Trump’s H-1B visa fee hike: Which countries could benefit?

President Donald Trump’s determination to hike the exertion interest for companies successful the United States hiring overseas workers connected H-1B visas is apt to propulsion galore overseas skilled workers to question jobs successful different countries instead.

The steep cost emergence to $100,000 per exertion is designed to promote US companies to favour US workers implicit foreign skilled workers. But it comes arsenic a stroke to large exertion companies successful particular, arsenic they trust heavy connected skilled workers from overseas.

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The H-1B visa was introduced successful 1990 nether President George HW Bush. Today, Indian tech workers represent the bulk of H-1B visa recipients – past year, they received 71 percent of approved H-1B visas, followed by Chinese nationals successful 2nd spot with 11.7 percent.

Trump’s determination could pb to weaker economical maturation successful the US, experts person warned, since higher costs for employers volition marque it harder to clasp overseas talent. It could besides pb to a near-term “brain drain”, arsenic skilled assemblage graduates are forced to permission the US successful favour of different countries.

What has the Trump medication announced successful narration to H-1B visas?

In a decree signed by Trump connected September 19, his medication announced that from 12:01am ET (04:01 GMT) connected September 21, US companies indispensable wage $100,000 per H-1B application.

The fees antecedently ranged from $2,000 to $5,000, depending connected the size of the institution applying for the visa. The H-1B visa, initially granted for up to 3 years, enables US companies to prosecute overseas workers with specialised skills. It tin beryllium extended up to six years, but the exertion interest indispensable beryllium paid again erstwhile extending the visa.

The H-1B programme facilitates 65,000 visas annually for employers bringing successful impermanent overseas workers successful specialised fields, arsenic good arsenic a further 20,000 visas for workers with precocious degrees, peculiarly successful STEM (science, technology, engineering and mathematics) industries.

“The interest is simply a one-time interest connected submission of a caller H-1B petition,” the White House said connected Sunday. It added that the rules volition not use to radical who already clasp H-1B visas oregon those who submitted their applications earlier September 21.

The Department of Homeland Security volition besides present prioritise high-skilled, high-paid applicants successful the H-1B lottery implicit those earning less. Other changes to the H-1B visa are besides nether consideration, the Trump medication said.

Critics person agelong argued that H-1B is misused by companies bringing successful workers astatine wages little than those they would person to wage US employees, thereby forfeiting jobs that would different person gone to Americans.

The Indian authorities said connected Saturday that it is examining the “full implications” of the caller rules. India’s Ministry of External Affairs besides stated: “This measurement is apt to person humanitarian consequences by mode of the disruption caused for families.”

Which industries are astir affected?

Roughly two-thirds of existing H-1B jobs are successful tech-related roles. According to the US Citizenship and Immigration Services, Amazon, Google, Meta, Microsoft, and Apple were among the companies which employed the astir H-1B visa holders past year.

Trump’s caller interest has sent shockwaves done the tech manufacture arsenic a result. Microsoft, for instance, told employees that existent holders of the visa should enactment successful the US “for the foreseeable future”.

Numerous tech manufacture leaders, including Alphabet main enforcement Sundar Pichai, Microsoft CEO Satya Nadella and Tesla and SpaceX caput Elon Musk, were astatine 1 constituent H-1B visa holders.

In 2024, Musk wrote connected his X platform: “The crushed I’m successful America on with truthful galore captious radical who built SpaceX, Tesla and hundreds of different companies that made America beardown is due to the fact that of H-1B.”

How mightiness different countries payment from this?

Many countries are looking to enactment up expertise successful exertion and STEM-related industries, and whitethorn beryllium waiting to pounce connected overseas specialists who tin nary longer instrumentality up jobs successful the US due to the fact that of the emergence successful outgo of the H1-B visa.

United Kingdom

In effect to the hike successful terms for H-1B visas, British Prime Minister Keir Starmer is thought to beryllium exploring proposals to abolish visa fees for skilled overseas workers, the Financial Times reported connected Monday, citing radical briefed connected the discussions wrong the Treasury department.

Starmer’s “global endowment task force” is moving connected ideas to lure apical planetary scientists to the UK, including academics and integer experts, arsenic it seeks to stimulate economical growth. One enactment being considered is abolishing each visa charges for top-level professionals.

China

Beijing volition motorboat the caller K Visa, which is aimed astatine attracting skilled workers successful STEM, connected October 1.

The K Visa volition let palmy applicants to survey and enactment successful China without having archetypal received a occupation connection oregon probe position.

China’s Ministry of Foreign Affairs declined to remark connected the US changes implicit the weekend, but said the state “welcomes” top-tier endowment from each implicit the world.

South Korea

On Monday, the statesmanlike main of staff, Kang Hoon-sik, said helium had instructed ministries to find ways to exploit the US visa changes to pull scientists and engineers from overseas to South Korea instead.

Kang did not springiness further details connected what steps mightiness beryllium taken, but said the authorities plans to absorption adjacent year’s fund connected initiatives astir artificial quality (AI) and different areas designed to beforehand a technology-led economy.

Canada

On September 15, Canada lowered the cut-off people for its Comprehensive Ranking System, which regulates applications for imperishable residence from skilled workers, allowing much candidates to beryllium invited.

Canada could besides see reintroducing a 2023 visa programme which allowed those already connected H-1B visas to migrate to Canada nether much favourable presumption for up to 3 years. The strategy closed successful July this year, aft the authorities headdress of 10,000 applicants was reached.