Trump bites

New applicants only: The White House clarified that the fee applies per petition for new visas, not to existing H-1B holders who are renewing or re-entering the country.

Tech-heavy employers: U.S. and global firms that depend on high-skilled foreign talent—especially in information technology, engineering, and biotech—will shoulder the additional cost.

Industry veterans warn the new fee could add millions of dollars in annual expenses, pressuring profit margins for companies such as Infosys, TCS, and Wipro.

Analysts predict an accelerated shift toward hiring locally in the U.S., automation, and near-shore delivery centers in Canada and Mexico to avoid the surcharge.

The National Association of Software and Service Companies (NASSCOM) called the move “a disruptive blow that threatens competitiveness and family stability for thousands of Indian professionals.”

Indian equity markets opened lower on Monday, with IT indices falling more than 3% as investors priced in higher labor costs.

Economists expect ripple effects on U.S. companies that outsource to Indian providers, potentially raising project costs and squeezing small and mid-sized U.S. tech firms.

Some legal scholars foresee court challenges, questioning whether such a high fee constitutes a barrier to trade under WTO rules.

In signing the order, President Trump said the fee would “ensure that companies invest in U.S. talent before seeking foreign labor.”

The move comes as the White House also negotiates a high-profile agreement over TikTok’s U.S. operations and amid ongoing U.S.–China economic tensions.

Compliance questions: Immigration lawyers are racing to clarify whether the fee could be challenged or adjusted through Congress.

Talent strategies: Global IT service providers are revising project bids, while some U.S. start-ups that rely on H-1B talent warn of hiring freezes.

Diplomatic concerns: India’s government has requested urgent bilateral talks, saying the fee “risks disrupting families and long-standing economic ties.”