“These are very uncertain times, and none of us knows what will happen. If we start seeing trade deals, things will calm down, but obviously, that is a big unknown,” stated Julia Simpson, the Chief Executive of the WTTC, during a virtual press conference regarding the release of the Economic Impact Report (EIR), prepared in cooperation with Oxford Economics.
The study concluded that travelers are expected to spend a record 1.9 trillion euros.
It is also anticipated that the sector will contribute 10.6 trillion euros to the global economy and generate 14 million jobs.
Last week, Donald Trump announced the imposition of a global base tariff of 10% on all countries he considers to be creating trade barriers for U.S. products, adding an additional tariff for those he deems the “worst offenders.”
A 20% tariff will be applied to all imports originating from the European Union (EU).
The EU today approved, by majority, the application of 25% tariffs on American products in response to the tariffs imposed by the U.S.
China also announced an additional retaliatory tariff of 50% on imports from the United States, raising it to 84%, intensifying the trade war between the two largest economies in the world.
The Trump administration had previously imposed a “reciprocal” tariff of 34% on China, which was later increased by 50%. The new taxes were added to the previously announced 20% rates as a penalty for fentanyl trafficking.
