The United States appears to be retreating from the global war for talent, effectively closing its gates to many of the world’s most skilled individuals. The Trump administration’s new $100,000 H-1B visa fee is being viewed internationally as a stunning surrender, giving a clear advantage to America’s economic adversaries.
This policy is music to the ears of governments in Europe and Asia. They are now in an ideal position to attract the high-caliber professionals who are essential for building a modern, knowledge-based economy. Their message is compelling: we are open for business and welcome your expertise, without the prohibitive costs now associated with the U.S.
The potential for this policy to dethrone Silicon Valley is very real. The region’s dominance has always been dependent on being the most attractive place for the world’s tech visionaries to work. This fee shatters that image, encouraging the growth of alternative innovation hubs around the globe and diluting America’s concentration of talent.
The “Hire Americans” slogan, intended to justify the fee, is perceived abroad as a dangerously insular worldview. It ignores the well-established economic principle that skilled immigration is a powerful engine for growth, innovation, and job creation for everyone, including native-born citizens.
In essence, the U.S. has decided to hamstring its own companies. By making it exponentially more expensive to hire the best person for the job if they happen to be foreign, the administration is helping competing nations build the very industries that will one day challenge America’s place in the world.