
Aussies are traveling to the US in droves, despite Trump's strict border stance: report
According to new data released by the Australian Travel Industry Association (ATIA), travel from Australia to the US increased by 4.8 percent year-on-year and was up 8 percent in May 2025 compared to May 2024.
Advertisement
Figures from the Australian Bureau of Statistics (ABS) were also up in various categories including traveling on a holiday (up 12 percent compared with last year), visiting friends or relatives (up 15 percent) or for business (up 8 percent).
It shows a solid improvement compared to April where there was a 6.2 per cent decline.
US inbound travel to Australia, however, slipped by 3.7 percent in May and remained flat year-on-year with a modest 0.6 percent rise.
'The USA remains popular with outbound travelers, but the muted inbound response highlights challenges in achieving a balanced two-way tourism recovery,' ATIA director of compliance and membership, Nina Hedges said.
Destinations Aussies are travelling to over the US
Advertisement
The US continues to take a back seat to destinations like Bali, Japan and Vietnam, which lead the way as Australia's favourite overseas locations.
According to recent ATIA figures, for the year ending May 2025, outbound travel surged by 12.5 percent to 12.21 million trips, driven by a strong appetite for travel across Asia.
Standout growth included Indonesia (Bali) up 16.3 percent, Japan, up 32.4 percent, Vietnam, up 25.8 percent and China, up 26.9 percent.
3 More Australians are heading to the United States despite being previously affected by President Donald Trump's strict border policies.
AFP via Getty Images
Advertisement
'Asia continues to shine as the preferred playground for Australian travellers, with Bali, Tokyo and Ho Chi Minh City topping itineraries for millions,' Ms. Hedges said.
Japan specifically continues to see a growth in visitor numbers thanks to expanded flight options and the region's strength with the AUD, allowing it to stretch further for accommodation, dining and shopping.
'Australia's love affair with America could fade'
Flight Centre chief executive and founder Graham Turner told news.com.au that in the first three months of 2025, leisure bookings to the US from Australia dropped about 12 to 15 percent compared to last year, while business travel remained 'on par'.
But he anticipated the decline to 'accelerate' for both leisure and business travel across April, May and June.
Advertisement
June figures are yet to be released.
Meanwhile, Sarah Megginson, a personal finance expert at Finder, previously said perceptions of hostility and the current political climate 'could see Australia's love affair with America fade.'
She warned Australians to check their travel insurance policies carefully before going to the US as many insurers would not provide cover if you are denied entry at the border.
3 Data released from the Australian Travel Industry Association (ATIA) shows travel from Australia to the US increased by 8% in May of 2025, compared to the same time a year ago.
WILL OLIVER/EPA/Shutterstock
There's been reported cases of tourists being denied entry on arrival and at times, strip searched and thrown in prison.
It comes as the US maintains strict immigration rules with significant emphasis on border security and entry eligibility.
'With tensions rising on American soil, Australians are rethinking holidays to the US at the moment,' Ms. Megginson told news.com.au in June.
'There's growing sentiment among Australians that the potential issues that could arise when visiting the US are beginning to outweigh the appeal of visiting some of our favorite cities.
Advertisement
'My husband recently got back from a week in Los Angeles, and he noticed a huge shift from previous visits: he was questioned in detail about all aspects of his trip and why he was travelling alone.
3 Data from the Australian Bureau of Statistics (ABS) also shows holiday travel to the U.S. went up by 12% compared to 2024.
AFP via Getty Images
'It was a really hostile welcome, and if travellers feel they're being treated like suspects at the border, they'll simply take their travel dollars elsewhere.'
Meanwhile, according to Finder survey results, it appears older Australians are less likely to be deterred by what is happening politically in the US, with this age group actually traveling to the States more on Intrepid trips this year than they did last year.
Advertisement
Leigh Barnes, who is the company's managing director of the Americas, told news.com.au his team had increased their focus on domestic travel within the US, promoting the right products at the right time, and increasing their brand presence.
Canadians visiting the US plummets
Other visitors from other countries aren't so enthusiastic about the US with Canada – the country's biggest market for international visitors – having plummeted more than 14 percent, according to the US International Trade Administration, with almost a million fewer Canadians so far in 2025 compared to last year.
Visitors from other countries, such as China, South Korea and Germany, have also declined.
The drop in Canadian figures come as then-Canadian Prime Minister Justin Trudeau told Canadians not to spend holiday dollars in the US after Mr. Trump's talks about tariffs and referring to Canada as 'the 51st state' in February.
Advertisement
He repeated that call to action until he left office in April.
Forbes reported that three-quarters of Canadians who had previously planned a trip to the US say the tariff announcements influenced their plans.
Over half (56 percent) of those who had been planning to visit the US have since decided to travel elsewhere, according to a survey by Leger Marketing of over 1,500 Canadian adults fielded mid-May.
Advertisement
Tourism Economics, which forecasts foreign traveller arrivals in the states, said the US is looking at a significant nine per cent drop in international arrivals for 2025, and a drop of $US8.5 billion – $A13 billion (-4.7 percent) in international visitor spending compared to last year.
The travel data company's May report cited factors contributing to the negative outlook include Mr Trump's administration posturing and policy announcements, such as 'Liberation Day' tariffs across longstanding trade partners.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Trump's trade deal with the EU: What it means for your wallet
Imported cars, pharmaceuticals, apparel and more could grow more expensive in the months to come as the United States imposes a 15% tariff on most imports from the European Union. Analysts have labeled the agreement, announced July 27, as a win for President Donald Trump, whose administration had been working to complete deals by a self-imposed Aug. 1 deadline. U.S. stocks opened mostly higher on July 28, with the S&P 500 and Nasdaq reaching record highs after Trump announced a tariff far below the 30% rate threatened earlier in the month. But for U.S. consumers, even the reduced tariff is expected to spur higher prices. The Yale Budget Lab estimates that Trump's tariffs, including the new rate for EU imports, would raise prices by 1.8% in the short run, the equivalent of an average household income loss of roughly $2,400. While the increase may sound insignificant, 'the Federal Reserve's inflation target is 2%. So we're talking about almost a year's worth of inflation above and beyond the inflation that we would've gotten anyways,' said Ernie Tedeschi, director of economics at the Yale Budget Lab. 'So that's meaningful.' Here are some of the sectors that could see higher prices in the months to come. European cars Automobiles, one of the EU's largest export sectors, will likely see some of the most noticeable price hikes, according to Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics. While the 15% tariff is a relief from the current 27.5% rate, Hufbauer said the auto industry's margins are thin enough that EU companies won't want to absorb the higher cost. 'I suspect European auto prices sold in the U.S. will go up probably at least 10%,' he told USA TODAY. German Association of the Automotive Industry President Hildegard Müller warned the 15% tariff could cost the German automotive industry 'billions annually.' Already, Volkswagen has trimmed its full-year sales forecast after reporting a $1.5 billion hit from tariffs over the first half of the year. Automobile price hikes will likely vary across European makes and models, according to Tedeschi, since many already operate factories in North America. That means trade deals with Canada and Mexico could also influence pricing. 'Consumers should keep an eye out for rising prices for European car imports, but they should not assume that all European brands are going to go up in price because of how complicated the supply chain is,' he said, adding that he expects to see price increases tied to the new EU tariffs play out this summer and fall. What were the EU tariffs before? What to know after trade deal Furniture Furniture is another sector that could get hit by tariffs, according to Stephen Brown, Capital Economics' deputy chief North America economist. The Swedish company IKEA, for instance, relies on China, Poland, Italy, Germany and Sweden to supply 'the majority' of products, according to its website. The company did not immediately respond to a request for comment, but Inter IKEA ‒ which produces IKEA furniture ‒ told Reuters in November that just 10% of the products it sells in the U.S. are made in the region. 'Unless they find somewhere else to import from or move around their supply chain, furniture prices ... could see some effects,' Brown said. Pharmaceuticals While certain sectors like wine and spirits appear to still be under negotiation, EU Commission President Ursula von der Leyen said pharmaceuticals will be covered by the 15% tariff, with certain generic drugs not subject to tariffs. The EU is behind about 60% of pharmaceutical imports to the U.S., according to Reuters, making them the largest European export to the U.S. by value. But Brown noted that pharmaceutical companies may be able to more easily shift production to the U.S. compared to other industries. For instance, the Danish manufacturer behind the GLP-1s Wegovy and Ozempic, Novo Nordisk, already has a presence in North Carolina and has plans to expand. 'Although there could be some short-term price increases, those might not be as durable as they are for other products,' Brown said. Additionally, consumers may not pick up on the industry's price hikes if their insurance covers the imported drug. Luxury items Luxury items like imported designer handbags and apparel could also see higher prices, as well as imported food. 'The difference between China and Europe, in terms of tariffs, is that the tariffs on China increase what people buy in Walmart and Target. The tariffs on European imports will mainly hit what people buy at Whole Foods and high-end retail stores,' said Hufbauer of the Peterson Institute for International Economics. He noted that the companies behind luxury goods tend to have higher margins, though, and may be more willing to absorb some of the higher costs tied to tariffs. Machinery Machinery and appliances are also major exports from the EU, accounting for roughly 20% of U.S. imports from the EU in 2021, according to the Commerce Department. While consumers won't buy machinery directly, experts warn the higher prices could eventually trickle down as manufacturers adjust to higher costs. 'These are not necessarily products that immediately or directly impact the consumers, but they can indirectly affect consumers, especially after many years,' Tedeschi said. This article originally appeared on USA TODAY: What Trump's EU trade deal means for your wallet Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20 minutes ago
- Yahoo
Trump visit gives Swinney golden opportunity to butter up president on Scotch whisky tariffs exemption
There had been much talk of the possibility of a frosty reception when the US president locked eyes with Scotland's first minister. Donald Trump and John Swinney are not natural friends. They couldn't be further apart politically speaking and personality-wise. However, it seems is enjoying his foreign holiday enough for the pair to park their differences and bond over their mutual love for . As Mr Trump departed the White House, he branded Mr Swinney a "good man" before turning up the love suggesting he had heard "good things" about the SNP leader. As close to an endorsement as it gets from Mr Trump. The White House extended an invite for a one-to-one meeting between the president and first minister but last night came another opportunity, in the form of a VIP dinner. Sources close to the Aberdeenshire banquet, where seafood was on the menu, described it as a "productive, interesting" event. I am told Mr Swinney and Prime Minister Sir Keir Starmer sat on either side of the president in an evening where they talked golf and trade in the company of around 20 others. POTUS (president of the United States) had earlier said he wanted to see Scotland "thrive" and clearly the presence of both Mr Swinney and Mr Starmer created the golden opportunity to butter up the president who is mulling over reducing Scotch whisky tariffs to zero. Sources in the room described the first minister as "landing some arguments" before the prime minister departed the event early. Ditching dessert apparently. But the dinner had all the ingredients to be an awkward encounter. The first minister previously called for the upcoming state visit with Mr Trump to be axed in the wake of the Volodymyr Zelenskyy White House shouting match earlier this year. And in true Mr Trump style, just hours before the Aberdeenshire summit the president had been freewheeling live on TV about Scottish independence - Mr Swinney's lifetime goal - saying a second vote on the country's future should be restricted to "50 or 75 years". An eye-bulging intervention from the leader of the free pair met again on Tuesday morning to talk business in a more formal, sober setting on the Aberdeenshire estate. Mr Swinney's team were wanting to talk about the growing humanitarian crisis in Gaza. Read more: Scotland has been at the epicentre of international politics for the past five days where, it seems, Mr Trump has been in listening mode. His new political friends will be hoping they have persuaded him to act harder on the pressing issues in the Middle East.
Yahoo
20 minutes ago
- Yahoo
US, China resume talks in Stockholm to ease tariff hostilities
By Greta Rosen Fondahn and Maria Martinez STOCKHOLM (Reuters) -U.S. and Chinese officials began a second day of talks in Stockholm on Tuesday to resolve longstanding economic disputes and step back from an escalating trade war between the world's two biggest economies. The meetings may not yield immediate large breakthroughs but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May. It may also pave the way for a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the year, though Trump on Tuesday denied going out of his way to seek one. The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister's office in central Stockholm. U.S. Treasury Secretary Scott Bessent was seen arriving at Rosenbad on Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristersson. China's Vice Premier He Lifeng also arrived at the venue. Neither side made statements after the first day of talks. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after reaching preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the United States, and a deal with Japan. The Financial Times reported on Monday that the United States had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Trump pushed back against suggestions he was seeking a meeting with Xi. "This is not correct, I am not SEEKING anything! I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!" he wrote on Truth Social. COMPLEX TALKS Meanwhile, in Washington, U.S. senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents, and Taiwan, emphasizing security and human rights, which could complicate the talks in Stockholm. Taiwan President Lai Ching-te is also set to delay an August trip his team had floated to the Trump administration that would have included stops in the United States, sources familiar with the matter told Reuters on Monday. The potential visit would have infuriated Beijing, possibly derailing the trade talks. China claims Taiwan as its own territory, a position Taiwan rejects, and denounces any show of support for Taipei from Washington. Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. Among broader economic issues, Washington complains that China's state-led, export-driven model is flooding world markets with cheap goods, while Beijing says U.S. national security export controls on tech goods seek to stunt Chinese growth. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption -- a decades-long goal for U.S. policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on U.S. industries.