Prime Minister Mark Carney believes Canada has a unique opportunity to attract top global tech talent following the United States’ introduction of a $100,000 fee for temporary visas for specialized workers. This move by the U.S. is intended to regulate the inflow of highly skilled employees, but it could also make Canada a more appealing destination for professionals seeking affordable and accessible work opportunities.
However, the situation is complex. Historically, Canada’s tech sector has experienced significant migration of high-skilled talent to the U.S., drawn by lucrative salaries and established innovation hubs. Some industry experts caution that the hefty U.S. visa fee might inadvertently intensify this southbound migration before Canada can fully capitalize on the opportunity.
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What Is Happening in the U.S.?
Last month, U.S. President Donald Trump announced that new H-1B visa applications will now carry a $100,000 fee. These visas, which are valid for three years, are designed to attract workers with specialized skills and at least a bachelor’s degree.
H-1B visas are particularly important for the tech industry. According to Pew Research, about 60% of H-1B visas issued since 2012 have gone to professionals in computer-related fields.
By comparison, the original fee to apply for an H-1B visa was just $215, making this new charge a dramatic increase that could significantly affect international talent seeking opportunities in the United States.
Why Is This Happening?
The Trump administration argues that H-1B visas undercut American workers, as foreign employees often accept lower salaries than their U.S. counterparts.
“To take advantage of artificially low labor costs incentivized by the program, companies close their IT divisions, fire their American staff, and outsource IT jobs to lower-paid foreign workers,” the White House stated on September 19.
Supporting this concern, a 2020 report from the Economic Policy Institute found that 60% of H-1B visa positions certified by the U.S. Labor Department paid less than the median wage for the role, highlighting the potential financial disadvantage to domestic employees.
Opportunity for Canada?
Prime Minister Mark Carney said last Saturday that Canada could benefit from the higher U.S. H-1B visa fee by attracting international tech talent.
“Not as many of those people are going to get visas to the United States. And these are people with lots of skills that are enterprising, and they’re willing to move to work,” Carney told reporters in London. “So it’s an opportunity for Canada, and we’re going to take that into account. And we’ll have a clear offering on that.”
Carney noted, however, that any new admissions would be considered alongside plans to reduce both temporary and permanent immigration. Canada aims to bring non-permanent residents down to 5% of the population by 2027, compared with 7.1% as of April 1, 2025. The government is expected to release its updated immigration levels plan by the end of the month.
What Could Get in the Way?
Canadians aiming to work in the U.S. tech sector have another visa option: the TN visa, available through the Canada-United States-Mexico Agreement (CUSMA).
Benjamin Bergen, president of the Council of Canadian Innovators, noted that this alternative could make Canadians more attractive to American firms if the H-1B fee hike causes a domestic labor shortage. “Does the shift then go, rather than being from India or from China, that you’re now pulling people from Canadian firms or from Canadian universities? That’s something we’re heavily monitoring,” Bergen said.
Some U.S. tech companies also have a workaround: they can hire employees at a Canadian branch and then use a transfer visa to move them to the U.S. “They actually refer to Vancouver as Ellis Island. You had to spend a year in Vancouver, then you could be shipped down,” Bergen explained.
Angus Lockhart, senior policy analyst at the Dais think tank at Toronto Metropolitan University, said U.S. tech jobs typically pay about 46% more than comparable Canadian positions. “Canadian tech workers and graduates have a strong incentive to move south and earn substantially more than they could here,” he said.
Lockhart added that highly skilled Canadians are more likely to pursue an H-1B visa rather than a TN visa, as the H-1B allows for longer-term residence and career opportunities in the U.S.
What Could Canada Do?
Despite strong competition from the U.S., Canada continues to attract international tech talent. High-tech, science, and engineering firms here employ more immigrants than other sectors. Government data shows that 35% of Canada’s computer programmers are foreign-born, compared with roughly 26% of the total workforce.
Benjamin Bergen, president of the Council of Canadian Innovators, said Canada needs to create an environment where tech companies and startups can thrive to lure talent away from the U.S. “It can’t just be a knee-jerk reaction, thinking, ‘Oh, the Americans did something dumb, so we benefit.’ That’s not how it works,” he said.
Bergen added that Canada should better integrate homegrown tech products into public services and bureaucracy—a strategy that has worked in countries like Denmark, Israel, Japan, Korea, and the U.S. “Canada does a poor job at procuring from its own vendors. A whole-of-government approach is needed to support the ecosystem,” he said.
Angus Lockhart, senior policy analyst at the Dais think tank, noted that while top-tier international talent will remain in high demand, the $100,000 H-1B visa fee may deter employers from hiring workers at the lower end of the tech pay scale. “No company will hesitate over a $100,000 fee for a $5 million hire, but for tech workers making in the low six figures, that fee becomes a real barrier,” he said.
Frequently Asked Questions
What is the new U.S. H-1B visa fee?
The Trump administration introduced a $100,000 fee for new H-1B visa applications, up from the original $215.
Who is affected by the H-1B visa fee?
The fee primarily affects foreign workers with specialized skills, including those in computer-related fields, seeking temporary work in the U.S.
Why did the U.S. increase the H-1B visa fee?
The administration argues that foreign workers often accept lower salaries, which can undercut American employees and incentivize outsourcing.
How could this be an opportunity for Canada?
Canada may attract international tech talent that is deterred by the high U.S. visa fee, particularly in high-tech, science, and engineering sectors.
Are there challenges for Canada in attracting talent?
Yes. Canadian workers may still prefer U.S. jobs due to higher salaries, and American firms can hire Canadians via TN or transfer visas, limiting Canada’s advantage.
What can Canada do to attract more tech talent?
Experts suggest creating a supportive environment for startups, integrating Canadian-made tech into public services, and improving government procurement to strengthen the tech ecosystem.
Will the fee affect all tech workers?
Top-tier talent will still be in high demand, but the $100,000 fee could deter employers from hiring mid-level tech workers in the lower six-figure salary range.
Conclusion
The U.S. H-1B visa fee hike presents both challenges and opportunities. While it may deter some foreign talent from seeking employment south of the border, Canada has a chance to position itself as a competitive destination for skilled tech workers. Success will depend on more than just benefiting from U.S. policy changes—it requires creating a strong ecosystem that supports startups, integrates Canadian technology into public services, and offers attractive opportunities for international talent.
