Shares of U.S. technology companies slipped on Monday following President Donald Trump’s announcement of steep new fees on H-1B visas, raising concerns over higher labor costs and restricted access to skilled foreign workers.
Under the new policy, companies seeking H-1B visas would be required to pay $100,000 per year per employee—a move widely viewed as part of the administration’s broader immigration crackdown. The announcement prompted some major tech firms and financial institutions to issue urgent travel advisories, urging employees to either remain in the U.S. or return quickly.
Industry giants including Microsoft, Amazon, Alphabet, and Goldman Sachs were among those sending internal alerts to staff. Shares of top H-1B sponsors such as Cognizant Technology Solutions, JP Morgan, and Intel fell between 1.2% and 1.6% in premarket trading on Monday.
Analysts noted that while the fees only apply to new visa applications, the measure could tighten the supply of skilled labor in the U.S., driving up wages for domestic workers and squeezing profit margins. “The H1B fee will constrain talent supply in the U.S., which in turn will drive up demand for locals or green card holders. IT firms will have to pay these employees more or risk losing them,” Jefferies analysts said. They further warned that rising onsite wages could reduce profits by 4–13%.
Indian IT workers, who make up the bulk of H-1B applicants, could face the most significant impact. Indian IT companies have historically benefited from the U.S. work visa programs, but the new fees threaten to slow revenue growth and increase operational costs. On Monday, Indian IT stocks declined sharply, dragging the tech sub-index down nearly 3% and affecting the broader Nifty 50 index.
Ambit Capital analysts remarked, “We believe this will essentially shut out new H-1B visas except in extreme cases for Indian IT companies, as the $100K increment is nearly double their median salaries and doesn’t make economic sense.”
The move underscores the ongoing tension between U.S. immigration policy and the tech industry’s reliance on global talent, highlighting potential challenges for both domestic and international firms in maintaining a skilled workforce.