Tariff War 2025: How it’s increasing your study abroad costs (And what can you do about it)
Stressed About the Tariff War Messing With Your Study Abroad Plans? Prodigy Finance’s Got Your Back!
Studying abroad has always been expensive. But in 2025, it’s hitting a whole new level. Flights, tuition, food, even notebooks — everything’s seeing a price hike due to the ongoing global financial tension and global tariff war. From hidden fees to currency shifts, the economic game of tit-for-tat tariffs between countries is quietly hiking up the cost of your dream degree.
The global tariff wars and economic volatility are intensifying these costs, making it even more challenging for students. Let's delve into how these factors are impacting international education expenses and explore practical steps you can take to navigate this landscape.
So, what’s this tariff war all about?
Think of tariffs like taxes on imports and exports. Global tariff wars involve countries imposing taxes on imports and exports, leading to increased prices for goods and services. While these measures are often aimed at protecting domestic industries, they have far-reaching consequences, including on international education.
Key areas affected:
Airfare and travel costs: Tariffs on aviation fuel and restrictions on airline partnerships have led to higher flight prices.
Living expenses: Imported goods such as food, personal care products, and household items have become more expensive due to increased tariffs.
Tuition fees: Universities are adjusting their pricing structures to account for economic instability and increased operational costs.
Educational materials: The cost of laptops, lab equipment, and other study essentials has risen as a result of higher import duties.
Currency volatility: Tariff wars contribute to fluctuations in currency values, affecting the amount students need to pay in local currencies.
"I Thought This Was Just for Businesses?"
This is not wrong. Tariff wars hit businesses first — manufacturers, exporters, and retailers.
But students? They’re the indirect victims. When a company pays more for importing goods or shipping products due to tariffs, those extra costs don’t magically disappear. They get passed on… right to the consumer. Or in this case, the international student.
Think about it, universities are businesses too. Higher operational costs trickle down as higher tuition or facility fees.
Real-Life Example: Priya's Experience
Priya, an aspiring engineer from India, planned to pursue her Master's in Germany. In 2024, she estimated her total expenses at ₹18.5 lakhs. By early 2025, this figure had increased to ₹22 lakhs.
What changed?
An increase of ₹12,000 in laptop costs due to import duties.
Higher university lab usage fees are stemming from increased equipment sourcing costs.
An 8–10% spike in grocery bills due to tariffs on agricultural imports.
A rise in health insurance premiums, reflecting broader economic uncertainties.
Are all countries equally affected?
Not all countries are affected by the changing tariffs, but countries that depend on global trade (like China, the US, Germany, and India) tend to be the most affected, and so are their citizens.
Also, some countries have bilateral trade agreements that shield certain categories (like education or health services), while others don’t. For example, Japan and Canada have safeguarded tech imports for students, but the US and UK have seen spikes in laptop and tablet pricing due to new tariffs.
Strategies to manage rising costs
While you can't control global economic policies, you can take proactive steps to mitigate their impact:
1. Monitor exchange rates: Regularly track currency fluctuations using tools like Xe Currency App or Wise. Plan significant payments when rates are favourable.
2. Consider early tuition payments: If possible, pay tuition fees in advance to lock in current rates and avoid future increases.
3. Purchase essentials before departure: Buying items like electronics and winterwear in your home country may be more cost-effective, even after accounting for baggage fees.
4. Consider secondary destinations: Countries such as Poland, Portugal, Ireland, or the UAE may offer quality education with more stable cost structures.
5. Seek scholarships and financial aid: Utilise platforms like ScholarshipPortal, DAAD, FastWeb, and EduPass to find financial assistance opportunities.
Financial Support: Prodigy Finance
In times of economic uncertainty, securing financial support can be challenging. Prodigy Finance is here to make this journey smoother, offering tailored solutions to help you keep your study abroad dreams alive — even when the world economy is shifting beneath your feet.
✔ No collateral, flexible loan options
Unlike many traditional loans, Prodigy Finance doesn’t require collateral. You can also choose from loans with or without a co-signer, depending on what suits your situation best. This flexibility means you can move forward with your plans without needing to rely on a third party or put up assets.
✔ Tailored for international students
Prodigy Finance specialises in funding international students, which means they understand the unique challenges you face. Whether you're heading to the US, the UK, or beyond, they tailor their loan offerings to fit your specific needs, with competitive rates designed to make studying abroad more accessible.
✔ Fast disbursements, smart repayment plans
Prodigy’s approval and disbursement process is designed to keep pace with international university timelines, ensuring that your funds arrive when you need them most. Plus, their flexible repayment plans often don’t start until after you graduate, giving you the time you need to settle into your new life, find a job, and manage your initial living expenses without the stress of immediate repayments.
✔ Covering the “Inflation Gap”
It’s likely that your carefully planned budget for studying abroad has been impacted by the rising costs due to inflation. If your savings or family funds no longer stretch as far, Prodigy Finance loans can help fill the financial gap. You don’t need to give up on your dream of studying abroad just because the economic landscape has changed.
The bottom line? You can’t control global tariff wars, but you can control how you respond. Prodigy Finance offers a solution to turn the chaos of rising costs into calm financial support — keeping your study abroad plans on track, no matter the economic climate.
Final thoughts
The current global economic climate presents additional challenges for students aspiring to study abroad. By staying informed and proactive, you can navigate these complexities and continue to pursue your educational goals. Remember, while the journey may be more demanding, the rewards of international education remain significant.
FAQs
1. How are Indian students affected by the 2025 tariff war?
2. Are students heading to the US and UK more impacted than those choosing other countries?
3. What can students from African countries do to manage these increasing costs?
4. How are students in Latin America affected by global study inflation?
5. Can students from Southeast Asia still afford to study in countries like Australia and Canada in 2025?
