‘End H-1B abuse, hire American’: US Dept of Labour amid H-1B visa fee hike 

The US Department of Labour, not mincing its words, asked American companies to hire American people and to stop the “abuse” of H-1B visa, whose fee was hiked by US President Donald Trump to $100,000, effectively closing the popular work visa for a large chunk of its applicants. This visa fee hike has come amid a rhetoric that immigrants have taken all jobs, leaving American citizens jobless. 

“End H-1B abuse. Hire American,” said a social media post of the DOL. It shared a picture of US President Donald Trump along with three separate headlines from Time, The Washington Post, and Bloomberg Law, shedding light on the H-1B visa policy. 

Critics and experts questioned Trump’s decision, pointing to the immense contribution of the Indian diaspora to the American economy. Meanwhile, seeing this as an opportunity, countries like the UK, Germany, Canada are hoping to attract high-achieving Indians to boost their economies. 

Trump’s decision to tighten the H-1B norms come amid a dip in ties with India. Trump’s officials, for long before the decision, used anti-India rhetoric to highlight what they perceived as the issue with the H-1B visa. Indians are the biggest beneficiaries of the H-1B visa, followed by the Chinese. 

The anti-India rhetoric came after New Delhi refused to give credit to Donald Trump for negotiating a ceasefire between India and Pakistan, and thereby not nominating him for the Nobel Peace Prize. Washington slapped 25 per cent tariffs on India, followed by another 25 per cent for India’s continued purchase of Russian oil. The US followed it with accusations of India for fuelling the Ukraine war and profiteering from it. Then came the H-1B diktat, and then the revoking of the sanctions waiver for operations at Iran's Chabahar Port.

The move could disrupt services exports and remittance inflows, sectors that have remained resilient despite global trade tensions. The finance ministry's monthly economic report stated that the near-term impact of the fee is expected to be manageable. However, prolonged restrictions will require close monitoring, especially as alternative export markets are still developing. The report highlighted that this measure adds to existing trade uncertainties affecting India’s goods exports. Tariff-related risks continue to challenge the economy, with possible effects on domestic employment, income, and consumption.