WASHINGTON– The Trump administration’s decision to sharply restrict H-1B visas has dealt a new setback to U.S.-India ties, raising concerns within India’s technology sector and complicating ongoing trade negotiations.
According to a Bloomberg report, the White House’s move to impose a $100,000 fee on new H-1B applications is expected to disproportionately affect Indian workers, who account for more than 70 percent of recipients. Analysts warn the policy could destabilize India’s $280 billion IT services industry, undermining outsourcing models and threatening thousands of jobs.
“The trade talks are getting increasingly intertwined with geopolitical objectives, complicating the ability to resolve frictions,” one economist told Bloomberg.
President Donald Trump signed the proclamation Friday, announcing the fee as part of his push to protect American workers. The move initially created confusion, with many fearing existing H-1B holders might be barred from reentering the United States.
The White House later clarified that the measure applies only to new applications in the next visa lottery cycle. “This is a one-time fee that applies only to the petition. It ONLY applies to new visas, not renewals or current visa holders,” a White House official told IANS.
Taylor Rogers, White House spokeswoman, defended the order as a way to stop companies from “spamming” the system. “President Trump promised to put American workers first, and this common sense action does just that. It discourages abuses of the system and gives certainty to American businesses who actually want to bring high-skilled workers to our great country,” Rogers said.
The timing of the policy shift has raised eyebrows, coming as India’s Commerce and Industry Minister Piyush Goyal visits Washington for trade talks with senior U.S. officials. At the same time, External Affairs Minister S. Jaishankar is set to meet Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in New York.
Observers say the new visa restrictions risk further complicating those high-level discussions, injecting another layer of strain into an already sensitive phase of U.S.-India relations. (Source: IANS)
