The Trump administration’s latest crackdown on H-1B visas is hitting Indian tech workers hard and stirring up fresh tensions in US-India relations. US media outlets reported Monday that the move is creating real obstacles for a quick US-India trade deal, just as talks heat up.
At the heart of the issue is a new $100,000 fee for each fresh H-1B visa application. President Donald Trump signed the order last Friday, and it’s set to shake up the program that brings skilled foreign talent to American companies. Indians have snagged more than 70% of these visas in recent years, so this policy lands a major punch on India’s massive $280 billion tech services industry. Experts warn it could disrupt outsourcing deals and put thousands of jobs on the line.
One economist told Bloomberg that US-India trade negotiations are now tangled up with bigger geopolitical goals, making it tougher to iron out differences. “The talks are getting increasingly intertwined with geopolitical objectives,” the report quoted, highlighting how this visa squeeze complicates everything.
The announcement sparked confusion over the weekend, with many wondering if it would block current H-1B holders from returning to the US. But the White House quickly cleared that up in a statement to on Saturday. “This is a one-time fee that applies only to the petition,” an official said. “It ONLY applies to new visas, not renewals or current visa holders. It will first apply in the next upcoming lottery cycle.”
White House spokeswoman Taylor Rogers added that the goal is to protect American workers. “President Trump promised to put American workers first, and this common-sense action does just that by discouraging companies from spamming the system and driving down wages,” she explained. “It also gives certainty to American businesses who actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system.”
The timing couldn’t be worse—or more pointed. India’s Commerce and Industry Minister Piyush Goyal is in Washington right now, meeting top Trump officials to push forward a US-India trade agreement. Meanwhile, External Affairs Minister S. Jaishankar is chatting with US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly meetings. As these leaders negotiate, the H-1B visa restrictions are adding urgency to the discussions on trade, tech talent, and bilateral ties.
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