Trump's H-1B Visa Fee Hike: A New Era of Protectionism

In a contentious move, US President Donald Trump has increased the H-1B visa fee to a steep USD 100,000, a decision criticized as expanding protectionist measures specifically targeting India's burgeoning IT sector. A report by Systematix Research highlights that this exacerbates existing trade tensions and threatens India's USD 190 billion services export industry.

The report suggests that these new restrictions are likely to have wide-ranging implications for US-India economic relations, already strained over import tariffs on Indian goods and penalties on Russian oil imports. Previously, subtle diplomatic overtures hinted at easing tensions; however, the H-1B fee hike appears to have reversed any progress.

The White House justifies the fee increase as a necessary step to combat wage suppression and job displacement in the American workforce, pointing to a surge in foreign STEM workers. For India, the move compounds the complexity of its economic strategies and adds obstacles in bilateral trade discussions, as both nations navigate an intricate geopolitical landscape.

(With inputs from agencies.)