Trump H-1B Visa Fee Hike Spurs Latin American Talent Shift

President Donald Trump's administration has implemented a sharp increase in H-1B visa fees, raising concerns and prompting shifts in outsourcing and hiring practices. Latin America, particularly Mexico, could benefit from this change due to its proximity to the U.S., trade agreements like USMCA, and access to the TN visa, which remains unaffected by the fee hike, encouraging nearshoring to countries like Mexico, Colombia, and Brazil. Former RBI governor Raghuram Rajan highlighted that the proposed US HIRE Act, which could impose tariffs on outsourcing services, poses a greater threat to India's IT industry than the H-1B fee increase itself. The U.S. Department of Labor's Project Firewall enforcement initiative further intensifies scrutiny on employers using the H-1B program by allowing the Labor secretary to personally certify investigations, raising concerns about potential uneven or politically motivated enforcement. Additionally, proposed immigration rules aim to significantly raise prevailing wage levels for H-1B visa holders, potentially pricing out many foreign professionals and impacting sectors like software development and engineering. This combination of fee hikes, regulatory changes, and enforcement initiatives is reshaping the landscape for skilled foreign workers and U.S. companies reliant on them.