Today’s Big Story

Tourists Are Ditching America

And it's set to cost the U.S. economy billions

It sounds like a good thing … at first. Less tourists getting in the way at hot spots around the country. But the reality is that the American economy is set to lose billions of dollars in revenue in 2025 from a pullback in foreign tourism and boycotts of American products, adding to a growing list of headwinds keeping the risk of a recession elevated.

Data released this week from the International Trade Administration shows that arrivals of non-citizens to the United States by plane have declined by over 11% since March 2024. According to Quartz, Canadians returning from visits to the U.S. by plane cratered 31.9% year-over-year last month, while air arrivals fell 13.5%. The U.S. Travel Association has projected that even a 10% drop in Canadian tourism could lead to a $2.1 billion loss and put 140,000 jobs in the hospitality industry in jeopardy.

Several European countries—including the United Kingdom, Germany, Denmark and Finland—have updated their travel advisories for citizens visiting the U.S., warning that updated visas and valid documents no longer guarantee entry. Bloomberg reports that Goldman Sachs Group Inc. estimates in a worst-case scenario, the hit this year from reduced travel and boycotts could total 0.3% of gross domestic product, which would amount to almost $90 billion.

As they put it, “it should come as no surprise that foreign tourism has been a tailwind for the U.S. in recent years as the cessation of pandemic-era restrictions sparked a resurgence of international travel.” But potential visitors are now rethinking their vacation plans amid increased hostility at the border, rising geopolitical frictions and global economic uncertainty.

And the American Bus Association put out a statement warning that the current climate will no doubt chill tourism: “Perhaps more acutely, isolationist policy, restrictive immigration, and nationalist rhetoric all have the potential to negatively impact inbound travel through direct travel restrictions and shifts in sentiment. This would mirror the effects observed during the first Trump administration, which saw declines in Mexico, China, and the Middle East. The current situation warrants broader concern, including Europe.”

Tariff Tensions Continue

U.S. is planning to use negotiations to isolate China

China appointed a new top international trade negotiator earlier today amid tariff tensions with America. Also on Wednesday in China, the government announced its economy expanded at a 5.4% annual pace in January-March, supported by strong exports. Analysts are forecasting that the world’s second largest economy will slow significantly in the coming months, however, as tariffs on U.S. imports from China take effect.

Here in the States, the White House plans to use ongoing tariff negotiations to pressure U.S. trading partners to limit their dealings with China, according to a report by the Wall Street Journal. The idea is to extract commitments from trade partners to isolate China’s economy in exchange for reductions in trade and tariff barriers imposed by the Trump administration. “U.S. officials plan to use negotiations with more than 70 nations to ask them to disallow China to ship goods through their countries, prevent Chinese firms from locating in their territories to avoid U.S. tariffs, and not absorb China’s cheap industrial goods into their economies.”

It’s meant to put a dent in China’s economy and force Beijing to the negotiating table with less leverage ahead of potential talks between Trump and Chinese President Xi Jinping. And speaking of trade wars, if you’ve been seeing videos from Chinese manufacturers trying to sell you “luxury” dupes straight from the factory, you might want to think twice before ordering.

First-Ever Sighting of a Colossal Squid

The mysterious creatures are notoriously difficult to capture on camera

The colossal squid—one of nature’s most elusive animals, and handily the world’s most massive squid species—was first identified 100 years ago using remains found in the stomach of a sperm whale. Now, for the very first time, one has been filmed alive in its natural oceanic environment.

The Schmidt Ocean Institute, a well-traveled ocean exploration group, has used a high-tech robot to film the first-ever confirmed footage of the deep sea dwellers, which live exclusively in Antarctic waters. As the submersible reached depths of around 2,000 feet below the surface, the baby squid suddenly drifted past the camera’s lens. Scientists gathered that it was quite young, by the size of it.

Fully grown colossal squid grow to around 23 feet long (though some individuals can be even larger), weigh in at over 1,100 pounds (which makes them both the heaviest squid and invertebrate on Earth), and have the largest eyes of any animal on record (at some 10.5 inches across, making them roughly the size of a soccer ball). Living in the dimly lit twilight zone of the sea, they often appear transparent, which helps them avoid predators and ambush prey. According to National Geographic, they accomplish this thanks to pigment sacs named chromatophores, which they often keep closed. Any remaining opaque body parts are obscured by light organs called photophores, which can glow by matching the level of sunlight trickling down from the surface.

The EU Might Ban Carbon Fiber

Racy car interiors could soon look …. less racy

Automakers use carbon fiber as a way to keep their vehicles light, yet strong. Sports car and EV makers especially love the lightweight material for its durability and weight savings. But if the European Union has anything to say about it, carbon fiber could be deemed a “hazardous material” under a new EU law, which could bring some big changes for automakers. The list also includes other hazardous materials that are used in automotive and aircraft manufacturing, including hexavalent chromium, cadmium, mercury and lead.

European regulators found that during breakdown and disposal, carbon fiber filaments could become airborne and do harm if they come into contact with human skin. The governing body also determined the material—which consists of micrometer-thin carbon filaments bonded together with resin—could also damage recycling machines.

The amendment was proposed under a revision to the EU's End of Life Vehicles Directive, which is the arm of the European government tasked with recycling old cars. If Parliament officially adopts the amendment, it would take effect in Europe beginning in 2029. Companies would gradually have to wind down carbon fiber use in their manufacturing. Auto manufacturing alone accounts for up to 20 percent of all carbon fiber use worldwide. However, on Tuesday, Motor1 Italia reported that carbon fiber has been removed from the original proposal … so there’s still hope for advocates of the material.

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