New Delhi: A sudden proclamation by US President Donald Trump imposing a $100,000 fee on new H-1B visas has thrown major US tech and finance companies into chaos, forcing them to scramble to protect their foreign workers and prepare for legal battles, according to a detailed report by The New York Times.

The move, signed on Friday and set to take effect Sunday (September 21), caused confusion. Major employers like Microsoft, Amazon, and JPMorgan urgently advised staff on H-1B visas outside the country to return to the US before the September 21 deadline.

In an attempt to quell the panic, the White House clarified on Saturday (September 20) that the fee would only apply to new applicants and not affect current visa holders. However, corporate law firms reported that a state of "chaos and panic" persisted as companies navigated the "foggy conditions" of the new policy.

Haphazard rollout

The corporate panic was fuelled by a haphazard and contradictory rollout from the administration.

Critics and policy experts pointed out that the Commerce Secretary initially suggested the annual fee applied to all H-1B workers, a position seemingly backed by the official announcement. This was then contradicted by a social media post from the Press Secretary claiming the fee only affected next year’s new applicants. Further complicating matters, the State Department, the agency responsible for implementation, remained silent.

White House officials defended the measure as a way to ensure companies prioritise hiring American workers. "President Trump promised to put American workers first, and this common sense action does just that," said spokeswoman Taylor Rogers.

Industry leaders fiercely rejected this view, warning the steep fee would damage US competitiveness. Adam Kovacevich of the tech coalition Chamber of Progress said the policy means "fighting the A.I. war against China with one hand tied behind our back."

The American Immigration Lawyers Association confirmed it was preparing to file a legal challenge seeking a temporary restraining order against the proclamation.

The Indian government, whose citizens are the largest recipients of H-1B visas, issued a statement expressing concern that the measure is "likely to have humanitarian consequences by way of the disruption caused for families."

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