Trump wanted to reduce trade deficits, but at least one has ballooned since he took office

Core Insights - The travel trade deficit in the United States has significantly increased, reaching nearly $70 billion for 2025, as international visitors are spending less in the U.S. while Americans are traveling abroad more [2][5][6] Industry Overview - Travel is a crucial export sector for the United States, encompassing services consumed by foreigners, such as hotel stays [3] - Historically, the travel industry has generated a trade surplus, but recent trends show a reversal with a $50 billion deficit reported in April 2023, compared to a $3.5 billion surplus in 2022 [5] Visitor Trends - The U.S. is expected to see a 6.3% decline in international arrivals in 2025 compared to 2024, marking the first decrease since 2020, with visitor spending projected to drop by 3.2% [6] - The decline in Canadian visitors has been identified as a primary factor contributing to the travel trade deficit, with a nearly 34% drop in Canadians returning from the U.S. by car in August compared to the previous year [10][11] Future Outlook - Upcoming major events, such as the FIFA World Cup and the 250th anniversary celebrations of the U.S., are anticipated to help reverse the decline in international visitors [12] - However, potential challenges remain, including increased visa fees, longer wait times for visa applications, and negative sentiment towards the U.S. in key markets, which could further deter international visitors [13]