Canada plans to attract global tech talent as US hikes H-1B visa fees

Canada is planning to seize an opportunity to draw top international tech talent following a major shake-up in the US immigration system. The move came days after US President Donald Trump’s move to impose a $100,000 fee on new H-1B visa applications is expected to curb the inflow of skilled foreign workers to the country.

Industry experts say this creates a strategic opening for Canada to position itself as a stable, cost-effective alternative for highly qualified professionals seeking opportunities in technology and innovation sectors.

Speaking in New York, Prime Minister Mark Carney said that Canada’s potential to retain and attract highly skilled graduates in fields such as artificial intelligence, quantum computing and other tech disciplines.

“Most of them go to the United States,” Carney said. “I understand you’re changing your visa policy here, so we’re going to hang on to a few of those.” He indicated that the Canadian government would soon unveil a structured offering aimed at these professionals.

The H-1B visa fee hike has sent ripples through the US tech industry, particularly affecting startups and smaller firms reliant on overseas talent. Industry insiders have described the fee as a “toll booth” that will make hiring in the US cost-prohibitive, while Canadian cities like Toronto and Vancouver could emerge as attractive alternatives.

American tech giants already have massive operations in Canada: Amazon employs over 8,500 people across Vancouver and Toronto, Microsoft has 2,700 staff in its Vancouver development hub and Alphabet maintains offices across multiple Canadian cities.

The H-1B visa fee hike has raised concerns across the US tech sector, particularly for companies that rely on foreign professionals to fill specialised roles. Experts argue that the higher cost could make it more difficult for startups and smaller firms to hire overseas talent.

Meanwhile, Canada, along with other countries such as Germany and the UK, is preparing to welcome professionals affected by these changes, highlighting more predictable immigration rules and supportive policies for skilled workers.

Canada’s existing visa programmes already provide pathways for tech talent. The country has been proactively positioning itself as an attractive destination for international professionals by offering long-term work permits, simplified immigration procedures and opportunities to live and work in tech hubs such as Toronto, Vancouver and Montreal. The US fee hike is likely to accelerate these initiatives and enhance Canada’s competitive edge in the global talent market.

Industry observers say the move could benefit Canada’s technology ecosystem by filling gaps in sectors such as software development, AI, and other emerging technologies. With the US raising barriers to skilled immigration, Canadian firms may find it easier to recruit experienced professionals from countries like India, which historically contribute a large share of H-1B visa holders.

Canada has previously tested strategies to attract frustrated H-1B holders. In 2023, it offered three-year work permits to US visa holders, with a cap of 10,000 applications being filled within 48 hours, demonstrating high demand.

Experts now suggest reviving such programs, potentially linking them to the creation of new jobs within Canadian firms, to balance workforce needs with employment and infrastructure pressures.

Domestic talent alone cannot meet Canada’s growing tech and healthcare demands. With a fertility rate of just 1.3, the country faces a chronic shortage of skilled workers. Virginia Machiavello, CEO of Machiavello Consulting Limited, noted that commercialising Canadian resources and expanding manufacturing will require an expanded workforce, making immigration policies pivotal to economic growth.

While salaries in the US remain higher, the median tech worker earns 46% more there than in Canada. Canada’s stability, predictable immigration rules and evolving incentives are likely to make it an appealing destination for Indian and global tech professionals.

Industry insiders believe that with targeted policies and competitive opportunities, Canada could capture a significant share of the talent that might otherwise have headed to the US.

With the US H-1B landscape undergoing a dramatic shift, Canada is seizing a historic chance to position itself as a hub for global tech talent, leveraging both its existing infrastructure and policy agility to attract skilled professionals seeking more predictable and cost-effective alternatives.