Trump’s comments have sent ripples through Silicon Valley and tech outsourcing hubs like India. His administration has stepped up pressure on US companies to “put America first” and reduce reliance on H-1B visa holders, many of whom come from India and China.
Trump slams outsourcing: “Put America first”
Addressing the summit, Trump said, “Many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India, and stashing profits in Ireland.” His remarks highlighted a long-standing criticism that American companies enjoy local advantages but move operations abroad to cut costs.
The US president was clear about what he expected. “We need US technology companies to be all in for America. We want you to put America first,” he said, signalling policy shifts aimed at curbing offshoring practices and pushing for local hiring.
According to Trump, these firms are profiting off US freedom but not paying it back in employment terms. His administration is now looking at both public pressure and legislative tools to push companies toward more domestic hiring.
JD Vance goes after Microsoft’s layoffs and visa use
Vice President JD Vance followed up with a sharp jab of his own, this time, directly targeting Microsoft. Speaking at a Hill and Valley Forum event, Vance said it didn’t make sense for tech firms to lay off American workers while applying for foreign visa hires.
“You see some big tech companies where they’ll lay off 9,000 workers, and then they’ll apply for a bunch of overseas visas. And I sort of wonder; that doesn’t totally make sense to me,” Vance said.
He didn’t hold back. “That displacement and that math worries me a bit… I don’t want companies to fire 9,000 American workers and then to go and say, ‘We can’t find workers here in America.’ That’s a bullshit story,” he said at the forum, drawing applause.
The remark clearly referenced recent waves of layoffs in the tech sector, including Microsoft, which reportedly trimmed its workforce earlier this year even as it continued filing for thousands of H-1B visa slots.
H-1B visa scrutiny tightens
At the heart of the political backlash is the H-1B visa program, which allows US companies to hire foreign workers in specialised roles. Indian professionals have been the largest beneficiaries for years, especially in sectors like software, finance, and research.
In 2024, tech companies including Amazon, Meta, Google, and Tesla collectively secured thousands of these visas. Microsoft, too, received a significant number despite job cuts at home. The contrast is fuelling criticism from both sides of the US political divide.
The visa system has long been criticised for allowing companies to replace domestic workers with cheaper foreign labour. And now, with Trump and Vance turning the spotlight on it, the tech industry could be in for a rough ride ahead of the 2026 elections.
What it means for Indian IT professionals
India has long been a key outsourcing and talent destination for American tech companies. With this new political push, Indian workers on H-1B visas could face tighter scrutiny and fewer job offers in future cycles.
It’s still unclear if any formal changes to visa policy are underway, but public comments from the US president and vice president often shape future decisions. If tech firms start backing away from overseas hiring, India’s IT talent pipeline could feel the squeeze.