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Written by Kimaya Gupte 09/30/2025.
Hi York!
As an international student who, prior to my move, had absolutely no reason to have any knowledge about Canada or Canadian politics, I decided to force myself to become educated by researching and writing an article about it! Today’s topic is a little random, but hey, it’s a start.
On Friday, 19th September, U.S President Donald Trump announced an executive order to increase the fee of the H-1B visa from its previous price range of between $2,000 and $5,000, to a whopping $100,000. This policy came into effect the following Sunday. So, what does this mean for Canada?
The H-1B visa is a visa category that allows companies to pay for the entry of highly talented and skilled foreign employees into the U.S. Generally, these individuals work in industries such as medicine, engineering, mathematics, technology, finance, etc. and fill positions for which the number of domestic workers may be limited.
Trump’s new executive order aims to put pressure on companies to hire American workers over international ones, theoretically creating more jobs for citizens. However, data from the American Immigration Council suggests that foreign workers actually contribute a lot to economic growth and don’t take jobs from domestic workers due to differences in skill sets.
From my research, I’ve gathered that the policy change could mean two major things for Canada. Most Canadians working in the US are not holders of the H-1B, but of the TN visa, which are only held by citizens of Mexico and Canada under the United States–Mexico–Canada agreement, meaning immigrants from these nations are not affected by the price increase. So, if American employers are unable to find enough domestic workers and cannot spend the extra money to hire from outside the continent, they may focus on hiring more Canadians to bypass the fees. This could be dangerous for Canada, especially in industries where there are already labour shortages, like healthcare, where both nations are struggling to fill open positions. It creates brain drain, a phenomenon in which skilled workers leave their home country in search of better opportunities elsewhere, creating economic stagnation in the region that they leave behind.
However, Prime Minister Mark Carney calls this change “an opportunity for Canada” as he suggests that the nation is working on a plan to attract international talent that would have otherwise sought work south of the border. If Canada were to bring in 120,000 of these visa holders earning a salary of $200,000, it could generate up to $30 billion in total GDP economic activity, growing the economy by more than 1%. For foreign workers who had planned to bring their talent to the US, Canada may just be a perfect alternative. Geographically, the proximity to and shared timezone with the States creates ease for interacting with American clients, and Canada’s high standard of living makes it a desirable destination to make a home.
So, will this new executive order ultimately pose a threat to Canada’s economy, or will the nation be able successfully spin it to their advantage?
We will soon find out!
Kimaya.
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