Despite raising the H-1B visa fee to $100,000, President Trump acknowledged the need for skilled foreign workers to support critical industries.
The US’s tighter immigration measures, including raids targeting illegal foreign workers, have created tensions with allies such as South Korea.
The proposed HIRE Bill and visa restrictions threaten India’s $250 billion export sector, heightening the urgency for a new US-India trade deal.
US President Donald Trump said the country needs skilled foreign laborers despite his administration increasing the H-1B visa fee to $100,000. “You also do have to bring in talent. You don’t have certain talents. And you have to — people have to learn. You can’t take people off, like an unemployment line, and say, ‘I’m going to put you into a factory. We’re going to make missiles,’” Trump said in an interview with Fox News.
Trump highlighted that a certain level of skilled laborers is needed after he and his team hiked the fee. H-1B visas are widely used by the country’s largest companies, including tech giants, to attract workers from overseas.
31 October 2025
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India has been among the biggest beneficiaries of the H-1B visas, as thousands of engineers graduate every year. However, earlier this year, Trump imposed a $100,000 application fee for H-1B visas, which even led to a lawsuit from the US Chamber of Commerce, pointing out the tensions between corporate America and the Trump administration’s stricter immigration policies.
US Immigration Policy Strains Foreign Relations
The stricter immigration policies have strained relations with several US allies, including South Korea. Back in September, a federal raid at Hyundai Motor Co. and LG Energy Solution Ltd. in Georgia led to the detention of over 300 South Korean workers who were accused of being in the country illegally. After the incident, Trump assured he is working on a “whole new plan” to allow highly skilled workers into the US to support new manufacturing projects.
Since the beginning of his second term in the Oval Office, Trump has called for a more restrictive approach to the H-1B visa program while keeping its annual cap unchanged, The Economic Times reported. His team introduced several measures, including a proposal to narrow the definition of “specialty occupation,” making it harder for companies to qualify for H-1B sponsorship. Employers have also reported tougher scrutiny of visa petitions, with higher denial rates and longer processing times.
Moreover, the US Congress is currently debating the US Halting International Relocation of Employment (HIRE) Bill, which seeks to impose 25% tax on companies for outsourcing labors. The HIRE Bill, if passed, is expected to hit India’s $250 billion export sector, which is already losing steam due to the aggressive reciprocal and punitive tariffs by the US. Industry experts and policymakers have already highlighted the need for India to push for the US trade deal and ensure the HIRE Bill does not disrupt Indian service providers.
