U.S. economy is set to lose billions as foreign tourists stay away

The U.S. economy is set to lose billions of dollars in revenue in 2025 from a pullback in foreign tourism and boycotts of American products, adding to a growing list of headwinds keeping recession risk elevated. Arrivals of non-citizens to the U.S. by plane dropped almost 10% in March from a year earlier, according to data published Monday by the International Trade Administration. Goldman Sachs Group Inc. estimates in a worst-case scenario, the hit this year from reduced travel and boycotts could total 0.3% of gross domestic product, which would amount to almost US$90b. Foreign tourism has been a tailwind for the U.S. in recent years as the cessation of pandemic-era restrictions sparked a resurgence of international travel. But many potential visitors are now rethinking their vacation plans amid increased hostility at the border, rising geopolitical frictions and global economic uncertainty. One of them is Curtis Allen, a Canadian videographer who cancelled an upcoming U.S. vacation after U.S. President Donald Trump imposed punitive tariffs on his home country and suggested it should become the 51st U.S. state. Allen and his partner have been on multiple camping trips to Oregon over the years, but this year, they will be travelling around British Columbia instead.<br/>