President Donald Trump’s sweeping new tariffs have rattled global markets and raised alarms across Europe, with ripple effects potentially reaching even Greece’s tourism-reliant economy. While Greece is not a direct target of the trade measures, both government officials and industry leaders are closely monitoring the situation amid fears of a broader economic fallout.
Unveiled on April 2, the U.S. tariff package includes a 10% baseline tariff on all imports beginning April 5, and higher tariffs—effective April 9—targeting countries labeled by the Trump administration as “the worst offenders.” These include 54% on Chinese goods, 49% on Cambodian products, and 46% on Vietnamese imports. Goods from the European Union will be taxed at 20%, while Canada and Mexico are exempt under existing agreements. According to Kathimerini, the value of EU exports affected by the tariffs is estimated at €380 billion, with the tariff burden surpassing €80 billion. In response, the European Commission announced a reciprocal tariff plan that includes retaliatory duties of up to 25% on selected U.S. products, aiming to match the scale and impact of the American measures.
Global stock markets responded swiftly. Wall Street suffered its biggest one-day loss since 2020, with the Dow Jones falling over 1,200 points. European and Asian indices followed suit, sparking concerns over a recession.
Travel Industry in Turmoil
Although travel services are not directly subject to tariffs, the knock-on effects on the global economy and consumer sentiment are already being felt. According to Skift, leading travel and hospitality companies have begun to report changes in traveler behavior.
- Accor CEO Sébastien Bazin noted a 25% drop in European bookings to the U.S. for summer 2025.
- United Airlines cited a “big drop” in Canadian traffic.
- Porter Airlines suspended its U.S.-bound marketing campaigns entirely.
- Ryanair CEO Michael O’Leary called the U.S. policy “full of unintended consequences.”
Tariffs on materials and furnishings are also expected to raise costs for hotel construction and renovation projects—an issue that could extend beyond the U.S. and affect multinational hospitality developments across Europe.
Greece: Minimal Direct Exposure, High Indirect Risk
Greece’s direct trade exposure to the U.S. remains relatively limited, with only 4.5% of Greek exports directed toward the American market, according to Bank of Greece Governor Yannis Stournaras. However, the indirect consequences could prove substantial, especially given Greece’s deep economic ties to the European Union. The European Union is Greece’s largest tourism source market. In 2024 alone, EU travelers generated €11.9 billion of the €21.7 billion in total tourism revenue, according to the Bank of Greece. Any contraction in the EU economy—caused by tariffs, retaliatory measures, or financial uncertainty—could curb travel budgets and reduce inbound tourism to Greece. Tourists from the United States brought in €1.58 billion, reflecting a 15.1% increase.
These figures emphasize Greece’s high exposure to European travel demand: receipts from EU countries in 2024 rose by 7.0%, compared to just 0.8% growth from non-EU markets.
Government Response: Reassurance Amid Uncertainty
Greek Prime Minister Kyriakos Mitsotakis, speaking from Kozani, emphasized Greece’s role as a “firm advocate of free trade,” warning that “this trade war will ultimately benefit no one. It will harm everyone.” He stressed the importance of Greece’s leadership role within the EU in shaping a collective response.
“The Greek economy will be able to cope with these difficult challenges… Political stability and the government’s ability to chart a steady course are essential in these turbulent times,” he said.
Bank of Greece Governor Yiannis Stournaras also highlighted that while the direct impact is expected to be mild, Greece will feel the effects of slowed eurozone growth. However, he remains optimistic about monetary policy, stating that current events are “not an obstacle to further reducing interest rates in April.”
Finance Minister Kyriakos Pierrakakis acknowledged the risk but added: “The effects cannot yet be captured in their entirety, although it is a given that they will be negative.”
Following the Pulse
Amid ongoing global trade tensions and economic volatility, traveler behavior and sentiment may evolve in ways that are difficult to predict. The broader international context—including tariff disputes, market reactions, and geopolitical developments—could influence how, where, and when people choose to travel. In this environment, tourism-dependent destinations such as Greece may find it useful to monitor trends closely and assess the potential implications for upcoming travel seasons.
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