Trump's $100K visa move 'threw a lot of people, including us,' Cathie Wood says. She's still wildly optimistic about the American economy | Fortune

"Star investor Cathie Wood acknowledged that the Trump administration's abrupt announcement of a high-priced fee for H-1B visas was a shock, stating, "The suddenness, the Friday announcement and the lack of clarity threw a lot of people, including us." However, the ARK Invest CEO explained in a recent interview with Bloomberg, the controversial policy is not a long-term deterrent to attracting global talent, but a temporary and aggressive negotiating tactic aimed primarily at India."

"Wood posited that the move is part of a "much broader negotiation," particularly with India, that has not yet concluded. She described the policy directly as "punishment for India," suggesting that any negative impact on the U.S. is an acceptable "side effect that will change" once a deal is reached. The initial confusion has since been clarified, with the new fee structure applying only to new H-1B visas, a detail Wood believes is crucial."

"Despite the disruptive nature of the announcement, Wood insisted that the administration's long-term goal remains to keep as much innovation and talent in the U.S. as possible. She pointed to the administration's stated interest in integrating foreign nationals educated in American universities into the U.S. workforce as the true indicator of its overarching strategy. "I don't think this is long-term for the United States," she asserted, viewing the visa fee as a short-term anomaly."

The abrupt announcement of a high H-1B fee created immediate shock due to its suddenness and lack of clarity. The fee operates as a temporary, aggressive negotiating tactic aimed primarily at India and forms part of a broader negotiation. The measure was described as punishment for India, with any negative U.S. effects viewed as a side effect expected to change once a deal concludes. Clarification limited the fee to new H-1B visas. The long-term U.S. objective remains retaining innovation and integrating foreign graduates into the workforce. Regulatory arbitrage could allow other countries to attract skilled workers.

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