Trump has said the tariffs are necessary to remedy an expansive trade deficit with Canada. (The country exports more to the U.S. than it imports.)

However, America’s decline in international tourism has helped fuel a travel trade deficit, as more Americans are travelling abroad than international tourists are visiting the U.S.

The U.S. has historically enjoyed a travel trade surplus. But for 2025, the Travel Association forecasts a deficit of nearly $70 billion US.