India’s leading trade body yesterday said it was concerned by a new annual US$100,000 fee that US President Donald Trump ordered for H-1B skilled worker visas, an addition that could have major repercussions for the tech industry, where such permits are widespread.
The new measure, which would likely face legal challenges, was announced yesterday alongside the introduction of a US$1 million “gold card” residency program that Trump had previewed months earlier.
“The main thing is, we’re going to have great people coming in, and they’re going to be paying,” Trump told reporters as he signed the orders in the Oval Office.
Photo: AP
H-1B visas allow companies to sponsor foreign workers with specialized skills — such as scientists, engineers and computer programmers — to work in the US, initially for three years, but extendable to six.
The US awards 85,000 H-1B visas per year on a lottery system, with India accounting for about three-quarters of the recipients.
India’s top trade body Nasscom said that technology companies would be hit, because “business continuity will be disrupted for onshore projects.”
It was also concerned by the short timeline, with the new fees under Trump’s order coming into effect today.
“A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world,” Nasscom said. “Policy changes of this scale are best introduced with adequate transition periods, allowing organizations and individuals to plan effectively and minimize disruption.”
Large technology firms rely on Indian workers who either relocate to the US or come and go between the two countries.
Tech entrepreneurs have warned against targeting H-1B visas, saying that the US does not have enough homegrown talent to fill important tech sector job vacancies.
However, US Secretary of Commerce Howard Lutnick said: “All the big companies are on board.”
The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under then-US president Joe Biden.
In contrast, the peak in rejections was recorded in 2018, during Trump’s first term.
The US approved about 400,000 H-1B visas last year, two-thirds of which were renewals.
Trump on Friday also signed an order creating a new expedited pathway to US residency for people who pay US$1 million, or for corporate sponsors to pay US$2 million.
Meanwhile South Korea’s Ministry of Foreign Affairs yesterday said officials would “comprehensively assess the impact of these measures on the advancement of [South Korean] companies and professional talents into the US market and engage in necessary communication with the US.”
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