Star investor Cathie Wood acknowledged that the Trump administration’s abrupt announcement of a high-priced fee for H-1B visas was a shock, stating, “The suddenness, the Friday announcement and the lack of clarity threw a lot of people, including us.” However, the ARK Invest CEO explained in a recent interview with Bloomberg, the controversial policy is not a long-term deterrent to attracting global talent, but a temporary and aggressive negotiating tactic aimed primarily at India.
Wood posited that the move is part of a “much broader negotiation,” particularly with India, that has not yet concluded. She described the policy directly as “punishment for India,” suggesting that any negative impact on the U.S. is an acceptable “side effect that will change” once a deal is reached. The initial confusion has since been clarified, with the new fee structure applying only to new H-1B visas, a detail Wood believes is crucial. She expressed confidence that U.S. tech executives understand this move is a piece of a larger diplomatic chess game.
