Donald Trump's decision to impose a $100,000 (£74,096) fee on H-1B visas for skilled foreign workers has alarmed UK tech companies that rely on the programme to hire engineers and scientists in the United States. The application fee is 60 times the current cost and is intended to encourage firms to recruit American workers.
Economists have warned that the move could damage US economic growth and have spillover effects for UK businesses. Atakan Bakiskan of Berenberg described the policy as 'anti-growth', stating that restricting access to foreign talent will cause a 'brain drain' that weighs heavily on productivity. The investment bank recently cut its US growth forecast from 2 per cent to 1.5 per cent.
Major tech firms with significant UK operations, such as Amazon, Microsoft and Google, are among those heavily affected. Amazon had over 10,000 H-1B visas approved in the first half of 2025, while Microsoft and Meta each had more than 5,000. The fee hike could force these companies to reconsider hiring strategies both in the US and globally.
The H-1B programme allocates 65,000 visas annually, plus 20,000 for advanced-degree holders. India, which accounts for 71 per cent of approved visas last year, criticised the fee as having 'humanitarian consequences'. The share prices of Indian IT firms Infosys and Tata Consulting Services fell by about 3 per cent on Monday in response to the announcement.
Kathleen Brooks of broker XTB warned that while large tech firms can absorb the cost, other sectors reliant on H-1B visas, such as healthcare and education, may struggle with recruitment. The uncertainty triggered by the proclamation led the White House to clarify that the fee applies only to new applicants and is a one-off payment.
