by Daniel Brouse
March 21, 2025
Retaliatory tariffs are just one piece of the broader economic damage facing the U.S. economy. Equally significant—but often overlooked—are the growing international boycotts against the U.S., which further erode economic stability. For example, Canada has reported a staggering 40% decline in travel to the U.S., a trend that could potentially cost the U.S. economy hundreds of thousands of jobs across tourism, hospitality, retail, and transportation sectors. Such boycotts, whether driven by political tensions, safety concerns, or policy disagreements, compound the impact of tariffs by reducing foreign investment, consumer spending, and business engagement with the U.S. If this trend continues, it could signal a long-term shift in global economic relationships, with ripple effects on trade, job creation, and overall economic growth.
International boycotts against the U.S. are having widespread economic consequences across multiple industries, beyond just the drop in Canadian tourism. Here are several other key examples:
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China’s Shift Away from U.S. Agriculture – In response to trade tensions and tariffs, China has significantly reduced its imports of American soybeans, pork, and other agricultural products. U.S. farmers, particularly in the Midwest, have suffered major financial losses, with some forced into bankruptcy.
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European Consumer and Business Boycotts – Following political disagreements over climate policies, trade, and foreign relations, some European consumers have actively avoided American brands. This includes a decline in sales for U.S. tech companies, fast food chains, and clothing brands, as consumers opt for local or alternative suppliers.
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Decline in International Students – The U.S. has historically been a top destination for international students, contributing billions to the economy through tuition, housing, and living expenses. However, visa restrictions, anti-immigration rhetoric, and concerns about safety have led to declining enrollments from countries like China and India, benefiting countries like Canada, the U.K., and Australia instead.
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Tourism Declines from Multiple Countries – While Canada’s 40% drop in travel to the U.S. is alarming, similar trends have been observed in Europe and Asia. Negative perceptions of the U.S. as a safe or welcoming destination have led to fewer visitors, reducing revenue in hotels, restaurants, theme parks, and local attractions.
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Foreign Investment Diverted Elsewhere – Some multinational corporations and sovereign wealth funds are choosing to invest in Europe and Asia instead of the U.S. due to concerns over economic instability, political unpredictability, and trade barriers. This affects U.S. job creation and limits economic expansion.
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Tech Sector Challenges – U.S. companies like Apple, Google, and Microsoft have faced boycotts or restrictions from foreign governments and consumers, especially in China and the EU. In some cases, foreign companies are developing their own alternatives, reducing dependence on American technology and services.
These boycotts, combined with tariffs and trade wars, are contributing to a slow erosion of U.S. economic dominance. If the trend continues, the U.S. risks long-term damage in key sectors that have traditionally been strong pillars of growth.