Trump is in trouble by increasing the H-1B visa fee. Why is this decision taking a toll on America as well?

News Topical, Digital Desk : US President Donald Trump this week abruptly announced a $100,000 fee for H-1B visas, which are crucial for foreign professionals working in the US, especially for technology companies.

This decision caused panic among migrant workers. Many Silicon Valley companies advised their employees not to travel outside the United States, fearing they would face difficulties returning. As the situation worsened, the White House clarified that the fee would only apply to new visa applications and only once.

America will be heavily affected

Experts say this decision could hurt the US economy. Tech companies rely heavily on H-1B visas for engineers, scientists, and IT specialists. Economist Atakan Bakiskan says it will make it difficult to attract foreign talent and impact productivity.

According to their report, US growth was originally projected at 2% but has now been revised down to 1.5%. Kathleen Brooks, research director at brokerage firm XTB, said that companies like Amazon, Microsoft, Google, and Apple employ a large number of H-1B visa workers. The tech sector can afford the costs, but sectors like healthcare and education will face difficulties.

Most Indians have received H-1B visas

Indians are the leading beneficiaries of the H-1B visa program, with approximately 70% of visas awarded to Indians. This is why companies like Google, Microsoft, and IBM have Indian-origin CEOs. Not just in tech, but approximately 6% of American doctors are also of Indian origin. Therefore, this decision will directly impact professionals from India.

Pressure will increase on America

Experts believe that while India will initially be hard hit, the real pressure will be on US companies. NASSCOM has warned that this could stall many projects and lead to clients imposing new conditions. Indian IT companies such as TCS and Infosys are already expanding their local workforce in the US and shifting significant portions of their work to India or other countries.

According to Aditya Narayan Mishra, HR, CIEL, companies may now rely more on remote contracting, offshore delivery and gig workers to avoid the hefty visa costs.

Read More: China has found a solution to the H-1B visa, introducing a new 'K Visa'; what is the Dragon's plan?