Why Trump’s tariffs could be a surprise win for Europe’s hotels

Posted by author February 18, 2025 Travel

A stronger dollar and Canadians boycotting the US are leading many to change their travel plans.

Trump’s tariff threats and economic uncertainty are causing Canadians to ditch the US and travel to Europe instead. Americans are planning to join them on the old continent, thanks to the US dollar stretching further in travel money. While Americans living in Europe say they’re definitely staying put, seeking to avoid their “toxic and expensive” homeland.

As the new US President’s many policy changes are revealed, Euronews Travel looks at what impact they might have on travel.

Will the US dollar be strong in 2025?

If economists are right, the US dollar will strengthen further against foreign currencies. Even the threat of a new tariff policy means that major world currencies – like the euro – get weakened by moving interest rates.

This then grants Americans who wish to travel outside the states better buying power, potentially enjoying longer or more luxurious trips if they book guided tours, accommodations and restaurants in the local currency.

US expats in Europe plan to stay away from ‘toxic’ America

Craig Sauers, an American based in Tbilisi, Georgia, was already living abroad when Trump won in 2016, which he says came as “a shock.”

As an American abroad, he feels “ashamed, embarrassed and angry” and was “appalled that so many Americans bought into his messaging” eight years later.

“I certainly don’t plan to move back to the US anytime soon. MAGA regime change is one thing, but inflationary pressures also haven’t eased at all. The US is both toxic and expensive right now, and that’s a bad mix,” says Sauers.

“I do hope to visit, though. I’m not getting any younger, and I can’t let my pride get in the way of relationships with my parents, siblings, and nieces and nephews.”

Jared Batzel currently lives in Madrid and is studying for his MBA. He previously served in the US military and other public-sector roles, including USAID which has been all but closed down under Trump.

“I’ve always periodically boomeranged back to the United States for one reason or another… but the returns have been increasingly jarring,” he says.

Batzel is keeping his existing plans to visit the US in May, “mostly for personal or professional requirements”, but says there’s nothing he misses in America, despite being born and raised in a very pro-Trump region of America.

While he understands some complaints and frustrations that Trump voters have, he says he “doesn’t recognise much of America anymore.”

“I have many English-speaking colleagues in Spain who are from a few dozen countries. Many have worked in the United States before or were looking to in the future. Virtually all of them have reconsidered and are seeking more long-term opportunities in Europe or in their home countries,” adds Batzel.

“This goes beyond the politics of the day and includes things like inflation and cost of living, crime and mass shootings, and many other reasons that have made the American brand toxic on the world stage.”

Why are Canadians cancelling travel to the US?

After the Trump administration threatened Canada with hefty tariffs in its first few days in office, prime minister Justin Trudeau told citizens to “choose Canada”.

“It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer,” Trudeau said.

Canada listened, too, according to the latest data.

“Already, Flight Centre experts have helped several Canadians pivot away from their US vacations and rebook elsewhere,” Flight Centre Travel Group in Canada told Open Jaw, a daily news site for Canadian travel agents.

“One of our long-time customers cancelled a trip to Arizona over the weekend and now plans to bring her family to Portugal instead,” the travel company confirmed.

Some of these trips are “bucket-list and milestone experiences,” costing between €6,700 and €13,480. Planned cruises are also being cancelled because many stop off at US ports.

It’s not just leisure travellers who are cancelling: A recent Corporate Traveller/YouGov survey reveals that 40 per cent of Canadian small and medium-sized businesses have already cut anticipated US-bound business travel. US customs lines in major Canadian airports are reportedly already much quieter.

According to the US Travel Association (USTA), Canadians are the top source of international visitors to the United States. They enjoy the warmer climes of Florida, California, Nevada, New York, and Texas. In 2024, 20.4 million Canadians visited the US, spending $20.5 billion (€19.60 bn).

Tariffs – when goods imported from other countries are charged a tax, typically a percentage of a product’s value – are a significant part of Trump’s economic plans.

In the first few days of office, the new US administration introduced a 10 per cent tax on all products from China and has also proposed introducing tariffs on products from Canada and Mexico.

Whether the tariffs come or not, Canadians are saying they will continue to cancel. Air Canada will cut several routes to Florida, Las Vegas, and Arizona starting in March, citing the tariff dispute and the weakened Canadian dollar, reports Travel and Tour World.

Hawaii fear fewer holidaygoers in 2025

Although Hawaii is a popular holiday destination with a distinct cultural identity from mainland America, the archipelago relies on the US dollar and so is also seeing fewer visitors due to tariff threats imposed on foreign imports.

Demand for WestJet, a local airline that flies from the US to all the major Hawaiian islands, has dropped by 25 per cent in recent weeks, according to local media, Khon2.

Locals who rely on tourism on the island are now pleading with international visitors not to cancel their trips.

Whether the islanders’ requests to support Hawaii’s vital tourism industry are heard, time is yet to tell.