WASHINGTON: President Donald Trump ordered on Friday that an annual $100,000 fee be added to H-1B skilled worker visas, creating potentially major repercussions for the tech industry where such permits are prolific.

The new US measure, which could likely face legal challenges, was announced alongside the introduction of a $1 million `gold card` residency programme that Trump had previewed months earlier.

`The main thing is, we`re going to have great people coming in, and they`re going to be paying,` Trump told reporters as he signed the orders in the Oval Office.

H-1B visas allow companies to sponsor foreign workers with specialised skills such as scientists, engineers, and computer programmers to work in the United States, initially for three years, but extendable to six years.

The United States awards 85,000 H-1B visas per year on a lottery system, with India accounting for around three-quarters of the recipients.

Large technology firms rely on Indian workers who either relocate to the United States or come and go between the two countries.

Tech entrepreneurs, including Trump`s former ally Elon Musk, have warned against targeting H-1B visas, saying that the United States does not have enough home-grown talent to fill important tech sector job vacancies. `All the big companies are on board,` said Commerce Secretary Howard Lutnick, who joined the president in the Oval Office.

Trump has had the H-1B pro-gramme in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify. The current iteration has become the latest move in the major immigration cracl
According to the latest order, the fee will be required for those seeking to enter the country beginning on Sunday, with the Homeland Security secretary able to exempt individuals, entire companies, or entire industries. The order expires in a year, though Trump can extend it.

The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under former president Joe Biden.

In contrast, the peak in rejections was recorded in 2018, during Tr ump`sfirst term in the White House.

The United States approved approximately 400,000 H-1B visas last year, two-thirds of which were renewals.

Trump also signed an order creating a new expedited pathway to US residency for people who pay $1 million, or for corporate sponsors to pay $2m. `I think it`s going to be tremendously successful,` Trump added.

South Korea said officials would `assess the impact of these measures on the advancement of (South Korean) companies and professional talents into the US market and engage in communication with the US`.

Hundreds of South Koreans were detained during a US immigration raid on a Hyundai-LG battery factory in Georgia earlier this month.-AFP