Daijiworld Media Network - Washington
Washington, Sep 22: As the Trump administration intensifies its crackdown on the H-1B visa program — a move that disproportionately impacts Indian tech workers — US-India relations are facing renewed friction. On Friday, President Donald Trump signed a proclamation introducing a steep $100,000 fee for each new H-1B application, triggering alarm within India’s $280 billion tech services industry and casting a shadow over ongoing trade negotiations.
The measure has stirred confusion and concern, particularly over the weekend, as initial interpretations suggested that even current visa holders might face challenges returning to the US. However, the White House clarified to IANS that the new fee is a one-time cost applicable only to new H-1B petitions, not to renewals or existing visa holders. The change will be enforced starting from the next H-1B 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 confirmed. The administration insists the move is aimed at curbing what it calls “abuse” of the system, where companies flood the visa lottery to boost their odds of selection.
“President Trump promised to put American workers first,” said White House spokeswoman Taylor Rogers. “This common-sense action discourages companies from spamming the system and driving down wages, while providing certainty for businesses that genuinely need skilled talent.”
Despite these assurances, the impact is significant for Indian nationals, who historically account for more than 70% of H-1B visas issued annually. The new policy threatens to disrupt the global outsourcing model that underpins India’s IT sector and could jeopardize thousands of jobs both in India and in the US.
The visa issue has also added fresh complexity to already delicate trade negotiations between Washington and New Delhi. According to a Bloomberg report, an economist noted that the trade talks are “getting increasingly intertwined with geopolitical objectives,” making it harder to resolve sticking points in the relationship.
The timing is particularly sensitive, with Indian Commerce and Industry Minister Piyush Goyal currently in Washington to meet senior Trump administration officials in pursuit of a long-awaited trade deal. Simultaneously, External Affairs Minister S. Jaishankar is holding discussions with US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in New York.
As both nations navigate this rocky diplomatic stretch, the visa restrictions stand as a stark reminder of the policy tensions that continue to test the resilience of US-India strategic and economic ties.