By this point, we probably shouldn’t be surprised by Donald Trump making big, unpredictable and controversial economic decisions, but somehow, he still manages to astonish the best of us. Indeed, the consistency of this shock factor may even be impressive if these decisions weren’t so questionable.
So, what’s he done this time?
Trump and his administration have made a lot of people very unhappy (once again) by announcing that H-1B visa applicants would now be required to pay a fee in order to be eligible for consideration of the visa. The H-1B US visa is, essentially, a specialised work visa for skilled non-immigrants in the United States.
The fallout from this announcement was immediate, with both US businesses and employees alike panicking about the future employment of H-1B visa holders.
The reason for the concern is centred on the fact that the United States has, historically, been a global tech hub with Silicon Valley at the centre, and a great deal of the region’s skilled workforce have been non-US citizens – that is, H-1B visa holders. Indeed, much of the tech startup community and the tech industry in the country more broadly has been incredibly reliant on these people.
So, it follows that this potential fee poses a significant threat to both the professional careers (and livelihoods) of these employees, as well as the companies that are so reliant on their expertise to both function and innovate.
This is the Trump administration’s latest move in its anti-immigration campaign, supposedly intended to fuel the US economy. However, critics are pointing out the obvious – with much of the US tech empire dependent on the very people this new law will target, surely the result will be a mass exodus of skilled tech workers from the US?
Of course, if they leave, they’ll need to go somewhere else, creating a massive opportunity for other countries to open their arms (and doors) to the highly skilled workforce that is largely responsible for building Silicon Valley into the powerhouse that it is today.
Why Does the H-1B Visa Matter So Much To the US Tech Industry?
The H-1B visa has long been a cornerstone of the United States’ dominance in technology and innovation. For decades, Silicon Valley has thrived on the skills, ideas, and creativity of workers from across the world, especially in fields like software development, engineering and artificial intelligence.
In fact, many of the brightest minds powering the biggest names in US tech, whether at startups or household giants, are non-US citizens who entered the country through this visa programme. Ultimately, there is no way (at least rationally) to deny the contributions made by H-1B visa holders to the US economy in the 21st century.
By imposing a fee of $100,000 just to apply, the Trump administration risks disrupting this delicate ecosystem.
The consequence is twofold. On one hand, companies may struggle to access the talent they need to stay competitive. And, on the other, skilled professionals may see the US as no longer a viable place to build their careers. Both these consequences are, of course, very negative for the US.
While critics argue this could suffocate innovation, others suggest it might be the catalyst for a shift in global tech leadership. If the US closes its doors, the talent and investment will simply find new homes – potentially reshaping the balance of power in the tech world.
Essentially, it’s tough to see, realistically, how this move could be anything but negative for the US. The intention may be, in theory, to hold onto these jobs for Americans rather than foreigners, but it doesn’t seem like many people actually believe that this is a realistic outcome. The overwhelming expectation is that if this H-1B visa application fee ends up being forced, it’s not going to be good for the US, but the rest of the world – from the UK and Europe to tech-savvy countries further afield like the UAE and even South Africa – stand to benefit dramatically.
Talent on the Move: Where Will Skilled Workers Go?
So, if highly skilled workers are priced out of the United States, the question is not whether they will move, but rather, where they’ll move to.
For many, the UK presents itself as an attractive alternative. London already rivals Silicon Valley as a thriving hub for startups and fintech, bolstered by English as the global business language and a strong venture capital presence. And, the Global Talent Visa and other flexible immigration pathways further strengthen the UK’s ability to welcome displaced professionals.
The UK, however, is not alone in recognising this opportunity. The United Arab Emirates, particularly Dubai and Abu Dhabi, has been making significant strides in positioning itself as a tech and innovation hub. With its tax advantages, fast-growing startup ecosystem and business-friendly policies, the UAE is quickly emerging as a serious competitor.
Likewise, continental Europe (from Germany’s engineering-heavy industries to France’s AI initiatives) is keen to absorb the expertise that might leave the US. For the first time in years, the monopoly of Silicon Valley on global tech talent looks vulnerable, and the UK has the chance to lead this new migration if it acts decisively.
Another option, as we touched on, is that some young tech talent may opt for more developing countries – places like South Africa, for instance – that have rapidly growing tech scenes and an impressive emerging startup scene. It’s a more risky move in terms of it being full of potential rather than a definite opportunity, but places like South Africa have other things going for them, like far lower cost of living, an enviable lifestyle and many also have English as a first language.
So, it seems like the UK is probably going to be a first-choice alternative for many, but it’s definitely not the only option available.
Our Experts
- Lee Holmes: CEO of INFINOX
- Peter Tashjian: Partner at Love & War
- Ilda De Sousa: Business Immigration Partner at Kingsley Napley
Lee Holmes, CEO of INFINOX
“Trump’s decision to impose a $100,000 H-1B visa fee could potentially push global tech talent to rethink whether the U.S. remains their first choice. For the UK, this presents a valuable opening. London has long been Europe’s leading tech hub, with a rich ecosystem of start-ups, investors, and established firms, but the opportunity goes beyond the capital. To truly attract displaced engineers, developers, and entrepreneurs, Britain needs to signal that it is ready to compete on the world stage with a visa system that is not only streamlined but predictable and welcoming.
“Other global hubs such as Bengaluru, Toronto, Tel Aviv and Singapore are already booming, and they will be quick to capitalise if the UK hesitates. My hope is that ministers seize this moment by building on current proposals to simplify immigration and potentially waive fees for top talent. If Britain can show it is serious about creating a stable, accessible pathway for skilled workers across all levels, it could position itself as a natural destination for global talent at a time when the U.S. risks losing its shine.”
Peter Tashjian, Partner at Love & War
“As a branding agency, we tend to look at moves like this through the lens of reputation and national brand equity. America’s global brand has long been built on a simple and powerful idea: that this is the best place for the world’s best people to thrive.
“If you’re great, America is where your greatness will be recognised, realised and rewarded. And nowhere represents this idea more directly than Silicon Valley – a place built by global talent.
“The proposed $100,000 H-1B visa fee undermines this narrative and erodes our national brand equity. It signals that we’re less interested in attracting the world’s best, and more focused on gatekeeping. This weakens our competitive advantage, not just in Silicon Valley but in any industry that thrives on innovation and excellence.”
Ilda De Sousa, Business Immigration Partner at Kingsley Napley
“It’s fair to say that this past weekend saw widespread confusion in the US, largely due to a lack of clear communication from government authorities. The extremely high cost of $100,000 will impact all sectors in the US but especially the tech sector, which is heavily reliant on the H1B program.
“However, this could potentially benefit the UK, where the demand for AI skills continues to grow and where the announcements connected to last week’s Trump visit will no doubt appeal to tech talent. Any overhaul of our global talent visa in addition, which is rumoured to be on the cards, would be a further fillip. “
