Trump tariffs to impact Indian in US, Canada, UK, China, Australia: Decoded

US President Donald Trump’s steep tariff hike on imports has rattled world markets and triggered threats of retaliation from both allies and rivals. The move, announced on April 2, 2025, has reignited fears of a recession and left students and foreign workers facing fresh uncertainty — especially those planning to study or work in the US, UK, Australia, Canada, New Zealand and China.  

 

“For those planning to study or work abroad, especially in countries like the US, UK, Australia, Canada, New Zealand or China, this could change the economic picture entirely,” said Prashant Ajmera, immigration lawyer at Ajmera Law Group.

 

Import taxes reach century-high levels

 

Fitch Ratings said the effective US import tax rate has climbed to 22% under Trump, up from 2.5% in 2024. It’s a level last seen around 1910.  

 

China, now facing a total 54% tariff on exports to the US, has promised to respond. The European Union has also threatened countermeasures.  

 

“The consequences will be dire for millions of people around the globe,” said EU chief Ursula von der Leyen. French Prime Minister François Bayrou called it “a catastrophe for the United States and for US citizens”.

 

Country-wise tariff breakdown

 

Canada: Temporarily exempt, but 25% tariff on auto imports remains  

UK: Subject to a 10% tariff on imports  

Australia: Faces a 10% tariff on imports  

Germany (EU member): 20% tariff on imports  

New Zealand: 10% tariff on imports  

Russia: Exempted  

China: Total 54% tariff, including 20% fentanyl-related levy  

 

Cost pressure on students and immigrants

 

Ajmera explained that higher tariffs raise prices of everyday goods, which affects not only Americans but also international students and immigrants.  

 

“Students from India, for example, rely on Chinese-made non-food items. Tariffs will push up the cost of these, increasing their living expenses,” he said.  

 

He also warned that if countries retaliate, US companies could respond with layoffs. “Immigrants, H-1B visa holders, and students on OPT could be among the first to be affected,” he said.  

 

Mamta Shekhawat, founder of study abroad platform Gradding.com, said tariffs might not target tuition fees but still raise overall costs.  

 

“As inflation grows in the US, housing, food and other essentials become more expensive. That worsens the rupee-dollar imbalance, making it harder for Indian students to manage education and living costs,” she said.  

 

She pointed out that China remains the top exporter of affordable items often bought by students — including furniture, lamps, toys and bedding.  

 

“Inflation plus trade tensions can also create a less welcoming environment for international students. That means more scrutiny and uncertainty, financially and socially,” she said.  

 

Trade wars may spill over into visas and job markets

 

Shekhawat said trade tensions could also slow visa processes or restrict student exchanges.  

 

“Countries may respond to tariffs by tightening visa rules. If that happens, the US might respond in kind. That could limit hiring of international talent and slow job markets for graduates,” she said.  

 

Some remain optimistic about education abroad

 

However, Saurabh Arora, CEO of student accommodation platform University Living, said interest in studying overseas remains steady.  

 

“Visa policies are still supportive for students who show genuine intent. Universities continue to attract serious students, and they won’t face many hurdles,” he said.  

 

Arora added that downturns often lead more people to pursue higher education. “Fields like STEM, business and healthcare always need skilled people. Well-prepared students will still find jobs,” he said.  

 

Abhijit Zaveri, founder of Career Mosaic, said Indian students are showing resilience.  

 

“Over 331,600 Indian students enrolled in the US for the 2023-24 academic year, making up nearly 30% of the international student population,” he said, citing the Open Doors report.  

 

“Students who plan carefully, find scholarships or part-time jobs can manage the financial strain,” he said.