How American Travelers Are Reacting to Trump Tariffs

While Americans may be reeling from the latest round of Trump Administration tariffs, they're not letting the country's sudden economic downturn dampen their enthusiasm for travel.

The Dow Jones Industrial Average slid more than 300 points by Monday of this week on the heels of President Donald Trump's rollout of 10 percent baseline tariffs impacting more than 180 countries, including historic allies.

And over the course of three days of trading sessions since Trump's announcement last Wednesday, the S&P 500 has lost more than 10 percent, which is the worst stretch of trading since the end of the Second World War, per Reuters.

Stock market meltdowns are also sweeping across the globe, per Reuters, erasing more than $10 trillion from major markets amid the spiraling concerns related to Trump's tariffs.

Bill Ackerman, the billionaire investor and head of Pershing Square Capital Management, a hedge fund management company, said on X that the U.S. is "heading for a self-induced, economic nuclear winter, and we should start hunkering down" thanks to what he called Trump's "massive and disproportionate tariffs on our friends and our enemies alike."

Amid this turbulence and stock market decline, U.S. household wealth has taken a major hit. The wealth of households heavily invested in equities had reached all-time highs at the end of 2024, after two years of record stock market gains under the Biden presidential administration.

Despite (or in spite) of the gloomy economic news, Americans say they intend to keep traveling still. That's according to a flash survey of 1,000 U.S. adults, which MMGY conducted from April 3 through April 5.

The just-released survey found that more than 8 in 10 U.S. consumers still plan to travel for leisure over the next 12 months, despite recent announcements regarding tariffs and declines in the market.

Specifically, the survey revealed that:

• Despite the recent executive orders and financial news, 83% of U.S. consumers still intend to travel over the next 12 months. That's down just 4% from MMGY's last Portrait of American Travelers study, which was fielded in mid-February. 
• 74% of U.S. consumers feel somewhat to extremely confident in their household's financial situation for the next six months. This likely contributes to the fact that 70% of U.S. consumers intend to travel over the coming six months. 

"Even in the face of economic uncertainty and polarizing headlines, the American traveler continues to show remarkable resilience," said MMGY Global CEO Katie Briscoe.

Travelers Adjust Plans Rather Than Cancelling

However, it won't be entirely business as usual for American travelers amid the tariff turmoil. The MMGY survey found that the sharp downturn of the U.S. economy over the past three months will bring about some nuanced changes in how and where Americans choose to travel moving forward.

For instance, 80 percent of MMGY survey participants said they intend to alter their travel behavior due to America's economic woes. Of that figure, 33 percent said they will travel closer to home.

Additionally, 29 percent said they will change from international to domestic destinations. Further, 24 percent of those surveyed indicated that they will change to a less expensive mode of transportation and 22 percent say they will change their length of stay for an upcoming vacation.

These statistics ring true for Debra Brown, CEO and president of SmartBird World Travel and SB World Luxe Travel. Brown's clients have been making changes to their travel plans on the heels of the tariffs.

"I've absolutely seen some clients—especially retirees—begin to scale back, reduce the number of trips or delay fall travel plans, particularly for September," Brown told TravelPulse. "Several have expressed concerns about the recent dip in their retirement portfolios and the overall uncertainty in the financial markets."

Even Brown's clients who have the financial means to move forward with travel plans are citing the rising cost of essential goods as a reason to pause and reassess discretionary spending like travel.

Travel Resilience Expected to Prevail Long-Term

Not all travel industry insiders are witnessing the same concerned reaction from consumers as Brown. Tamara Lidbom, owner of Anytime Travel Agency in Phoenix, Arizona, says it's been business as usual for her clients.

Lidbom, who has been speaking with clients about the tariff situation, specializes in helping clients book and create itineraries for international vacations.

"Clients who were planning a trip are still planning that trip," Lidbom told TravelPulse. "We are not seeing a decrease in bookings or anyone saying they are worried about their finances and affording this trip." 

The stock market is a concern for people, Lidbom admitted, but her clients are not paying for travel from retirement accounts, which have been heavily hit by the stock market decline.

Moreover, the price of travel has not been impacted by Trump's actions, at least thus far.

"This may have a negative effect down the road, but right now, costs are the same and people's desire to go on vacation is still high," Lidbom explained.

If the cost of flights or hotels suddenly starts to spike, alongside all the other essential costs that have been rising under the new presidential administration, then the continued penchant for travel may begin to wane, Lidbom and others predicted.

For now, however, all of the newfound political turmoil in the United States has many Americans feeling like they need their vacations more than ever, says LaDell Carter, founder and lead luxury lifestyle travel Designer at Royal Expression Travels

"Our clients—many of whom are visionary high-performing individuals are more eager than ever to unplug from the noise and tap into peace, purpose, and perspective," Carter said. "Economic fluctuations? They've long out-earned their monthly expenses by multiples. Their currency is time, their luxury is wellness, and their urgency is to reset."

Those closer to the median income may shift travel behaviors subtly, opting for a four-star hotel perhaps, instead of a five-star property. Those same travelers may select a sedan instead of car service to reduce costs. But make no mistake, they too, are continuing to pursue the benefits associated with travel.

"They aren't postponing joy. They're prioritizing peace. And that often begins with getting on a plane," adds Carter. "The refrain I hear most? 'Get me out of here—I need to breathe again.'"

"Travel isn't a luxury for them. It's how they recalibrate. It's how they stay well," Carter adds

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