Tariffs Threaten to Derail Hotel Industry’s Fragile Recovery, Expert Warns.

As the global hospitality industry works to regain its footing after the pandemic, new challenges are looming on the horizon. On April 9, President Trump announced a 90-day pause on sweeping tariffs, momentarily easing tensions—but for many in the hotel sector, the mere prospect of a renewed trade war is already cause for alarm.

Richie Karaburun, a clinical associate professor at NYU’s Tisch Center of Hospitality, didn’t mince words: tariffs, he said, could make hoteliers’ lives “miserable.”

Why? Because for an industry that relies so heavily on globally sourced goods—from towels and linens to breakfast buffet supplies—the impact of tariffs on imports could be catastrophic. Many of these essentials come from countries like Vietnam, Cambodia, and Indonesia, which have faced tariffs of up to 49%. These nations became manufacturing hubs after earlier U.S.-China trade tensions redirected supply chains, but now they, too, are in the crosshairs.

According to Karaburun, this spells trouble not only for daily operations but also for future development. Rising costs for furniture, fixtures, and equipment—which can account for 15% to 20% of a hotel construction budget—could push project costs up by 5% to 10%. That’s a significant burden for an industry already grappling with labor shortages, shifting travel patterns, and economic uncertainty.

While large hotel chains might have the leverage to negotiate with suppliers or absorb some costs, the strain could result in slimmer profit margins, staff cuts, or higher prices for consumers. In a worst-case scenario, travelers—especially budget-conscious ones—might cut back on travel or opt for more affordable accommodations.

Karaburun remains cautiously optimistic, hoping that negotiations during the 90-day pause will lead to the removal of at least some tariffs. But he also warns of the dangers of a prolonged trade war: “It would be a race to the bottom,” he said, “where no one wins.”

As the industry waits to see how the situation unfolds, one thing is clear: the recovery of the hospitality sector is still a delicate balancing act, and policy decisions like tariffs could tip the scale.

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