Washington, September 22 (IANS) As the Donald Trump administration restricts H-1B visas that overwhelmingly impact Indian tech workers, the US media on Monday reported that the visa crackdown has added a “fresh blow” to the US-India ties and created “new hurdles” for a speedy trade deal.

“Trump’s $100,000 fee for new H-1B applications will predominantly affect Indians, who’ve made up more than 70 per cent of the visas in the past. The US President’s order has rattled India’s $280 billion tech services industry, threatening their business outsourcing models and putting thousands of jobs at risk,” a Bloomberg report said.

It quoted an economist as saying that the trade talks are “getting increasingly intertwined with geopolitical objectives,” complicating the “ability to resolve frictions.”

US President Donald Trump signed a proclamation on Friday to significantly curtail the H-1B visa programme, announcing a $100,000 fee for each new application.

The proclamation caused immense confusion over the weekend as it seemed to suggest that the order would impact the current H-1B visa holders who may face hurdles in returning to the United States.

The White House issued a clarification to IANS on Saturday, saying that this is a “one-time fee” that applies only to new visas and not renewals or current visa holders.

“This is a one-time fee that applies only to the petition. It ONLY applies to new visas, not renewals or current visa holders. It will first apply in the next upcoming lottery cycle,” said a White House official.

A White House Spokesperson also clarified that the policy would discourage companies from “spamming” the system.

“President Trump promised to put American workers first, and this common sense action does just that by discouraging companies from spamming the system and driving down wages. It also gives certainty to American businesses who actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system,” said Taylor Rogers, the White House Spokeswoman.

The proclamation comes as Commerce and Industry Minister Piyush Goyal is in Washington to meet senior Trump administration officials to negotiate India-US trade agreement. External Affairs Minister (EAM) S Jaishankar is also meeting US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly (UNGA) meetings.

–IANS

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