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[Yanolja Research Brief] Vol.6 Trump’s Reciprocal Tariff Policy and Its Implications for Global Tourism

How New U.S. Tariffs Are Transforming Global Tourism

Global tourism is entering a new era. Recent U.S. trade policies are sending shockwaves through economies and reshaping travel patterns worldwide. Here’s a look at the key trends and what they mean for travelers, businesses, and industry leaders.


Global Economic Shifts and Tourism

  • A new 10% universal tariff on all U.S. imports, with even higher rates for certain countries, has triggered immediate market volatility and concerns about rising costs and supply chain disruptions.
  • These changes go beyond goods: the tourism sector-reliant on affordable travel, international cooperation, and positive sentiment-is especially vulnerable.
  • Economists warn of higher consumer prices and a squeeze on household budgets, which could lead to less discretionary spending on travel and leisure.


Impact on the U.S. Travel Market

  • Rising costs for hotels and airlines are expected as tariffs drive up prices for construction materials, furnishings, and imported food products.
  • Hotels face a tough choice between raising prices (risking customer loss) or absorbing costs (hurting profitability), with mid-range hotels feeling the greatest pressure.
  • Airlines anticipate increased maintenance and fleet expenses, leading to possible route reductions and service cutbacks.
  • International visitor numbers to the U.S. are projected to fall, with anti-American sentiment and diplomatic tensions further discouraging travel. Notably, Canadian travelers may decline by 15%, and similar trends are expected from Europe and Asia.
  • The overall result: a potential $64 billion drop in U.S. tourism revenue in 2025.


New Travel Patterns: Regionalization and Slowdown

  • Travelers are increasingly choosing destinations closer to home. Canadians are favoring domestic trips or the Caribbean, while Asian tourists are looking to Japan, South Korea, and Southeast Asia instead of the U.S.
  • European travelers are expected to explore their own continent rather than crossing the Atlantic.
  • The global tourism sector, which thrived on international mobility, is seeing a shift toward regional travel and slower overall growth.
  • Business travel and major events may also see cutbacks, reducing the broader economic impact of tourism.



Want to Learn More?

What challenges and opportunities could South Korea face in this shifting tourism landscape?

and How are industry leaders across the globe responding to these global changes? 


Discover in-depth analysis, actionable insights, and the full story on how these changes may affect your business or travel plans. Visit our official website for the complete report.

Yanolja Research Brief Vol.6

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Location: Seoul, South Korea

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