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Donald Trump’s border crackdown and excessive tariff hikes are shaking up both the tourism industry and global stock markets.
The controversial president is having a significant effect on tourism, with new data suggesting that his actions could cost America billions of dollars.
Federal statistics show that overseas visitors to the U.S. dropped by 2.4 percent in February 2025 – the first full month of Trump’s presidency – compared to the same period last year.
Trump and his administration have made it clear that their focus is on removing illegal immigrants, with reports of temporary visitors with harmless plans being detained.
Jasmine Mooney, a Canadian actor, was held in detention for 12 days after arriving at the U.S. border and requesting a new visa, while Welsh comic artist Rebecca Burke was detained for three weeks for doing chores in exchange for accommodation.
This dramatic shift has had a significant financial impact on America, hitting them where it hurts: their wallets.
A Canadian resident visiting California for the Game Developers Conference (GDC) shared, “(My friend) didn’t come because they were afraid. There’s not a single person I know who didn’t hesitate.”
“Random people in my building told me to be careful… nobody who’s paying attention is going to trust the U.S. for another ten years.”
Meanwhile, Canadian MP Charlie Angus previously urged, “I am here today to say to Canadians to avoid travel to the United States if at all possible, and to call on our government to stand up for our Canadian citizens who are being denied their rights by arbitrary detention.”
Trump’s border czar, Tom Homan, has also doubled down on the administration’s efforts to round up those they believe should not be in the country.
He stated: “If they don’t like it, then go to Congress and change the law. We’re going to carry out this operation without apology.
“We’re going to make our communities safer… it’s all for the good of this nation. And we’re going to keep going. No apologies. We’re moving forward.”
Homan later added: “President Trump won the election on this one issue – securing our border and saving lives. What happened on our southern border in the last four years is the biggest national security threat our country has seen, at least in my lifetime.”
Tourism Economics, an industry research firm, has already forecasted a 5.1 percent decline in overseas travelers to America for 2025, reversing their earlier prediction of an 8.8 percent increase.
Trump’s obsession with tariffs has also taken a heavy toll, as stocks plummeted in after-hours trading following the former reality star’s announcement of broad tariffs starting at 10 percent.
Just minutes after Trump’s declaration, the S&P 500 dropped by 2 percent, and the Nasdaq saw a 3 percent decline—the steepest drop since the 2020 COVID-19 pandemic.
Some of Trump’s tariff increases include a 25 percent tariff on all foreign cars imported to America, and a 34 percent tax on imports from China. The 78-year-old also boasted about a 20 percent tax on imports from the European Union and a 24 percent tariff on goods from Japan.
“Taxpayers have been ripped off for more than 50 years, but that’s not going to happen anymore,” Trump declared from the White House.
He added, “They all understand—we’re going to have to go through a little tough love, maybe? But they all understand. They’ve been ripping us off, and they know it.”
