Why Trump is right in saying foreign students are good business for the US

Each year, they contribute billions of dollars to the country's economy and create jobs in various sectors

President Donald Trump said earlier this month that foreigners studying in the United States (US) are “good business” and a crackdown would be “financially destructive” for its universities.

 

It is indeed good business. Education-related travel to the US comprised almost 5 per cent of all service exports from the country in 2024. The share of education-related travel to the US by India and China — the two countries send the most students to the US annually — in their total service imports from the US was 33.57 per cent and 26.51 per cent in 2024.

 

India and China’s share in all education-related travel exports from the US (worth almost $55 billion in 2024) has vastly increased since the start of the century. India’s share was 8.55 per cent and China’s 10.3 per cent of such US exports in 2000.

 

India took the lead thereafter until 2009 but China’s share grew larger in 2010, reaching a peak of 37.2 per cent in 2019 and then narrowing to 26.6 per cent last year. India’s share increased to 19.53 per cent in 2022 and 25.55 per cent in 2024. 

 

NAFSA: Association of International Educators, a Washington-based non-profit for international education and exchange, says that for every three international students, one job is created or supported in the US. Accommodation, dining and retail are among sectors, besides higher education, that have benefitted due to foreign students.

 

In the academic year 2024-25, international students contributed $42.9 billion to the US economy and created around 356,000 jobs, less by almost $1 billion and 23,000 jobs compared to 2023-24. 

 

Chinese students contributed nearly $14.6 billion in 2024, up from $12.27 billion in 2022. Indian students’ contribution more than doubled from $7.14 billion in 2022 to $14 billion in 2024, marginally behind China. 

 

Despite Trump’s recent remarks, his administration earlier this year took action against international students: Thousands of visas were revoked, pro-Palestinian activists faced arrest or deportation, and tougher screening measures, including mandatory social media profile checks, were imposed.

 

Business might not remain good for too long if such policies continue.