Trump’s 2025 Tariffs Hit Global Tourism Hard

How Trump’s 2025 Tariffs Are Hurting Global Tourism: A Deep Dive with Before-and-After Data

On April 2, 2025, U.S. President Donald Trump signed an executive order imposing new reciprocal tariffs on imports from all countries, aiming to bolster the American economy. These tariffs, ranging from 10% to 97%, target major trading partners like China (67%), the European Union (39%), and Vietnam (90%), among others. While the policy focuses on trade, its ripple effects are already threatening the global tourism industry, particularly in countries hit hardest by these tariffs. In this article, we’ll explore why these tariffs are negatively impacting tourism, provide specific examples with 2024 tourism data, and estimate the decline in tourist numbers for 2025. We’ve also included a detailed table to show the before-and-after impact.

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Why Are Trump’s Tariffs Hurting Tourism?

The new tariffs, officially titled “Reciprocal Tariffs,” are designed to match or exceed the tariffs that other countries impose on U.S. goods. For instance, China faces a 67% tariff (down from a U.S.-discounted 34%), Vietnam 90% (from 46%), and the European Union 39% (from 20%). These rates, as shown in the official tariff chart below, are shaking up global trade—and tourism is caught in the crossfire. Here’s why:

1. Reduced Spending Power of American Tourists
   Americans are a key demographic for global tourism, but the tariffs increase the cost of goods in the U.S., reducing disposable income for travel. Countries heavily reliant on American tourists, like Canada and Mexico, are already feeling the pinch.
2. Increased Travel Costs Due to Supply Chain Disruptions
   Tariffs disrupt global supply chains, raising the cost of imported goods like food, fuel, and equipment used in the tourism sector. This makes travel more expensive in affected countries, deterring tourists.
3. Diplomatic Tensions and Psychological Impact
   Trade wars often lead to diplomatic tensions, creating a sense of unease among travelers. Tourists may avoid destinations perceived as “unfriendly” due to ongoing economic conflicts.
4. Lower Investment in Tourism Infrastructure
   Countries facing revenue losses from reduced exports may cut budgets for tourism development, leading to deteriorating infrastructure and fewer attractions for visitors.

Case Studies: How Tariffs Are Impacting Specific Countries

Let’s dive into specific examples to see how these tariffs are affecting tourism in key destinations, using 2024 tourist arrival data and 2025 projections.

• Vietnam (90% Tariff)
  Vietnam, hit with a staggering 90% tariff (previously 46%), welcomed 18 million international tourists in 2024, largely drawn to destinations like Ha Long Bay and Ho Chi Minh City. American tourists made up a significant portion, with many also coming from Europe and China. The high tariff is expected to disrupt Vietnam’s export-driven economy, reducing government funds for tourism promotion. Additionally, increased costs for imported goods like fuel and food will raise travel expenses. We estimate a 25% drop in tourist arrivals, bringing the number down to 13.5 million in 2025.
• China (67% Tariff)
  China, facing a 67% tariff (previously 34%), saw 65 million international tourists in 2024, with attractions like the Great Wall and Shanghai drawing millions. The tariff war with the U.S. is likely to deter American and European tourists due to rising tensions and higher travel costs. China’s retaliatory tariffs could further strain its economy, limiting tourism investments. We project a 15% decline, reducing tourist numbers to 55 million in 2025.
• European Union (39% Tariff) – Focus on Spain
  The EU faces a 39% tariff (up from 20%), impacting popular destinations like Spain, which welcomed 85 million tourists in 2024. Spain relies heavily on American and intra-European tourists visiting cities like Barcelona and Madrid. The tariff will increase costs for Spanish tourism businesses that import goods, while economic slowdowns in the EU may reduce intra-European travel. We estimate an 8% drop, bringing Spain’s tourist numbers to 78 million in 2025.
• Thailand (72% Tariff)
  Thailand, with a 72% tariff (previously 36%), attracted 35 million tourists in 2024, thanks to its beaches, temples, and vibrant culture in places like Bangkok and Phuket. The high tariff will raise costs for Thailand’s tourism sector, which relies on imported goods for hotels and restaurants. Additionally, American tourists may opt for cheaper destinations. We predict a 20% decline, reducing arrivals to 28 million in 2025.

Before-and-After Trump’s Tariffs: Tourist Arrival Estimates

Here’s a detailed table showing the estimated impact of the tariffs on tourist arrivals in these countries:

Note: These estimates are based on 2024 data, the severity of the tariffs, and projected economic impacts.

Winners Amid the Chaos: Iran as a Rising Star

While many countries suffer, destinations like Iran, which are unaffected by these tariffs, could see a tourism boom. Iran offers a rich tapestry of history, culture, and natural beauty—from the ancient ruins of Persepolis to the stunning deserts of Dasht-e Kavir. With low costs due to favorable exchange rates, Iran is an affordable option for international tourists seeking alternatives to pricier destinations. In 2024, Iran welcomed around 6 million international tourists, primarily from neighboring countries like China, Russia, and Iraq.

With the Middle East seeing a 32% increase in tourist arrivals compared to 2019, Iran is well-positioned to capitalize on this trend. Curious about traveling to Iran? Check out this guide on why Iran is tourist-friendly to learn more about its welcoming atmosphere and travel tips. If this growth continues, Iran could potentially break the regional record for tourist arrivals in 2025, surpassing countries like Jordan (6.1 million in 2024) and even challenging the UAE’s numbers (25 million in 2024), especially as it continues to offer visa-free or visa-on-arrival access to 43 countries.

Conclusion: A Shifting Global Tourism Landscape

Trump’s 2025 tariffs are reshaping the global tourism industry, with countries like Vietnam, China, Spain, and Thailand facing significant declines in tourist arrivals. From Vietnam’s projected drop to 13.5 million tourists to Spain’s estimated 87 million, the numbers tell a story of economic disruption. Meanwhile, tariff-free destinations like Iran may emerge as unexpected winners, potentially setting new regional records. How will these changes affect your travel plans? Share your thoughts in the comments below!