President Donald J. Trump, the 47th President of the United States, appears to be softening his stance on one of his most closely watched immigration policies, underscoring the importance of H-1B visas for specialized foreign labor. The remarks come just months after his administration enacted stricter rules and higher visa fees aimed at reducing the number of foreign professionals entering the U.S.

In a recent interview with Fox News’ Laura Ingraham, President Trump reiterated that while an influx of foreign workers could suppress wages for American employees, the U.S. continues to face significant skill shortages in areas such as technology, engineering, and advanced manufacturing.

“You don’t have certain talents, and people have to learn,” President Trump said. “You can’t just say a country is coming in, going to invest $10 billion to build a plant and take people off an unemployment line who haven’t worked in five years and they’re going to start making their missiles. It doesn’t work that way.”

Back in September, the White House introduced a $100,000 one-time fee on H-1B visas—permits typically used by high-skilled foreign professionals, particularly in the tech industry. Critics, including Y Combinator CEO Gary Tan, warned that the steep fee could “kneecap” startups and smaller businesses that rely heavily on international talent.

A 2020 National Bureau of Economic Research study found that startups with higher concentrations of H-1B workers were more likely to achieve an IPO or acquisition, as well as secure more funding and patents. Despite the new restrictions, nearly 400,000 H-1B visas were approved in fiscal 2024, nearly double the total from 2020. Industry leaders such as Elon Musk have continued to champion the visa program as a key factor in keeping the U.S. competitive globally.

Trump Administration’s H-1B Visa Fee and Economic Impact

When President Trump signed the proclamation implementing the H-1B visa fee, Commerce Secretary Howard Lutnick defended the move, arguing that issuing large numbers of H-1B visas—typically awarded via lottery and requiring at least a bachelor’s degree—was not economically efficient for the U.S.

“If you’re going to train people, you’re going to train Americans,” Lutnick told reporters. “If you have a very sophisticated engineer and you want to bring them in…then you can pay $100,000 a year for your H-1B visa.”

However, many economists have warned that the administration’s tighter immigration policies could backfire. Analysts project that a significant reduction in foreign workers could lead to negative net migration, shrinking the U.S. labor force and curbing consumer spending—both of which could weaken long-term GDP growth.

A recent study by the National Foundation for American Policy estimated that President Trump’s immigration restrictions could reduce the U.S. workforce by 15.7 million workers and cut GDP growth by nearly one-third over the next decade.

The White House did not immediately respond to Fortune’s request for comment.

Trump Addresses Georgia Hyundai Plant ICE Raid

President Trump also reflected on recent Immigration and Customs Enforcement (ICE) operations, suggesting that some enforcement actions may have gone too far. His comments followed a major ICE raid at a Hyundai manufacturing plant in Georgia, which took place only weeks after the H-1B fee proclamation.

The raid—carried out under Trump’s “One Big Beautiful Bill”, which increased ICE funding by $30 billion—led to the detention of 475 workers, most of them South Korean nationals. According to ICE officials, many of the workers allegedly overstayed their visas or held permits that did not authorize manual labor.

Following the operation, Hyundai CEO José Muñoz reported that the raid delayed the plant’s opening by two to three months. Earlier this year, Hyundai had announced plans to invest $26 billion in U.S. manufacturing, underscoring the administration’s challenge in balancing immigration enforcement with economic growth and foreign investment.