Alongside his Commerce Secretary Howard Lutnick, Trump unveiled a new, extortionate message to the foreign-born employees and the US businesses that rely on them: pay up, or ship out. But his decision to apply a starting price of $100,000 (£74,211) annually for recipients of the coveted American H1-B visa was met with fury at home and abroad, and a mad scramble by the White House to row back on some of the announcement’s key details.
“Either the person is very valuable to the company and America, or they’re going to depart”, proclaimed Lutnick. He ordered US corporations to “stop bringing in people to take our jobs…hire Americans, and make sure the people coming in are the top, top people”.
Trump and Commerce Secretary Howard Lutnick (Photo: Alex Brandon)
Annually, around 85,000 H1-B visa applicants are granted permission to enter the United States via a lottery process, and bring their skills to bear for many of the country’s leading corporations. Annually, approximately 2,000 British citizens are among those granted the coveted travel document.
In the medical field alone, Trump’s plan threatens to leave hospital systems, research centres and teaching schools facing a nightmarish choice: continue to bring skilled workers into the industry by paying the government $100,000 a year for each H1-B visa holder they employ, or else recruit less-qualified American staff.
Tech firms – particularly those in the thriving AI or quantum computing sectors celebrated by Trump during last week’s state visit to the UK – may have the financial wherewithal to stump up the cash that the White House is demanding. But as Musk’s intervention made clear earlier this year, even tech executives on board with Trump’s general approach to governance fear the US simply lacks enough qualified staff to fill the void that is about to be created.
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Late on Saturday, White House press secretary Karoline Leavitt issued a “clarification”. Despite Lutnick’s insistence to the contrary, the $100,000 would only be applied once, not annually, and the fee will only apply to new H1-B applicants, not existing visa holders.
Now, just eight months after his inauguration, the arch-protectionist in the White House has turned, beguiled by suggestions that his own government can make some fast money out of skilled workers the US economy desperately needs.
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