Policy Impact on the U.S. Trade Surplus in Educational Services

Abstract

Educational services generated $43.8 billion through international student enrollment in 2023-2024, making it one of America's top export sectors. Although tariff policies targeting manufactured goods did not directly impact educational services, the unintended effects of immigration restrictions, visa processing delays, the proposed $100,000 H-1B visa fee, and cuts to federal research funding threaten this trade advantage.

In the 1990s, the European Union and NAFTA created multilateral trade opportunities. The U.S. exported and imported a wide range of goods, but their main advantage was in services like accounting, banking, consulting, education, and legal services. Most imports consisted of clothing, electronics, and food. Despite inefficiencies and selective barriers to trade and foreign countries, globalization of production and markets became a reality.

This paper explains how policies designed to bolster manufacturing unintentionally weaken one of America's most successful exports while offshoring innovation capacity.