U.S. President Donald Trump’s new $100,000-a-year H-1B visa could have an unintended consequence: boosting Canada’s technology sector.
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For years, Canada has watched as highly-skilled workers in industries such as technology and healthcare have fled to the U.S., taking lucrative salaries and tax revenue with them. But now, some technology executives in America are warning that a reversal could happen after President Trump signed an executive order that forces technology companies to pay $100,000-a-year to issue a visa to foreign workers.
“Cities like Vancouver or Toronto will thrive instead of American cities,” wrote Garry Tan, CEO of famed San Francisco start-up incubator Y Combinator, on social media. Trump’s new visa policy is a “massive gift to every overseas tech hub,” but especially neighboring Canada where most cities are located within 100 miles of the U.S. border.
Northern Exposure
Major U.S. technology companies such as Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) already have offices and significant workforces in major Canadian cities. Those companies could accelerate hiring in Canada to skirt the U.S. visa, while also paying lower salaries and benefits. Companies in Canada don’t typically pay employee healthcare insurance as it is covered by the government.
Amazon had more than 8,500 corporate and technology employees at its hubs in Vancouver and Toronto at the end of 2024, according to the company. Microsoft currently has nearly 3,000 staff working on various projects in Vancouver, which is a two hour drive to its global headquarters in Seattle, Washington.
Other technology giants such as Meta Platforms (META) have recently opened artificial intelligence (AI) labs in Canadian cities such as Montreal. Analysts say that a growing number of technology companies could position workers in Canada to avoid the H-1B visa costs and have them visit the U.S. as needed for meetings, training, and to collaborate, saving money in the process.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 46 Wall Street analysts. That rating is based on 45 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $264.51 implies 15.29% upside from current levels.
