With President Trump intensifying his protectionist trade policies, consumers in foreign countries are responding by boycotting US products and cutting back on tourism, potentially affecting US economic growth. A recent analysis by Goldman Sachs predicts that these boycotts could reduce US GDP by 0.1% to 0.3% in 2025, translating to a loss between $28 billion and $83 billion based on the current growth forecast.

The majority of consumer boycotts have been observed in Canada, where over half of consumers have initiated some form of boycott. This has led to significant decline in sales of American alcohol in Canada as provincial alcohol monopolies have removed US products from their shelves.

The trade tensions have escalated as the US continues to announce tariffs, with President Trump planning reciprocal levies on all trade partners and imposing tariffs on foreign-made vehicles. This aggressive stance has tarnished global perceptions of US companies and the country as a whole, with brands associated with Trump experiencing a decrease in favorability and purchase intentions.

Additionally, there has been a decline in tourist visits to the US, which contribute significantly to the US GDP. European Union and Canadian visitors, who spend around $50 billion annually in the US, are avoiding trips due to the trade disputes. Data from US airports show an 11% decrease in foreign arrivals compared to a 5% growth in US returnees.

As companies begin to provide warnings about the impact of these trade conflicts, Air Canada has highlighted a sharp decline in travel demand between the US and Canada, reflecting broader industry trends showing a 70% decrease in passenger bookings on Canada-US routes.