The decision by Donald Trump's administration to impose a significant $100,000 fee on H-1B visas for skilled foreign workers in the United States has elicited strong reactions, particularly from India, the primary beneficiary of these visas. This new fee, which is 60 times the previous cost, came into effect on a Sunday, sending immediate shockwaves through the global IT and tech industries.

The H-1B visa program is designed to allow US companies to recruit skilled foreign professionals, especially in sectors experiencing domestic labor shortages such as IT, healthcare, and engineering, for a period of up to six years. India has historically been the largest recipient, accounting for 71% of approved H-1B visas in 2024. However, the White House justified the fee increase by claiming the visas were being "abused" to undermine American wages and facilitate the outsourcing of IT jobs, leading to the displacement of thousands of US workers in favor of cheaper foreign labor. Those on H-1B visas now account for 65% of the IT workforce in the US.

India's response was swift and critical. The external affairs ministry warned of "humanitarian consequences" due to family disruptions and emphasized the substantial contributions of skilled workers to both nations' economies. India’s commerce minister, Piyush Goyal, remarked, "They are also a little afraid of our talent," highlighting a perceived competitive anxiety from the US. The immediate aftermath saw share prices of major Indian IT companies like Infosys and Tata Consulting Services slump. Nasscom, India’s IT trade body, cautioned that the move could have "ripple effects on America’s innovation ecosystem" and create "considerable uncertainty" for businesses and professionals globally. The chief minister of Telangana, a state with many IT workers in the US, urged Prime Minister Narendra Modi to address the issue "on a war footing."

Confusion and panic gripped H-1B visa holders and new applicants. Initially, there was widespread alarm regarding whether the fee applied to existing visa holders or those seeking renewals, prompting some companies to advise employees to return to the US before a specific deadline. Although the White House later clarified that the order applied only to new applicants, the initial uncertainty caused "absolute panic" among workers who reported feeling like they were under a "travel ban." Many began to question their long-term prospects in the US, citing the high level of uncertainty surrounding immigration policies. China, the second-largest recipient of H-1B visas (11.7%), also experienced confusion and online criticism, with social media users accusing the US of "maliciously crafting policies purely to torment H-1B holders."

In stark contrast to the US policy, the United Kingdom is actively exploring strategies to attract top global talent, including US scientists and digital experts. Keir Starmer’s "global talent taskforce," co-chaired by Varun Chandra and Patrick Vallance, is examining proposals to fast-track visa applications, reduce administration charges, and even potentially cut visa application costs to zero. The UK’s existing global talent visa, introduced in 2020, already targets eminent individuals in science, engineering, humanities, medicine, digital technology, and arts and culture, though it currently costs £766 per applicant plus a £1,035 health charge. Treasury officials are involved in discussions aimed at creating a comprehensive package to lure talent and boost economic growth, acknowledging that current fees and complex paperwork are deterrents.

Additionally, plans to apply inheritance tax to the global wealth of non-domiciled UK residents, proposed by Rachel Reeves, might be modified or scrapped as part of these wider inducements. This consideration comes after criticism from wealthy individuals who have left Britain due to the new non-dom tax rules. In the year ending June 2023, the number of global talent visas granted by the UK saw a substantial 76% rise, reaching 3,901, indicating a growing success in attracting high-skilled individuals. The Home Office has stated that these routes aim to "attract and retain high-skilled talent... to maintain the UK’s status as a leading international hub for emerging talent and innovation."

The diverging approaches by the US and the UK create a dynamic landscape for skilled international professionals. While the Trump administration's H-1B fee hike aims to prioritize domestic labor, generating concern and economic impact, the UK's proactive measures seek to capitalize on this shift by positioning itself as an attractive destination for global expertise, fostering innovation and economic growth.