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U.S. Imposes $100,000 Surcharge on New H‑1B Petitions as Canada Courts Talent

Canada signals new pathways for skilled workers priced out by the U.S. fee.

Overview

  • President Donald Trump’s proclamation took effect on September 21 and applies to new H‑1B applications only, with current holders and renewals exempt.
  • The U.S. Department of Labor amplified the policy’s stated goal with a message to “End H‑1B abuse. Hire American,” echoing the White House’s rationale of curbing worker displacement.
  • Employers are reassessing hiring plans given the cost shock, with analyses noting that 1,000 new H‑1B hires would add $100 million in fees for a single company.
  • India’s government warned of risks to services exports and remittances and directed missions to assist nationals, while a finance ministry report described the near‑term impact as manageable.
  • Canada’s Prime Minister Mark Carney said Ottawa will unveil proposals to recruit affected talent, as Germany and the UK make similar overtures, and immigration lawyers forecast legal challenges to the directive.