Trump's $100,000 H-1B visa fee could hurt US growth, economists warn

"Donald Trump's decision to impose a $100,000 (74,096) fee on H1-B visas for skilled foreign workers could hurt US economic growth, economists have warned. Trump signed a proclamation on Friday introducing the application fee for the H-1B visa, 60 times the current cost, in a move designed to encourage companies to hire more American workers. The increase represents a blow to big tech companies, which rely heavily on such visas to hire engineers, scientists and coders from overseas, particularly India."

"Atakan Bakiskan, an economist at the investment bank Berenberg, said the move was an example of the Trump administration's anti-growth policymaking. By making it very expensive for companies to attract foreign talent, and by forcing some international students to leave the country after graduation, the brain drain will weigh heavily on productivity, he added. Investments in artificial intelligence are unlikely to offset the damage caused by the loss of human capital under restrictive immigration policies."

"However, Bakiskan warned that, unless Trump relents, the 1.5% forecast may soon look optimistic. He said: Taken together, the erosion of trust in institutions, a loss of human capital, tariffs, chronic uncertainty, and unsustainable fiscal policies can raise the tail risk of a financial crisis in the US. In the long run, they may set a path for an even weaker dollar and higher long-term yields."

Donald Trump imposed a $100,000 fee on H-1B visa applications, about 60 times the current cost, to encourage companies to hire more American workers. The increase jeopardizes hiring of engineers, scientists and coders from overseas and represents a major blow to big tech firms that rely on such visas, particularly from India. Economists warn the fee will make attracting foreign talent very expensive, force some international graduates to leave, and create a brain drain that reduces productivity. Investments in artificial intelligence are unlikely to offset lost human capital. The policy cut Berenberg's US growth forecast and raised concerns about greater financial and market uncertainty. The announcement caused disruption in the tech sector and prompted a White House clarification that the higher fee would apply only to new applicants as a one-off payment.

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