In the wake of Donald Trump’s latest move against immigrants, the US tech sector is grappling with significant implications. The former president recently announced a new fee of $100,000 annually for all H-1B visas, which allow skilled workers to enter the United States, particularly impacting the technology industry. Major firms like Amazon, Google, and Microsoft quickly responded by recalling their H-1B visa holders from abroad and dissuading them from traveling in the near future. Meanwhile, European competitors are positioning themselves to attract disillusioned foreign talent from the US.
Barney Hussey-Yeo, founder of the British fintech startup Cleo, expressed concern about the impact of the new fee on skilled professionals. He urged those affected to consider opportunities in the UK, highlighting over 100 available positions in his company’s London office. “We understand that relocating might not have been in your plans, but unexpected shifts often lead to the best opportunities,” he remarked on LinkedIn.
Victor Riparbelli, co-founder and CEO of AI startup Synthesia, echoed similar sentiments, stating, “H-1Bs are causing a lot of uncertainty right now. Thankfully, you don’t need one to secure a job like what you’d find in Silicon Valley.”
The appeal for talent is not limited to unicorn companies. Ross McNairn, CEO of the Scottish legal AI firm Wordsmith, announced on social media that they are open to sponsoring visas for engineers looking to work in the UK. Posts from leaders of smaller tech firms, such as Definely and Exo Labs, highlight their willingness to assist H-1B holders with relocation, promising competitive salaries and a more stable working environment than the uncertainty present in the US.
The UK government is also capitalizing on the upheaval surrounding H-1B visas, with reports suggesting it is strengthening its initiative to eliminate visa application fees for top talent from around the globe.
In response to concerns regarding the new fee, US officials have reassured employers that the $100,000 charge will not apply to renewals or existing visa holders, allowing current participants to travel without incurring additional costs upon re-entry.
The administration has pledged to include exemptions for specific sectors, particularly those that rely heavily on H-1B visas, such as technology, research institutions, and healthcare, with doctors being a primary focus for potential fee waivers.
Despite these assurances, many companies remain cautious and are proactively working to get their employees back to the US before the cutoff date of September 21st. Executives are advising staff to cancel any planned trips and remain in place, as the administration has faced criticism for its treatment of foreign workers and the increasing unappeal of the US as a destination, stemming from policies like the revocation of numerous student visas and other restrictive measures against foreign nationals.
U.S. companies are bracing for the negative consequences of the new policy. While larger tech firms may weather the changes, startups are likely to suffer significantly, as noted by Garry Tan, CEO of Y Combinator. He criticized the policy as a financial burden for emerging companies, suggesting it could push innovation overseas as the industry faces a critical moment amidst an AI revolution.
The complex relationship between Trump and the tech industry is well-documented, and it appears unlikely that the grievances raised by tech leaders will prompt any significant reconsideration on his part. Instead, the new policy may serve as a tool to reinforce his stance against Big Tech, potentially forcing executives to conform to his directives in an effort to maintain favorable treatment.
