Highlight
Wealthy investors and corporations are scrambling for legal and financial guidance after Donald Trump announced plans to replace the EB-5 visa with a new, costlier “gold card” program. The Big Four consultancy firms are seeing a surge in queries about the impact on existing and future investments, with concerns over higher capital requirements and potential visa revocations.
What is Changing?
| Visa Type | Investment Requirement | Benefits |
|---|---|---|
| Current EB-5 Visa | $1.05 million (₹9.17 crore) or $800,000 (₹6.99 crore) for distressed sectors | Permanent residency, green card for investors and dependents |
| Proposed ‘Gold Card’ Visa | $5 million (₹43.7 crore) | All benefits of EB-5 but at a much higher cost |
- Existing EB-5 holders worry about revocation or increased scrutiny.
- Future applicants may have to commit significantly higher investments.
Why Are HNIs Concerned?
- Potential cancellation or reassessment of their EB-5 visas under new rules.
- Uncertainty about the need to convert to a ‘gold card’ visa.
- Increased capital requirements could delay or derail immigration plans.
Corporate Concerns: H-1B and Tariffs
H-1B visa scrutiny:
- Mid-sized Indian firms employing top executives in the U.S. under H-1B are worried about stricter interpretations of “specialty operations”.
- Fear of visa cancellations or stricter eligibility rules.
Tariff Fears for Indian Companies:
- 25% tariffs on Canadian and Mexican goods may impact Indian firms with supply chains in these countries.
- Companies fear they could be classified as permanent establishments (PEs) in Canada/Mexico, leading to higher tax and regulatory scrutiny.
- 10% additional tariffs on Chinese imports also pose risks for Indian companies operating in global supply chains.
What’s Next?
- Uncertainty remains as legal battles could delay or block Trump’s plans.
- Experts advise waiting for more clarity rather than making hasty investment decisions.
- Judicial interventions are possible, as seen in past Trump immigration policies.
Bottom Line
Trump’s proposed immigration overhaul and tariff policies are causing uncertainty among HNIs and Indian businesses with U.S. exposure. With visa policies in flux and higher investment barriers, wealthy investors and companies must reassess their strategies before making major financial commitments.
