This week, a look at the plummeting rates of international travel to the U.S. as foreigners increasingly feel the country is unwelcoming to them, as well as the impact the loss of tourism is already having on the fashion industry.
President Trump’s “America First” agenda is causing international travelers to put America last on their list of vacation spots.
According to new data from the International Trade Administration, an agency of the U.S. federal government, travel to the U.S. from other countries plummeted last month, dropping nearly 11% in March from the same period the year before. European and Mexican travelers, in particular, are steering clear of the U.S., with a decline of nearly 20%, while other regions like Asia and the Middle East saw travel to the U.S. fall by smaller, but non-zero, numbers.
The reason: The Trump administration has made America a less-than-welcoming place for foreign goods and people. The harsh tariffs that have caused such consternation for American businesses make it harder for foreign goods to enter the country. And numerous incidents, like a French scientist being turned away from the country for allegedly having privately criticized the President or a Canadian woman being detained without explanation for 12 days at the Mexican border to the U.S., have made the prospect of entering the country fraught and sometimes dangerous. Countries like Sweden and Canada are issuing travel warnings to their citizens to avoid going to the U.S., if possible, for just these reasons.
The effect on American businesses is already being calculated. Goldman Sachs estimated that the loss of tourism from tariffs and border incidents could cost the country $90 billion in lost revenue. For American fashion and beauty brands, the loss of valuable international customers is another blow in an already difficult year.
“Tourism once played a role in how foreign shoppers discovered our brand, especially in major U.S. cities,” said John Smith, vp of design at the American fashion and leather goods brand Poshele. “Even without a physical store, we’d get online orders from customers who first heard about us while visiting. That word-of-mouth visibility is harder to replace when tourist numbers fall. As a designer, I also think about how global customers interpret American fashion. The drop in tourism means fewer eyes on U.S.-based design. We have to work harder to get noticed internationally. The design now has to carry more weight because we can’t rely on in-person discovery.”
Smith told Glossy that the last few months haven’t just had immediate material effects on fashion brands, like increasing costs for materials and products through tariffs. It’s also had an intangible effect on the global mood.
“Trump’s isolationist stance chips away at the desirability of American-made fashion,” he said. “For years, international customers admired U.S. design because it felt progressive and open. Now that appeal is harder to maintain. The fashion industry doesn’t exist in a vacuum. Culture shapes how people respond to what we make. The current political tone adds friction instead of inspiration.”
These changes are happening only a few months after many analysts predicted 2025 would be a record year for tourism to America. The travel forecast company Travel Economics predicted last year that the U.S. would see a record 9% hike in tourism in 2025. This month, it revised that estimate to the opposite: U.S. tourism would decline by 9%. Last year, international travelers spent about $254 billion in the U.S., but Bloomberg now estimates that retail spending will drop by $20 billion in the country this year.
And it’s not just fashion being affected. Jamielynn De Leon is the owner of The Rogue House, a beauty and hair salon based in New York City that’s an official partner of New York Fashion Week. De Leon told Glossy that approximately 30% of Rogue House’s high-ticket service revenue comes from international travelers, mainly from Europe and Asia. Those clients also spend 40-60% more per visit than domestic clients. Already this year, Rogue House has seen a 22% decline in bookings from international travelers, resulting in a 15% loss of revenue in this quarter.
“The dual pressures of increased tariffs and declining international tourism are creating a perfect storm for luxury fashion and beauty retailers in major U.S. cities,” she said. “The new tariffs have forced us to increase pricing on imported professional products and equipment, while simultaneously losing the high-value international clientele who typically don’t hesitate at premium pricing. The combination is squeezing margins from both ends.”
There is hope among both fashion and beauty brands and retailers that the Trump administration will back down on at least some of the tariffs. Pressure from businesses may be able to sway that outcome. The president already said he would exempt smartphones and other electronics after pressure from Apple. But that order was immediately undercut by the promise of future tariffs on Chinese electronics under a separate tariff rule.
It’s this uncertainty and constant back-and-forth that has been such a pain to navigate, according to numerous fashion brands Glossy has spoken with in recent weeks. The loss of tourism may be yet another knock-on effect from the chaos of the first few months of Trump’s second term, and brands are as concerned as ever about how they’ll be able to manage.
“For luxury beauty businesses in major tourism hubs like NYC, Miami and Los Angeles, this could represent a catastrophic revenue gap that domestic spending simply cannot fill,” De Leon said.
Executive Moves
- Moda Operandi, the online fashion retailer, announced that April Hennig has been promoted to the newly created role of president. Hennig was formerly the chief merchandising officer and will now report directly to CEO Jim Gold.
- Condé Nast appointed Alex Sun, who runs the Chinese editions of its magazines W and Marie Claire, to be the new executive editor of GQ Hong Kong. His first edition as editor is expected to run in September.
News to know
- Both Shein and Temu, major targets of the U.S. tariffs, plan to increase their prices later this month. In statements, both companies cited the necessity of increasing prices to match their newly increased costs. The new prices will go into effect on April 25.
- While other brands are looking for ways to do more production in the U.S., Nike is turning its attention toward China. It plans to open a new creative studio in Shanghai later this year. New CEO Elliot Hill has identified Shanghai as one of Nike’s five most important cities, along with New York, Los Angeles, London and Beijing.
- CaaStle, the fashion rental platform which was rocked by alleged fraud on the part of its co-founder Christine Hunsicker, received a $2.75 million loan to stave off bankruptcy while it deals with the fallout. Earlier this week, Axios reported that CaaStle’s board of investors knew about Hunsicker’s alleged fraud for months before it was made public.
Inside Glossy’s coverage
From diamonds to duties, tariffs are cutting into fine jewelry
