flight bookings plummeted by 70%. Canada alone accounts for over a quarter of U.S. tourism, and their absence is felt acutely. These aren’t just statistics; they’re empty tables at restaurants and canceled shifts for workers. The service sector, already strained by rising costs from tariffs, reported its lowest growth since June 2024, with industries like hospitality barely holding on.

Historical precedent offers a grim parallel. After the 2003 Iraq War, anti-U.S. sentiment led to a sharp but brief tourism decline. Today’s slump, however, feels more entrenched, driven by ongoing trade disputes and immigration fears. Unlike the post-9/11 era, when global goodwill helped the U.S. recover, current policies are alienating even close allies. The administration’s defenders argue that these measures protect American jobs and security, but the evidence points to economic harm and eroded trust.

Contrast this with regions like Asia, where tourism is booming. Malaysia and Singapore saw a 150% surge in visitors in 2024, thanks to visa waivers and international cooperation. Their success underscores a simple truth: openness breeds prosperity. By doubling down on restrictive policies, the U.S. is ceding ground to competitors who understand that welcoming the world pays dividends.

The solution isn’t complicated, but it demands courage. Policymakers must reverse course on punitive trade tariffs and reassure global travelers that the U.S. remains a welcoming destination. Streamlining visa processes and investing in diplomatic outreach could restore confidence and boost arrivals. These steps aren’t just about economics; they’re about reclaiming America’s role as a nation that thrives on connection, not division.

Immigration policy offers another opportunity. Shifting focus to high-skilled workers, as some propose, could yield long-term gains. Studies project that redirecting 10% of low-skilled immigration to STEM roles could increase GDP by 0.3% by 2034 and 0.7% by 2054. These workers drive innovation, raise wages, and fuel consumption, benefiting everyone. But this shift must be paired with humane policies that don’t vilify immigrants or deter visitors. Fearmongering about immigration doesn’t just hurt tourism; it stifles the very growth we need.

Opponents of open policies often claim that prioritizing American workers requires closing borders and raising tariffs. This argument ignores reality. Global cooperation has historically driven U.S. prosperity, from post-World War II trade agreements to the tech boom fueled by immigrant talent. Isolationism, by contrast, has led to stagnation and resentment. The current administration’s approach risks repeating those mistakes, sacrificing jobs and goodwill for a fleeting sense of control.

The tourism slump is a warning, not a destiny. America can still be the destination it once was, a place where the world comes to dream, explore, and connect. But that requires a choice: embrace the openness that built our strength or continue down a path of isolation that weakens us all. The stakes are high, not just for the economy but for the soul of the nation.

Advocates for inclusive policies, from economists to community leaders, are sounding the alarm. They know that a thriving America is one that welcomes the world, not one that shuts it out. By rejecting tariffs and fear-driven immigration policies, we can rebuild trust, restore jobs, and show the world that America’s promise still shines. The time to act is now, before the damage becomes irreversible.