US President Donald Trump has signed an executive order that imposes a $100,000 annual fee on applicants of the H-1B visa program for skilled foreign workers. This new surcharge is part of a bid to curb what Trump identifies as the 'abuse' of the program and will restrict entry unless applicants pay the fee.

Critics of the H-1B visa, including many workers and labor advocates, argue that these visas undercut American labor, while proponents, including tech magnate Elon Musk, contend that they help the US attract essential global talent.

In a related order, Trump also introduced a new immigration pathway termed the 'gold card', designed to expedite visas for certain immigrants at fees starting at £1 million. Trump’s new directive is expected to come into force on September 21 and will only affect new applications, requiring companies to pay for each applicant over a six-year span.

Commerce Secretary Howard Lutnick stated that companies must weigh whether potential recruits justify the hefty fee or if they should hire American workers instead. Since 2004, the number of H-1B applications has been limited to 85,000 annually.

Historically, the H-1B visa program required various administrative fees totaling around $1,500. Recent data shows a decline in applications for the upcoming fiscal year, dropping to approximately 359,000, which is a four-year low. The major beneficiaries of last year’s H-1B visas were tech giants like Amazon and Google.

Concerned by the impending fee, various stakeholders, including India’s trade association, have expressed unease over the uncertainties this creates not only for businesses but also for professionals and students worldwide. The upcoming changes spark discussions around the balance of immigration policy, labor forces, and competitive business practices in America.