US President Donald Trump has signed an executive order that will add a $100,000 (£74,000) annual fee for applicants to the H-1B visa programme for skilled foreign workers.

Trump's order mentions abuse of the programme and will restrict entry unless payment is made.

Critics have long argued that H-1Bs undercut the American workforce, while supporters - including billionaire Elon Musk - argue it allows the US to attract top talent from around the world.

In another order, Trump set up a new gold card to fast-track visas for certain immigrants in exchange for fees starting at £1m.

Trump's order is due to come into force on 21 September. It would only apply to new requests, but companies would have to pay the same amount for each applicant for six years, US Commerce Secretary Howard Lutnick said.

The company needs to decide... is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American, he said, adding: All of the big companies are on board.

Since 2004, the number of H-1B applications has been capped at 85,000 per year. Data from US Citizenship and Immigration Services (USCIS) shows that applications for H-1B visas for the next fiscal year fell to about 359,000 - a four-year low.

According to government statistics, the greatest beneficiary of the programme the previous fiscal year was Amazon, followed by tech giants Tata, Microsoft, Meta, Apple, and Google.

Late on Friday, Amazon told employees with H-1B visas who were already in the US to remain there.

India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved applications, with China following at 11.7%.

Tahmina Watson, a founding attorney at Watson Immigration Law, indicated that the ruling could be a nail in the coffin for many of her clients, predominantly small businesses and start-ups.

Jorge Lopez, chair of the immigration and global mobility practice group at Littler Mendelson PC, warned the $100,000 fee would hinder American competitiveness across various industries.

While some companies might look to establish operations outside the US due to these changes, the complexities involved make this a daunting prospect.

Furthermore, the debate over H-1Bs has previously split Trump's team, with advocates on both sides of the discourse, reflecting a broader national conversation about immigration policy.

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