Will trade tariffs upend your 2025 travel plans? Here’s what you need to know

We’ve been reading about the sweeping tariffs that the US has imposed on trade – including a 10 per cent blanket duty on all US imports, and a 125 per cent tariff on Chinese goods.

Retaliatory measures from China and the EU have followed, fuelling tensions that are already reshaping global trade flows and broader economic conditions.

So what exactly are tariffs, and why should you care? For starters, here’s how they could shape your 2025 travel plans – and what you can do to stay one step ahead.

What do tariffs have to do with travel anyway?

A tariff is a tax placed on imported goods. Governments typically use them to protect local industries or to retaliate against other countries’ trade practices. When tariffs are introduced or raised, the cost of imported goods goes up, and businesses often pass those costs on to consumers.

That may not sound like a travel issue, but here’s the catch: The tourism industry is deeply global. Jet fuel, aircraft parts, hotel food ingredients, even your luggage – they’re part of international supply chains. And if those items become more expensive to import due to tariffs, travellers (yes, including those from Singapore) will eventually feel the squeeze.

With the global economy as interconnected as it is, tariffs imposed by the US or Europe don’t stay “over there” – they ripple across markets and affect currencies, fuel prices and trade relationships. All of this can show up in the form of increased travel costs, fewer route options, or higher hotel bills.

Airlines and hotels are already adjusting

Airlines and hotels are adjusting not through sharp price hikes, but by shifting how they operate. While average airfares have stayed relatively stable over the past three months, carriers are cutting underperforming routes and increasing fees on extras like baggage and seat selection.

Hotels, particularly in the US, are making similar moves – trimming amenities or introducing tiered pricing to manage rising costs from tariff-affected imports like food, fuel and furnishings.

These changes, while subtle, mean travellers may pay more for the same experience without realising it. These realignments don’t necessarily mean your next trip will be dramatically more expensive, but they do suggest that the travel experience may look and feel different.

Perks and access once taken for granted might now carry a fee or quietly disappear. If you’ve noticed your favourite budget airline no longer flying to Osaka, or that once-reliable boutique hotel in Seoul now charges for what used to be free, tariffs could be part of the reason.

Travel companies are recalibrating, and it’s worth paying attention to how these shifts might subtly change what your next trip looks like, and costs.

Currency swings can break (or make) your budget

Trade tensions influence investor behaviour – and that affects exchange rates. In theory, when the US announces sweeping tariffs, it can initially strengthen the dollar as investors interpret it as a move to protect domestic industries.

However, the real-world market reaction to the 2025 tariff wave has defied expectations so far. In May 2025, the US dollar softened instead of rallying, which could be a reflection of mounting investor concern over long-term economic growth, potential inflation from higher import costs, and global retaliation.

This divergence highlights how market sentiment and geopolitical uncertainty can override textbook predictions.

For Singaporean travellers, this means your holiday spending power can swing dramatically depending on the strength of the Singapore dollar (SGD) relative to regional currencies.

Until recently, a strong US dollar made shopping in New York less appealing – but in the past few months, the greenback has begun to weaken modestly, partly in response to global trade instability, rising import costs, and concerns about slowing growth in the US.

The same dynamic applies to destinations like Japan, where a weak yen has made Tokyo dining and shopping significantly more affordable.

At the moment, South Korea, Thailand, Australia and New Zealand also offer more bang for your buck because of weakened currencies, but as trade tensions escalate and currencies shift in reaction, those advantages can evaporate quickly, so it pays to monitor trends closely and lock in favourable rates when you can.

Where smart travellers are going next

As travel to the US becomes more expensive due to tariffs and a softening but still strong dollar, many Singaporean travellers are already pivoting to destinations where their spending power stretches further.

They are not alone: European and Canadian travellers are increasingly choosing to skip US holidays, not just due to prices, but also due to policy fatigue and a cooling of sentiment.

Nearby, popular destinations like Japan and South Korea have become even more attractive to Singaporean travellers, thanks to their weaker currencies offering greater value for everything from shopping to dining and accommodation.

According to Tokyo-based travel company Essential Japan and JTB Corporation, Japan welcomed over 3.25 million foreign visitors in February 2025 alone – a 16.9 per cent increase from the same period the year before – and is projected to surpass 40 million visitors this year.

South Korea, as reported by Gowithguide – an online marketplace that connects travellers with local tour guides – and The Korea Times, expects 18.5 million inbound travellers in 2025, putting it close to its pre-pandemic high.

In South-east Asia, Bloomberg reports that Vietnam is targeting 23 million international arrivals, while travel trade news site Travel And Tour World notes that Thailand has already seen over 11 million visitors by April.

These figures highlight how regional favourites are not only rebounding, but booming. The upshot? Destinations once considered affordable and off-peak are now filling up faster, with prices for hotels and flights already on the rise.

While Asia still offers great value, booking early and considering less-saturated destinations may be key to making the most of your 2025 travel plans.

Think global, spend local

One way to sidestep tariff-induced price hikes? Pick destinations that don’t have strong trade dependencies with the US. And once you’re there, favour local experiences: Feast on regional cuisine, shop from small producers, and avoid imported goods that carry extra costs.

Choosing local not only helps you dodge tariff markups, it also gives you a more authentic, rewarding experience while directly supporting local communities.

Regional travel often means fewer long-haul flights (which are more sensitive to fuel prices) and lower reliance on imported goods.

These destinations tend to offer better currency value and more affordable luxury – an increasingly attractive combination for travellers balancing indulgence with practicality. For example, Da Nang offers beautiful beaches, chic resorts, and excellent cuisine without the wallet sting. Luang Prabang is emerging as a serene alternative to more commercial spots.

And if you’re craving nature, Sabah and Sarawak offer jungle escapes that are both Instagrammable and value-for-money.

Final boarding call

Global trade may seem far removed from your holiday planning – but in 2025, it’s playing a quiet but powerful role behind the scenes.

Tariffs, fuel costs and currency shifts could all influence where you go, how much you spend, and what kind of experience you get. Sure, tariffs are taxing, but a smart traveller knows: The best things in life are still (almost) duty-free.

What might cost more – and what might cost less

Likely to cost more

• Airfares (especially long-haul flights using imported aircraft parts or fuel)
• Hotel dining (if menus rely on imported food and wine)
• US-branded goods and tech devices
• Checked baggage and other flight extras (fuel surcharges, seat selection)
• US destinations

Potentially cheaper or stable

• Travel to tariff-neutral or low-dependency destinations (eg Asean countries)
• Locally sourced products, meals and artisanal shopping
• Export goods in countries that don’t tariff each other (most of the world except US, China, EU and India)
• Japan (thanks to the weak yen, for now)
• Services in regional destinations less exposed to global supply chains (Vietnam, Laos, Cambodia, East Malaysia, second-tier Indonesian destinations like Lombok and Yogyakarta)

Daniel Yap is the former global lead for Binance Academy and HTX Learn. His teams helped guide and educate hundreds and thousands of crypto users on topics ranging from technology to trading.