Shares of big tech like Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) slipped between 0.4% to 0.5% in Monday pre-market session amid Trump’s H1-B crackdown. Intel (NASDAQ:INTC) stock fell 1.2%.
H-1B Visa Fee Hike Sparks Concerns for US Firms
Trump’s administration revealed on Friday that it would demand a $100,000 one-time annual fee for H-1B working visas, a move that has raised concerns about higher labor expenses and limited access to skilled workers.
While the new fees only apply to new applications, analysts warn that the limited supply of skilled workers in the U.S. could lead to increased wages and reduced margins.
Several major tech companies and banks, including Microsoft, Amazon, Alphabet, and Goldman Sachs (NYSE:GS), have issued urgent travel advisories to their employees.
Shares of other companies heavily reliant on H-1B visas, such as JP Morgan (NYSE:JPM), fell 1.65% during premarket trading.
Higher Visa Fees May Raise Costs for Indian IT Workers
The revised visa fees, anticipated to have a moderate effect, may trigger a shortage of skilled workers in the U.S., potentially pushing wages higher and pressuring corporate profits, as per analysts. Indian IT professionals, who account for most H-1B applicants, could encounter higher expenses and slower revenue growth as a result of the changes.
Trump’s visa fee proposal initially caused confusion among large U.S. companies, prompting the White House to clarify that it is a one-time charge for each visa petition, not an annual fee. The move, part of Trump’s broader immigration crackdown, aims to push firms to prioritize domestic workers.
Despite the controversy, some industry figures, such as Netflix (NASDAQ:NFLX) co-founder Reed Hastings, have supported the new fees, calling them a “great solution” to the H-1B program’s lottery system.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
