logo
Student arrivals to US continue to plummet, led by Asia decline

Student arrivals to US continue to plummet, led by Asia decline

Business Times2 days ago
[WASHINGTON] Visitors to the US arriving on student visas plunged in July, falling year on year for a fourth straight month.
The declines were most pronounced from Asia, the largest international education market, as the Trump administration's immigration policies created bottlenecks and a chilling effect on prospective students.
Total arrivals on student visas decreased 28 per cent to just under 79,000, the biggest monthly drop so far this year, data from the International Trade Administration show. Student arrivals from India plummeted 46 per cent while China posted a 26 per cent decline. The twin drops from the two largest sources of foreign students provides a grim snapshot that threatens to disrupt the financial models of US colleges and universities.
US universities have already warned that first-time foreign student enrolment on campuses are projected to fall by about 30 per cent this fall, potentially costing the education sector US$2.6 billion in tuition revenue. The sharp downturn follows a series of policy changes and administrative hurdles from the White House around tightening immigration and foreign student scrutiny.
The measures have created a climate of uncertainty and resulted in significant backlogs and delays at US embassies and consulates in key Asian markets.
'There are real reasons for concern,' said Zuzana Cepla Wootson, deputy director of federal policy at the Presidents' Alliance on Higher Education and Immigration, whose members are university leaders. 'It's part of a broader pattern under this administration. The travel ban, expanded screening processes, appointment backlogs – all these create uncertainty for students from China, India and beyond.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The Trump administration announced a pause in interviews for student visas in late May. In mid June, the State Department said it would resume interviews, while also ordering reviews of applicants' social-media profiles. The timing of these policies, during the peak summer visa application season, has been particularly damaging and doesn't bode well for student arrivals in August, which historically is the peak month for new students entering the US.
The visitor arrival figures do not break down whether those coming in are new or returning students. Many already on student visas may have chosen to stay in the US and not travel this summer due to the administration's scrutiny of international scholars, Wootson said.
Officials at schools with large Asian student populations, such as the University of Southern California (USC), have said that that a continued decline could result in tens of millions of US dollars in lost revenue. USC already faces a deficit of US$200 million. Arizona State University President Michael Crow meanwhile said visa delays have been more disruptive than the pandemic.
A record 1.1 million international students enrolled in US higher education institutions in the 2023-2024 school year, according to Open Doors, which collects data on foreign scholars. India was the top country, with nearly 332,000 students, followed by China with about 277,000 that academic year. BLOOMBERG
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Boeing in talks to sell as many as 500 planes to China: sources
Boeing in talks to sell as many as 500 planes to China: sources

Business Times

timean hour ago

  • Business Times

Boeing in talks to sell as many as 500 planes to China: sources

[BEIJING] Boeing is heading closer towards finalising a deal with China to sell as many as 500 aircraft, according to people familiar with the matter, a transaction that would end a sales drought that stretches back to US President Donald Trump's last visit in 2017. The two sides are still hammering out terms of the complex aircraft sale, including the types and volume of jet models and delivery timetables, according to one of the people, who asked not to be identified discussing confidential matters. The mega sale to China, years in the making, is contingent on the two nations diffusing the trade hostilities that hark back to Trump's first term in office – and could still fall apart, they said. Chinese officials have already started consulting domestic airlines about how many Boeing aircraft they will need, the people said. The transaction taking shape is similar in scope to the order for as many as 500 jets that China's central planners have struck with Airbus, but have not yet announced, they added. The Boeing order is expected to be the centrepiece of a trade agreement that would benefit both Trump and China's President Xi Jinping, the culmination of long-running and sometimes contentious negotiations. The nation's leaders were close to a similar announcement in 2023, but then-President Joe Biden and Xi left a San Francisco summit without consummating an aircraft sale. Complicating matters for Boeing is a leadership void in China. Alvin Liu, its top executive in China and a fluent Mandarin-speaker with extensive government contacts, left the company in recent weeks. Carol Shen has been named interim president of Boeing China, said people familiar with the matter. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Boeing declined to comment on any potential deal or management changes. Aircraft orders for Boeing have figured large in US diplomacy since Trump returned to the White House in January, with nations touting new, tentative and existing deals for airplanes, which are as expensive as skyscrapers, to narrow trade imbalances with the US. The US and China have engaged in several rounds of talks since de-escalating tit-for-tat tariffs that soared to as high as 145 per cent, but have yet to reach a final trade deal. Earlier in the summer, Xi, in a phone call, invited Trump to China at an unspecified date. One opportunity for the pair to meet is in late October, ahead of the Asia-Pacific Economic Cooperation summit in South Korea. For China, the deal would secure aircraft delivery slots that are hard to come by at both Boeing and Airbus, which are largely sold out into the 2030s. The world's second largest's aviation market is expected to more than double its commercial fleet to 9,755 airplanes over the next 20 years, by Boeing's estimation, far more than China's homegrown planemaker Comac could manufacture. The country's top economic planning agency, the National Development and Reform Commission, recently sought input from Chinese carriers about how many jets they want, one of the people said. Talks centreed on the 737 Max series of aircraft, Boeing's popular single-aisle jet, in a sign Beijing is laying the groundwork for a major order. Boeing's last Chinese deal was unveiled in November 2017 during Trump's first state visit to China. The deal amounted to orders and commitments for 300 single-aisle and twin-aisle planes valued at US$37 billion at the time. The next year, Boeing's China deliveries peaked, when a quarter of its jets ended up in the mainland. Airbus has dominated sales and deliveries to China since 2019, when the nation's regulators were the first to ground the 737 Max after two fatal accidents. Boeing has notched only 30 orders with Chinese carriers and leasing companies since the start of 2019, according to the company's website. In an interview with Bloomberg in January, chief executive officer Kelly Ortberg was optimistic that years of talks with Beijing would finally pay off. 'We certainly hope that there's an opportunity for some additional orders in the next year with China,' he said. BLOOMBERG

EU, US reach agreement on joint statement outlining trade deal
EU, US reach agreement on joint statement outlining trade deal

Business Times

timean hour ago

  • Business Times

EU, US reach agreement on joint statement outlining trade deal

[WASHINGTON] The US and European Union took the next steps to formalise their trade pact, detailing plans that could reduce tariffs on European automobiles within weeks while opening the door to new potential discounts for steel and aluminium. The joint statement issued on Thursday (Aug 21) represents an advancement of the preliminary deal announced a month ago, including specific benchmarks for the EU to secure its promised sectoral tariff discounts on cars, pharmaceuticals and semiconductors, as well as new commitments for addressing the bloc's digital services regulations. US President Donald Trump has repeatedly praised the sweeping US-EU trade framework, extolling it as 'a big deal' in a Monday White House meeting with foreign leaders including European Commission President Ursula von der Leyen. The development underscores the nature of trade talks under Trump, with some initial, broad pronouncements of deals giving way to weeks – or more – of work to hammer out detailed agreements. Many of them are also tied to sweeping policy changes that could take time to materialise. For example, Trump already imposed a flat 15 per cent rate on most European goods – half the 30 per cent he'd previously threatened. But the US promise to extend that lower levy to autos and auto parts now hinges on the EU formally introducing a legislative proposal to eliminate a host of its own tariffs on US industrial goods and provide 'preferential market access' for some US seafood and agricultural products. Car relief The statement outlines choreographed action on both sides of the Atlantic, with the US codifying reduced auto tariffs once the EU 'formally introduces the necessary legislative proposal to enact' its own promised tariff reductions. The discounted 15 per cent tariffs on European auto imports – lower than a 27.5 per cent Trump previously imposed on them – would be effective from the start of the same month that legislation is advanced. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up They could be in place within weeks, said a senior Trump administration official who briefed reporters on the initiative. The shift has been anxiously anticipated by some EU member states, particularly Germany, which exported US$34.9 billion of new cars and auto parts to the US in 2024. The legislative trigger is designed to help ensure the EU delivers on its promised tariff reductions – and ensure the 27-nation bloc has sufficient pressure to obtain the political mandate needed to make the changes, the administration official said. The US is committing to apply lower most-favoured-nation tariffs to a slew of other European products – including aircraft and aircraft parts, generic pharmaceuticals and their ingredients and some natural resources such as cork. The US is also renewing its commitment to cap sectoral tariffs on European pharmaceutical products, semiconductors and lumber at 15 per cent. Metals quotas It's also opening the prospect for discounted rates on some steel, aluminium and derivative products under a quota system. That's a shift from the White House's stated plans in July, when the Trump administration insisted those metal tariffs would remain at 50 per cent, helping to lower trade deficits with the EU and bring revenue to US coffers. On steel and aluminium , the EU and US now assert they 'intend to consider the possibility to cooperate on ring-fencing their respective domestic markets from overcapacity, while ensuring secure supply chains between each other,' according to the joint statement. The document raises major questions about how the EU might fulfill its promise to invest US$600 billion in the US or purchase some US$750 billion in US energy resources – including liquefied natural gas, oil and nuclear power products – through 2028. Private sector investments by European companies would be expected across strategic sectors in the US, including pharmaceuticals, semiconductors and advanced manufacturing, the senior administration official said. Meanwhile, the EU plans to substantially increase procurement of military and defence equipment from the US, according to the statement, and intends to buy at least US$40 billion worth of US artificial intelligence chips. According to the joint statement, the EU intends to provide preferential market access for seafood and non-sensitive agricultural goods imported from the US, including tree nuts, certain dairy products, fresh and processed fruits and vegetables, processed foods, planting seeds, soybean oil, and pork and bison meat. Digital trade In recent weeks, deliberations over the EU's digital services regulations and potential relief for some goods – including wine and spirits – were seen prolonging talks. The EU did not secure lower rates for alcohol in the joint statement. But the US and EU are pledging to address some of what the statement calls 'unjustified digital trade barriers,' with the bloc confirming that it will 'not adopt or maintain network usage fees.' The EU has committed to work towards providing more 'flexibilities' in its levy on carbon-intensive imports set to kick in next year, the statement said, and it will seek to ensure its corporate sustainability due diligence and reporting requirements don't pose 'undue restrictions on transatlantic trade.' Potential changes could include eased compliance requirements for small- and medium-sized businesses, according to the statement. BLOOMBERG

Kill Bill sneakers turn Japan soft power into hard profits
Kill Bill sneakers turn Japan soft power into hard profits

Business Times

timean hour ago

  • Business Times

Kill Bill sneakers turn Japan soft power into hard profits

THE unlikely must-have item for tourists in Japan is the footwear of choice of Kill Bill's protagonist. Onitsuka Tiger, the fashion brand reborn when Uma Thurman's The Bride wore its sneakers in Quentin Tarantino's 2003 movie, is enjoying record sales. Asics discontinued the brand for decades until the early 2000s, but post-Covid visitors can't get enough of the comfy, timeless trainers. Revenue in Japan has doubled in a year, with tourists accounting for almost all the surge. Onitsuka is by far Asics's highest-margin segment, with a new flagship store on the Champs-Elysees in Paris and plans for shops in the US. Shares are up eightfold in the past five years, helping its market capitalisation to recently pass US$20 billion. It is also more evidence that visitors to Japan are a growth driver. Complaints about overtourism get the headlines; online grumbles surround the 'shadow economy' of Asian travellers, said to extract more than they spend. But the evidence is there for all to see in the 8.1 trillion yen (S$70.7 billion) of foreign spending last year – and increasingly in profits at firms like Asics. It's far from alone. The focus of the most recent earnings season might have been the impact of US tariffs, but a more interesting narrative is a surge in authentically Japanese brands reaching tourists or expanding abroad. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The weak yen is, of course, a factor. But more important is the strategy of creating fans of the country, who connect with a part of the culture and want to spend on it at home. And from Muji to Mario and Hello Kitty to Uniqlo, these firms are having record quarters, helping propel the Nikkei 225 to a series of record highs. Consider Kitty's maker, Sanrio. While it still generates its largest chunk of revenue domestically, tourists now account for around 40 per cent of its product sales here (the data is trackable thanks to Japan's sales-tax exemption scheme). Shares are up more than 10 times from the 2019 level. Or Food & Life, the owner of conveyor-belt sushi leader Sushiro. Its restaurants in Tokyo and other city centres are thronged with travellers, and it has been expanding abroad. The company aims to have 320 stores overseas by fiscal 2026, from just 38 stores five years ago. The first Sushiro in mainland China opened last year, with reports of customers queuing for 10 hours for some chutoro. Ryohin Keikaku, meanwhile, now has more Muji locations outside Japan than at home, selling minimalist notebooks and no-brand cosmetics. Without simplifying Japan into ikigai and other reductive nonsense, these firms do have a common link. It's some combination of affordability, high quality and an aesthetic minimalism that taps into feelings consumers have long associated with 'Japan-ness.' (The same can be said about foreign brands that try to ape this look, such as the Chinese retailer Miniso). Companies that can take this and tap into newfound customers at home or overseas have significant upside, as the country seeks to attract 60 million tourists spending an annual US$100 billion by the end of the decade. The exemplar of this transformation is Fast Retailing, the operator of Uniqlo. It was once the poster child for how a deflation-beset country was turning to cheap fast fashion. 'Basic chic from Japan. But will it sell?' asked a New York Times headline in 2006, when Uniqlo opened its flagship outlet in the city; back in those days, 90 per cent of sales were in its home market. Since then, it has transformed itself into a minimalist yet iconic fashion brand, and overseas turnover overtook domestic in 2022. Of course, not every successful company needs to be minimalist. At the other end of the spectrum is retailer Pan Pacific International. Its Don Quijote stores are an assault on the senses, but it is a brand that tourists associate with the country – and in turn can generate higher margins than most discount retailers. It is expanding in Japan with even more shops to cater to visitors, with plans to more than double those sales to US$2.7 billion by 2035. That is before we even get into more iconic names such as Nintendo and the gaming and comic giants that benefit from the recent infatuation with Japan's soft power. If a traveller carries an Onitsuka Tiger bag, odds are the other hand holds one from Nintendo, Capcom or Sega Sammy's merchandise stores. More brands can tap into this, too: A recent collaboration between Sega's Sonic the Hedgehog and VF's Timberland shoes sold out in minutes. Souvenirs of a trip can be quickly discarded. But these brands are positioned to better stand the test of time – and turn Japan's soft power into hard profits. BLOOMBERG

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store