How Trump's H‑1B Fee Could Reshape Global Innovation

Since taking office for his second term, US President Donald Trump has focused heavily on reshaping the global trade environment to better favor American workers and companies. Until recently, the administration's trade-related efforts have centered on goods trade. But President Trump's September 19 executive order (EO)—aimed at promoting American workforce in high-skilled fields by disincentivizing new H-1B visa petitions—has shifted attention to the services sector. Revisions to the H-1B process will create new labor and operational realities for the US workforce. On the upside, incentivizing domestic hiring could encourage firms to invest more in training and skill development for American workers. On the downside, firms may risk ceding ground in global innovation to competitors abroad by forgoing foreign-born talent.