U.S. technology shares fell Monday after President Donald Trump unveiled a dramatic new policy requiring companies to pay US$100,000 annually for each H-1B visa — a key channel for bringing skilled foreign workers to the United States. The move, part of Trump’s broader immigration crackdown, sparked immediate concern over higher labour costs and reduced access to global talent.
The new fee, which applies only to new applications, has prompted urgent travel advisories from major firms including Microsoft, Amazon, Alphabet, and Goldman Sachs, urging employees to remain in or return to the U.S. to avoid complications.
Cognizant Technology Solutions, JP Morgan, and Intel — some of the largest H-1B sponsors — saw their shares drop between 1.2 and 1.6 per cent in premarket trading. Analysts at Jefferies warned that the fee could shrink profits by 4–13 per cent, as firms compete for a smaller pool of domestic workers and are forced to raise wages.
Indian IT workers, who make up the majority of H-1B visa holders, are expected to be hit hardest. Indian IT stocks tumbled nearly 3 per cent on Monday, dragging down the broader Nifty 50 index. Analysts at Ambit Capital said the steep new fees would effectively shut out most new H-1B applications, calling the policy “economically unviable” for Indian firms.