Foreign Travelers Boycott USA After Tariff War Erupts

From President Trump's long-threatened trade war on day one to last week's "Liberation Day" tariff blitz, the escalating trade war with China and other major trading partners appears to have triggered a foreign traveler boycott of the U.S.—even as domestic travel by U.S. citizens remains solid. 

Goldman analysts Catherine O'Brien and Jack Ewell told clients Monday that U.S. airlines recently slashed revenue guidance, citing transitory factors, reduced government travel, and economic uncertainty affecting last-minute bookings. They said that while there were earlier signs of recovery in future peak travel periods, growing economic and geopolitical instability is now expected to weigh further on demand.