Trump’s $100,000 visa fee for foreign workers: A challenge for the US tech sector, an opportunity for Europe
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Trump’s visa hike will dramatically increase staffing costs for the US tech industry, both Big Tech and startups, likely pushing companies to expand operations abroad, especially in India.
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With the EU Talent Pool and a new visa strategy underway, Europe can attract global tech talent and strengthen its digital sovereignty.
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Other countries are already moving fast — the EU must act now to seize this window of opportunity.
The newly announced $100,000 H-1B visa fee in the United States threatens global tech mobility and will have a huge impact on the US tech sector. Starting from the 1990s, this type of visa was leveraged by U.S. companies to attract some of the world’s brightest minds, particularly in ICT and high-tech sectors. Before Trump’s announced the new fee, the cost of a H-1B visa ranged between $1,700 and $4,500, but with such steep costs now attached to hiring talent from abroad, the playing field is shifting.
Big Tech — which employs the vast majority of H-1B visa holders — will see staffing costs soar, if they want to secure strategic tech talents. The policy is designed to create more tech jobs for the US workforce. However, the shortage of talent is likely to push many companies to accelerate plans to expand operations abroad, particularly in India, the country most affected by the fee. Digital SMEs and Startups, while employing fewer visa holders, may suffer the worst impact: unlike wealthy multinationals, they lack the resources to absorb such shocks. The race for indigenous talent will intensify, leaving smaller companies unable to compete fairly with Big Tech in attracting skilled labor within the US.
For Europe, this is not just any other news message from across the Atlantic — it is a strategic opportunity to attract talent and boost innovation.
The move of the U.S. President comes at a pivotal moment: the EU is updating its visa policy strategy and advancing the EU Talent Pool, a platform designed to connect skilled workers from third countries with European companies. If properly implemented, these initiatives could be game-changers for Europe’s digital sovereignty, enabling European innovative companies to attract talent from third countries, who might otherwise have gone to the US, while at once deterring the brain drain of too many European graduates toward Tech giants across the pond.
That said, timing is critical. The EU needs to act fast.
Within the Union of Skills framework, initiatives such as Choose Europe for Science have shown to be a quick response to attract researchers in the wake of visa tightenings in the US, but now it is the turn for (Tech) industry workforce.
Rapid action looks especially urgent as other countries are already scrambling to seize the opportunity that has been offered by the U.S. Administration: the United Kingdom is currently looking into ways to abolish visa fees for top tech talent, following Prime Minister Keir Starmer’s proposal, while China could step on the throttle in the global race for AI talent.
Two priorities should guide the way forward:
- Accelerate the EU Talent Pool. The tool should be fully deployed as soon as possible, giving European companies — not only the large ones — direct access to international talent.
- Deliver a modern visa framework. Europe must simplify procedures to make them fast, predictable, and SME-friendly, ensuring that smaller companies and start-ups can compete for talent on equal footing with larger corporations.
The EU now has a rare chance to turn an American barrier into a European advantage. By accelerating the EU Talent Pool and delivering a modern, SME-friendly visa framework, Europe can close skills gaps, boost innovation, and strengthen its digital sovereignty.
The window of opportunity is open — but it won’t stay open for long. Europe must act now.
