A surprise order from U.S. President Donald Trump imposing a US$100,000 annual fee on new H-1B visa applications has triggered panic across Indian communities and the global tech sector, with fears of mass disruption to skilled immigration and soaring costs for employers.
The announcement caused chaos over the weekend, including a dramatic scene aboard an Emirates flight from San Francisco to Dubai, where anxious H-1B holders debated whether to deplane amid confusion about their ability to re-enter the United States. Indian tech workers make up the largest share of H-1B recipients, and the policy could impact hundreds of thousands of career plans while upending hiring strategies for major tech firms.
Amazon, the top H-1B sponsor this year with roughly 10,000 visas approved, could face an estimated $1 billion cost if it maintained similar hiring levels. Indian tech giant Tata Consultancy Services, the second-largest recipient with over 5,500 petitions, would face more than $550 million in additional annual expenses. Analysts say the fees will likely force companies to reserve H-1B visas only for highly critical roles and accelerate a shift toward offshoring and near-shore hiring in Canada and Mexico.
India’s Ministry of External Affairs warned the new policy could have “humanitarian consequences,” particularly for families, while the country’s IT industry association NASSCOM warned of ripple effects on America’s innovation ecosystem.
The visa hike follows last month’s 50% U.S. tariffs on Indian goods over Russian oil imports, escalating economic tensions between Washington and New Delhi. Some Indian economists, however, see a silver lining, predicting the policy could drive more talent and investment back to India, helping it emerge as a stronger tech hub.