Cracks in Trump Camp: H-1B Visas, China as Points of Contention

4 January 2025 Tridivesh Singh Maini

Differences within the Trump camp regarding the approach towards work visas for overseas skilled workers have come to the fore. Elon Musk and David Sacks were unequivocal in their defence of Sriram Krishnan, emphasising that Sriram Krishnan emphasised attracting talent and an immigration policy focused on merit. However, Trump’s former advisor Steve Bannon lashed out at Elon Musk and the H-1B program. Even on the incoming Trump administration’s China policy, there could be a divide within the Trump administration. While Trump has appointed Marco Rubio as Secretary of State who is a known ‘China hawk’, Musk who has business interests would have a different approach.

In recent weeks, differences within the Trump camp regarding the approach towards work visas for overseas skilled workers came to the fore. First, the appointment of Sriram Krishnan as Senior Advisor Artificial Intelligence (AI) evoked strong reactions from Making America Great Again (MAGA) supporters due to Sriram Krishnan’s perceptibly “pro-immigration” stance and his vocal support for reform of H-1B visas and Green Cards. Chennai-born Sriram Krishnan – who began his career with Microsoft and worked with several other tech companies – had pushed for reform of the existing H-1B and Green Card system to encourage innovation, entrepreneurship and economic growth. Laura Loomer, a far-right activist and fervent supporter of Trump was amongst those who had criticised Sriram Krishnan, though she apologized later.

Several members of the Trump team including David Sacks — incoming White House and Artificial Intelligence (AI) along with Elon Musk, CEO of Tesla, owner of X and incoming co-head of Department of Government Efficiency (DOGE), with Vivek Ramaswamy, came to the Chennai based techie’s defence. Both were unequivocal in their defence of Sriram Krishnan, emphasising that Sriram Krishnan emphasised attracting talent and an immigration policy focused on merit. While Krishnan was born and educated in India, Sacks and Elon Musk were born in South Africa. It would be pertinent to point out here that Trump categorically said that the H-1B program was here to stay, and also said: “I’ve always liked the visas, I have always been in favour of the visas. That’s why we have them”

The H1B visa was created in 1990 and enables US employers to provide the same to individuals, with special skills and qualifications that cannot be found in the American force, for a period of three years (this can be extended up to six years).

Trump categorically said that the H-1B program was here to stay, and also said: “I’ve always liked the visas, I have always been in favour of the visas. That’s why we have them”

Also Read: US Universities Caution International Students Before Trump’s Inauguration

During his earlier stint (2017-2021) as US President, Trump introduced several changes to policies about H-1B’s and there was a drop in H-1B approvals during this period – in the past, Trump has been a strong critic of H-1B visas. During the Biden presidency – from 2022 onwards — there was again a drop in rejection rates of H-1B Visas. Indian nationals account for an overwhelming percentage of H-1B visas issued every year. The H-1B visa is a stepping stone towards US residency and ultimately citizenship.

Trump’s former advisor Steve Bannon lashed out at Elon Musk and the H-1B program. Bannon criticised Musk and dubbed several other individuals in the incoming Trump administration as “new converts” – during the course of his podcast. Bannon while warning Musk said that he and other MAGA supporters would “rip your face off” unless Musk does not change his approach towards visas for foreign workers – which results in snatching jobs, especially in the tech industry, from deserving Americans.

South Africa-born Musk, in defence of H-1B Visas, had said: “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H-1B,”

While Musk did revise his stance saying that the H1B system was broken, Bannon said that reform of H-1B was possible if the system would stay. Musk had suggested that steps such as raising the minimum salary requirement for an H-1B visa were needed so that it became more expensive to hire foreign workers.

MAGA supporters like Bannon and Laura Loomer may view immigration from a narrow perspective which seeks to impress a particular group of Trump supporters which is of the view that inward-looking immigration policies are essential components of the America first policy.

Divide within the incoming administration

The divide within the incoming US administration is likely to remain. While there will be those like Musk who will view issues including immigration from a transactional business perspective, others like Sriram Krishnan may genuinely believe in a reform of the immigration system based on merit and finally, MAGA supporters like Bannon and Laura Loomer may view immigration from a narrow perspective which seeks to impress a particular group of Trump supporters which is of the view that inward-looking immigration policies are essential components of the America first policy.

Also Read: Golden Visas, H-1B, Restrictionism: The Immigration Crossroads in a Trumpist World

It is not just immigration. Even on the incoming Trump administration’s China policy, there could be a divide within the Trump administration. While Trump has appointed Marco Rubio as Secretary of State who is a known ‘China hawk’, Musk who has business interests would have a different approach. In US security circles, there are concerns that Musk’s business interests in China could compromise US national security.

Apart from Trump’s unpredictability on serious policy issues, it would be interesting to see how he reconciles contradictions in his team on key policy issues.

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