Upon entering the Gulf of Mexico, Carmen turned northward and re-intensified as it approached the United States. Initially threatening the major city of New Orleans, it veered westward and made landfall on the marshland of southern Louisiana, eventually dissipating over eastern Texas on September 10. Tropical cyclone watches and warnings had been issued for the storm, and approximately 100,000 residents left their homes and sought shelter. Damage was lighter than first feared, but the sugar industry suffered substantial losses. Throughout its course, the hurricane killed 8 people and caused $162 million in damage. Due to the severity of the storm, the name "Carmen" was retired from the list of Atlantic tropical cyclone names.