3 Ways Trump’s Tariffs Could Drive Up the Costs of Summer Travel
Written by
Laura Bogart
Edited by
Kristen Mae
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As the weeks tick down and the temperature ticks up, you’re likely making your summer travel plans. You’ve picked your destination and assembled your traveling companions, chosen the sights to see (some more touristy than others), and the restaurants to splurge on. You’ve also created your list of items you need to make the plane, train or automobile ride more comfortable.
Of course, savvy saver that you are, you’re already building your travel budget. However, in all your preparations, you might have overlooked one key thing: tariffs. That’s right — the tariffs that have been dominating the news could also put a financial damper on your vacation plans if you’re not prepared.
Understanding how the Trump administration’s tariffs could drive up the costs of summer travel can help you plan and budget more effectively.
Air Travel Prices Could Soar
If you’re one of the millions of Americans planning to fly this summer, you could face bigger hassles than those long TSA lines. Aircraft manufacturers rely heavily on imported aluminum, steel and other parts — many of which are likely to be impacted by tariffs. As production costs rise, airlines may pass those costs onto travelers through higher ticket prices.
Airlines often hedge fuel costs, but those too can be impacted by broader trade disputes, especially if supply chains are disrupted. So as you budget for airfare, it would be wise to consider adding a cushion to your budget to offset any unexpected hikes — or buying your tickets sooner rather than later.
Hotels May Raise Rates or Cut Amenities
The hotel industry is also bracing itself for tariff-related downturns. After the tariffs’ rollout on April 2, The Dow Jones U.S. Hotel & Lodging Index declined — a clear sign of investor anxiety.
When Hotel Dive explored the issue, writer Noelle Mateer noted that while tariffs may not target the hospitality industry directly, the sector could become collateral damage. That includes price pressures from affected supply chains and decreased international travel due to the bad blood that Trump tariffs have stirred up.
According to a release from Tourism Economics, Trump’s broader policies had already begun to shift international sentiment negatively toward the U.S. even before tariffs were officially announced. The firm projected that international travel to the U.S. would decline most sharply in 2025, with lingering effects throughout the rest of Trump’s second term.
With potential visitors from Canada, Europe, and Asia feeling put-off by the tariffs, some experts speculate that the international travel that has been a lifeblood for the hospitality industry could be curtailed — which may compel hotel chains to raise prices for domestic travelers or scale back amenities to maintain margins.
Food and Souvenirs Could Take a Bigger Bite
A vacation just isn’t a vacation without a splurge on local food and a backpack full of quirky souvenirs. But both might cost more than you expect. Thanks to tariffs, products such as avocados, seafood, coffee, wine, tequila, whiskey, beer, tomatoes, beef, cheese, chocolate, and olive oil could give your wallet some pretty high cholesterol.
Unfortunately, your dining out plans aren’t the only parts of your trip that could get more expensive. Ever wonder where your favorite theme park souvenirs come from? Or the ones in that locally owned shop on the beach? Likely, they come from countries affected by trade disputes. If tariffs increase wholesale costs, retailers are likely to raise prices — or cut back on inventory.
Bottom Line
When you’re planning your summer travel, don’t forget to account for the less visible costs that tariffs can introduce. Whether it’s airfare, hotel rates or dinner out, the ripple effects of Trump-era tariffs could give your travel budget a sunburn — unless you plan ahead.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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Sources:
- Hotel Dive, “How Trump’s tariffs may impact hotels”
- Tourism Economics, “US Rolls Up Welcome Mat for International Travel”
