Like tariffs, Trump using H-1B visas to pressure India, says ace investor Cathie Wood

The rule, which took effect September 21, has already provoked strong opposition from tech companies and immigration advocates. With Indian nationals representing more than 70% of all H-1B recipients, the financial and operational blow will fall hardest on India's IT services sector

Ace investor Cathie Wood has sharply criticised Donald Trump's decision to impose a steep H-1B visa fee, calling it a heavy-handed move aimed directly at India. She likened the policy to tariffs, warning it would "take the oxygen out of the room" in US-India talks.

In an interview to Bloomberg, the ARK Invest chief argued the sudden $100,000 charge for H-1B petitions has little to do with immigration and everything to do with leverage. "This is part of Trump's so-called negotiation strategy with India. The country most affected will be India," she said, drawing a parallel to trade duties used as diplomatic pressure tools.

Wood, known for her high-conviction bets on disruptive technologies, cautioned that the approach could easily misfire. "Trump hasn't learned his lesson. He thinks he can strong-arm Modi and India with a stick. He's wrong again," she said.

The rule, which took effect September 21, has already provoked strong opposition from tech companies and immigration advocates. With Indian nationals representing more than 70% of all H-1B recipients, the financial and operational blow will fall hardest on India's IT services sector.

"This is going to dominate headlines," Wood added, describing the fee hike as a calculated attempt to control the narrative and ratchet up pressure on New Delhi. Her warning about "taking the oxygen out of the room" underscored the wider consequences: uncertainty, panic, and a chilling effect on Indian tech firms and the global talent pipeline.

Industry analysts echoed her concerns, noting that India's outsourcing and IT service providers will face higher costs and disruptions in staffing projects overseas. Indian officials also raised alarms about the broader economic and humanitarian fallout.

The H-1B program remains a crucial gateway for international graduates to stay in the US after completing their studies. Of the 85,000 visas issued annually, 20,000 are reserved for those with advanced US degrees. Yet demand continues to dwarf supply-over 470,000 people applied for the fiscal 2025 lottery.

While some business groups have long argued the visa system is exploited by outsourcing firms, others have called for expansion, stressing the need for high-skilled workers to meet persistent labour shortages.

Trump's abrupt order left employers and immigration attorneys scrambling. "It was designed to create chaos," said Karin Wolman, a New York-based immigration lawyer.