In September 2025, US President Donald Trump made what critics are calling one of the most economically damaging decisions of his second term: announcing plans to impose a R1.8 million fee on the country’s critical H-1B work visas.
The proposal sent shockwaves through the global technology and research sectors — and almost immediately created an opportunity for Canada, which has moved quickly to position itself as a more welcoming alternative for highly skilled foreign workers.
To understand why Canada stands to benefit, it is first necessary to understand the importance of the H-1B visa to the United States economy.
Why the H-1B Visa Matters
The H-1B visa is a non-immigrant permit that allows skilled foreign nationals in specialised occupations to work legally in the United States. It has long been a cornerstone of America’s ability to attract top global talent, particularly in science, technology, engineering and mathematics.
According to the American Immigration Council, H-1B visa holders fill a “critical need” in the US labour market, supporting industries that rely heavily on advanced technical skills. Their contribution goes far beyond filling vacancies.
H-1B workers and their families are estimated to add about R1.55 trillion to the US economy, contribute roughly R432 billion to federal payroll taxes, and generate close to R1.8 trillion in state and local tax revenue. These figures underline just how central skilled migration has been to American economic growth.
A Costly Policy Shift
Before the policy change, the average cost for US companies to sponsor a worker through the H-1B system ranged between about R36,000 and R90,000. The proposed jump to a R1.8 million fee would dramatically alter that equation.
Business groups and analysts warned that such a steep increase would discourage companies from hiring foreign specialists altogether, pushing skilled workers to seek opportunities elsewhere. Canada was quick to notice.
Within hours of Trump’s announcement, reports emerged that Ottawa was preparing a targeted strategy to attract precisely the talent that would now struggle to enter the United States.
Canada Moves Quickly
Speaking at the 2025 Global Progress Action Summit in the United Kingdom days after the announcement, Canadian Prime Minister Mark Carney confirmed that his government was already working on plans to make it easier for skilled foreign workers, particularly in the tech sector, to move to Canada.
He noted that fewer people would qualify for US visas under the new policy, despite being highly skilled, entrepreneurial and willing to relocate for work — conditions Canada is eager to capitalise on.
By December, Ottawa had unveiled a concrete response.
A Long-Term Investment in Talent
On 19 December, Canada announced a R21.6 billion, 12-year investment initiative aimed at recruiting and supporting more than 1,000 leading researchers and specialists. The programme, known as the Canada Global Impact+ Research Talent Initiative, is designed to attract world-class experts to Canadian institutions through several targeted funding streams.
Canadian Industry Minister Melanie Joly described the initiative as a strategic investment in science, innovation and academic freedom, particularly at a time when other countries are placing new barriers in the path of global research and talent mobility.
She said the programme was intended to strengthen Canada’s position as a scientific and economic leader within the G7, while supporting long-term prosperity and innovation.
In addition, Canada plans to introduce an accelerated pathway to permanent residency for existing US H-1B visa holders, further increasing its appeal to skilled professionals considering leaving the United States.
A Shift With Real Economic Consequences
Whether Canada’s strategy will deliver the full economic windfall remains to be seen. What is clear, however, is that Ottawa is acting decisively to attract talent that now appears less welcome in the United States.
For Canada, the potential rewards are substantial: increased innovation, stronger research institutions and a more competitive technology sector. For the United States, the risk is equally clear — that a policy intended to restrict migration could instead export talent, investment and long-term growth north of the border.
In the global competition for skills, small policy changes can have outsized effects. In this case, Canada appears ready to turn Washington’s misstep into a long-term advantage.
