US economy set to lose billions as foreign tourists stay away

Goldman Sachs estimates in a worst-case scenario, the hit this year from reduced travel and boycotts could amount to almost $90bn

Tourists ride the Staten Island Ferry in New York City. Many potential visitors are now rethinking their holiday plans amid increased hostility at the border, rising geopolitical frictions and global economic uncertainty. Picture: Getty Images

The US 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 US by plane dropped almost 10% in March from a year earlier, according to data published by the International Trade Administration. Goldman Sachs Group 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 $90bn.