1B firewall expands US protectionism against India, threat to USD 190 bn service exports: Report

New Delhi [India], September 23 : The latest move by US President Donald Trump to revise the H-1B visa fee to USD 100,000 has expanded protectionist barriers against India, according to a report by Systematix Research.

The report said Trump’s decision extends his anti-India trade offensives beyond the merchandise trade deficit and poses a fresh threat to India’s USD 190 billion services export industry.

It stated “Trump’s H-1B Firewall Expands US Protectionism Against India…..escalate US protectionism, targeting India’s IT sector and threatening its USD 190 billion services export industry.”

The research noted that the Trump administration’s new H-1B visa restrictions, imposing a steep USD 100,000 fee, risk reshaping US-India economic ties and India’s macro-financial stability. This comes at a time when trade relations between the two countries are already strained.

The report also shared that Trump administration has adopted hot-and-cold tactics in its engagement with India. Earlier, the US had maintained a 25 per cent import tariff on Indian goods along with a 25 per cent penalty on Russian oil imports.

These measures had pushed India closer toward the China-Russia axis. At one stage, conciliatory signals from Washington hinted at moderation in trade tensions with PM Modi and Trump have exchange good greetings on social media, but the latest offensive on H-1B visas has again soured prospects noted the report.

The White House has defended the move, arguing that the H-1B visa program has led to wage suppression and job displacement for American workers.

It cited data showing that the number of foreign STEM workers in the US more than doubled from 1.2 million in 2000 to nearly 2.5 million in 2019, while overall STEM employment grew only 44.5 per cent in the same period.

The report noted that for India, the implications are complex. Even if New Delhi curbs Russian oil imports to avoid the additional 25 per cent tariff, the H-1B restrictions are expected to persist.

According to the report, extending such non-tariff barriers to services broadens uncertainty in bilateral ties and adds friction in trade. For the US, these measures may not only act as leverage for market access but also serve as a broader tool of economic pressure.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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