Trump Tariffs: Rising Travel Costs 2025

In February 2025, President Donald Trump announced significant tariffs: a 25% additional tariff on imports from Canada and Mexico, and a 10% additional tariff on imports from China. Energy resources from Canada face a lower 10% tariff. These measures aim to hold these countries accountable for halting illegal immigration and stopping the flow of drugs into the U.S. (WhiteHouse.gov).

These tariffs are poised to impact various sectors, including travel. Travelers should be aware of potential cost increases in transportation, accommodation, dining, and recreational activities, which could significantly affect their overall trip budget.

The Impact of Tariffs on Travel Expenses

1. Transportation Costs on the Rise

Air Travel

• Airlines depend on imported aircraft parts and fuel, both of which may see price increases due to tariffs.

• Expect ticket prices to rise as airlines pass these additional costs onto consumers.

• Example: If a domestic round-trip ticket currently costs $400, a 6% price increase would add $24, bringing the total to $424.

Fuel Prices and Road Trips

• Tariffs on Canadian energy imports could lead to higher gasoline prices, particularly in regions like the Midwest, where Canadian crude oil is a major supplier.

• Expect an estimated 4-7% increase in fuel costs. If gas costs $3.50 per gallon, this could raise prices to between $3.64 and $3.75 per gallon.

• Example: A road trip covering 1,000 miles at 25 MPG currently costs $140 in gas; after a 5% increase, the cost rises to $147.

2. Accommodation Price Hikes

Hotel Operations

• Hotels rely on imported goods such as furniture, linens, and electronics, all of which could become more expensive.

• Increased operating costs could result in room rates rising by 5-8%.

• Example: A hotel stay currently priced at $150 per night may increase by $7.50 to $12, bringing the total to between $157.50 and $162 per night.

3. Food and Dining Costs

Imported Food Products Affect Restaurant Prices

• Restaurants using imported ingredients, such as seafood, fresh produce, and coffee, will face higher costs.

• Expect menu prices to rise by 5-10%.

• Example: A meal that currently costs $25 may increase to $26.25 - $27.50 per person.

4. Recreational Activities and Entertainment

Tourism Services

• Many recreational activities depend on imported goods, such as ski resorts (equipment), theme parks (merchandise), and boat tours (imported vessels).

• Activity costs may increase by 5-10%.

• Example: A guided boat tour that costs $100 may rise to $105-$110.

Unexpected Costs: Souvenirs and Essentials

• Souvenir Prices: T-shirts, keychains, and other merchandise often come from China or Mexico.

  • A souvenir T-shirt that costs $20 could increase to $22-$23 due to tariffs.

  • Keychains priced at $5 may rise to $5.50-$6.

• Travel Essentials: Items like sunscreen, toiletries, or over-the-counter medications could see price hikes of 5-10%.

  • A $10 bottle of sunscreen might now cost $10.50-$11.

Total Estimated Daily Increase for Travelers

How to Save on Travel Despite Higher Costs

• Book early to lock in current prices before tariff-driven increases take effect.

• Choose domestic destinations where locally sourced goods and services are available.

• Be flexible with travel dates and locations to find better deals.

• Seek all-inclusive packages that may absorb some increased costs.

• Use travel rewards and loyalty programs to offset rising expenses.

📊 Visual: Infographic summarizing total daily cost increase.

Final Thoughts

As tariffs continue to reshape the travel industry, the cost of leisure trips could see noticeable increases. While these price hikes may not deter all travelers, being aware of how tariffs impact transportation, lodging, dining, and entertainment can help travelers budget effectively. By staying informed and making strategic travel decisions, you can still enjoy your trips without breaking the bank.

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