Trump’s $100K H-1B fee slams Indian IT: Infosys, Wipro ADRs sink on Wall Street

Indian IT stocks tumbled after President Donald Trump signed a proclamation imposing a $100,000 annual fee on each H-1B visa application, a policy shift that raises costs for employers, shakes U.S. hiring models, and threatens global tech talent flows.

Infosys ADRs fell as much as 4.5%, while Wipro slid 3.4% in New York trading. Cognizant dropped 4.3%, and Accenture slipped 1.3%, reflecting immediate investor concern.

American Depositary Receipts (ADRs) are important because they allow U.S. investors to buy shares of foreign companies — such as Infosys, Wipro, and Cognizant — directly on American exchanges like the NYSE or Nasdaq, in U.S. dollars. This makes it far easier to invest in businesses that are not listed in the United States, without having to navigate overseas markets, currency risks, or complex regulations.

The proclamation requires employers to pay and retain proof of payment for every new or returning H-1B worker. For Indian IT majors, who dominate the program and account for more than 70% of all H-1B visas, the policy represents a massive cost shock.

Commerce Secretary Howard Lutnick defended the fee as a way to stop the inflow of “cheaper foreign talent” and ensure only “indispensable, high-value workers” qualify. The White House positioned the move as part of a broader immigration reset to curb “abuse” of the H-1B system and push firms to hire Americans.

Analysts expect companies such as Infosys, TCS, Wipro, Cognizant, and HCL to sharply reduce on-site staffing in the U.S., reserve H-1Bs only for top-tier roles, and accelerate offshoring and remote delivery models. While this could cushion margins, it will also limit opportunities for mid-level Indian tech professionals and disrupt career pathways linked to green card eligibility.

Legal experts anticipate a wave of court challenges and industry lobbying, given the sweeping financial impact across tech and consulting. Meanwhile, the administration is introducing alternative “Gold Card” ($1 million residency) and “Platinum” visas as premium pathways for wealthy or elite applicants.

For Indian IT, the new fee threatens near-term revenues and long-term positioning in the U.S. market — the sector’s largest overseas base.