Donald Trump’s trade tariffs have had a severe knock-on effect on one of the US’s most vital industries, new data has revealed. According to hotel search site Trivago, holidaymakers in countries that have been hit hardest by Mr Trump’s tariffs are steering clear of the US as a travel destination.
Furthermore, findings suggest that British tourists, and those in America, are turning to staycations within their own home nations amid concerns over uncertain economic times. Trivago revealed that there has been a double-digit percentage decline in bookings to the US by tourists from Japan, Canada and Mexico, the latter of which were both hit severely by the president’s tariffs on February 1. A major sticking point among Canadians was Mr Trump’s continued suggestions that the country should be annexed as the 51st state of the US.
Elsewhere, demand among German tourists were “down heavily” according to Trivago’s findings, with hotel bookings also showing a decline, this time in the single-digits.
However, there appears to have been no significant change in the numbers of British tourists travelling to the US. This could be due to the fact that the UK has got off fairly lightly in the trade war, and, early this month, struck a historic trade deal that Mr Trump hailed the “first of its kind”.
Germany, on the other hand, has been repeatedly threatened with increased tariffs. The US President had threatened to impose an eye-watering 50% tariff on EU imports, however, he agreed to delay this following a call with European Commission President Ursula von der Leyen.
According to The Guardian, the American tourism industry is worth around $2.6 trillion (£1.9 trillion). However, concerns are growing among industry businesses about a “Trump slump” due to the effect the tariffs are having on the global economy.
Preliminary figures from the federal government’s National Travel and Tourism Office show that visits to the US from overseas fell by 11.6% in March compared with the same period last year.
Bookings made by Trivago also show that Americans are spending less on their trips, with higher demand for cheaper and lower-star accommodation.
“In times of uncertainty, people stay closer to home,” said Johannes Thomas, chief executive of Trivago.
As a result of Donald Trump’s policies, a growing number of US citizens are also ditching the US for the likes of Spain, Greece and Portugal. Americans are leaving the US for Spain in record numbers (57%) in order to escape the “ongoing Trump nightmare”.