With the recent re-election of Donald Trump, U.S. companies that rely on foreign talent are bracing for the return of restrictive “America First” immigration policies. As businesses anticipate challenges in securing and retaining international talent, many are turning their focus northward, to Canada, as a promising alternative.

This article explores the impact of past and expected U.S. immigration policies, Canada’s evolving stance as a gateway to North America, and the proactive strategies companies can adopt to secure a stable, talented workforce amid shifting regulations.

Challenges for U.S. Employers Under “America First” Policies

Trump’s previous administration marked a turning point in U.S. immigration, with sweeping policies aimed at limiting foreign worker programs, increasing compliance demands, and prioritizing domestic labor.

These changes created substantial challenges for companies with global talent needs, particularly in sectors like technology, healthcare, and engineering.

Understanding the impacts of past “America First” policies sheds light on the hurdles that U.S.-based employers are likely to encounter:

1. Intense Visa Scrutiny and Lower Approval Rates: During Trump’s last term, employment-based visas—especially H-1B and L-1—came under stricter scrutiny. Applications faced new levels of examination around job duties, qualifications, and wages, leading to more denials and longer processing times. This unpredictability complicated workforce planning, leaving businesses without key talent and operational continuity.

2. Rising Prevailing Wages: Under Trump, the minimum wage thresholds for H-1B, H-1B1, E-3, and PERM programs were raised to prevent wage suppression by foreign workers. Employers had to weigh the costs of increasing salaries to meet these requirements, re-evaluating the feasibility of hiring foreign talent. This was particularly challenging for cost-sensitive industries that depend on skilled international workers.

3. Travel Restrictions and Entry Bans: Travel bans targeting several countries created logistical and morale challenges for employees, particularly those from the Middle East, Africa, and Venezuela. Uncertainty over re-entry prevented foreign employees from traveling, limiting business mobility and causing disruptions. Employers were forced to advise foreign talent to avoid non-essential travel, while some businesses turned to remote work solutions to bridge these gaps.

4. Heightened Compliance Audits and Worksite Enforcement: Under Trump’s policies, worksite compliance audits increased as DHS and ICE intensified enforcement. Employers were required to prioritize Form I-9 and E-Verify compliance to avoid penalties, leading to a need for regular audits and legal consultation. Companies felt the pressure of potential penalties, prompting the need for specialized in-house immigration teams or frequent legal support.

5. Limited Options for Dependents: The last administration also impacted dependents, particularly spouses of H-1B visa holders, who saw work authorizations restricted. This policy deterred many foreign professionals from seeking U.S. roles, as other countries offered more flexibility for family

members.

6. Backlogs in Green Card Processing: Trump’s policies led to severe green card backlogs, especially affecting Indian and Chinese nationals in employment-based categories. Many employees faced prolonged waiting periods, leading to challenges in retaining talent who wanted stable residency options. Employers struggled to keep highly skilled workers in the face of indefinite delays.

Canada: A Strategic Alternative and Talent Hub for North America

Amid these U.S. challenges, Canada has become an increasingly attractive destination for companies needing access to foreign talent without the uncertainties of U.S. policy.

Canada’s immigration framework, while recently updated, provides stability and flexibility that enable companies to recruit and retain international talent with greater ease. Here’s why Canada is emerging as a North American gateway for foreign talent:

1. Canada as an Access Point to North American Markets: By establishing operations in Canada, U.S.-based businesses gain reliable access to North American markets while leveraging Canada’s supportive immigration framework. Canadian hubs like Toronto, Vancouver, and Montreal offer infrastructure, skilled labor pools, and proximity to the U.S., making it a strategic alternative for foreign workforce operations.

2. Fast-Track Programs such as the Global Talent Stream (GTS): Canada’s Global Talent Stream program provides an expedited process to bring in high-skilled workers, particularly in technology and healthcare. With processing times as short as two weeks, GTS is a valuable resource for companies that need critical talent quickly, without the extended delays typical of U.S. visa programs.

3. Intra-Company Transfer (ICT) Program with Updated Requirements: Canada’s ICT program facilitates the relocation of employees to Canadian subsidiaries, offering an alternative for intra-company mobility. However, recent updates mean that companies must meet additional obligations, such as direct and ongoing supervision of ICT employees by Canadian management and maintaining a physical office premise in Canada. Remote work considerations also require that foreign workers be fully integrated into the Canadian operations to meet ICT standards. These requirements make it essential for companies to assess and prepare their Canadian presence to ensure compliance with ICT standards.

Adapting to Canada’s Recent Immigration Changes

While Canada remains an appealing destination, recent policy updates include new quotas and requirements that businesses need to manage strategically:

1. Early Planning for Capped Programs: Canada’s new immigration plan includes caps on foreign worker categories, requiring companies to submit applications early to avoid missed quotas. For industries in high demand, such as technology, early applications are critical to accessing the required talent pool without delays.

2. Compliance with ICT Operational Instructions: With Canada’s revised ICT guidelines, companies must demonstrate a significant international presence and provide oversight of transferred employees by Canadian managers. This includes establishing a physical office in Canada and ensuring that foreign workers are integrated into the Canadian business environment, particularly if working remotely. These requirements demand structured Canadian operations to fully utilize ICT pathways.

3. Sector-Specific Opportunities in Canadian Immigration: Canada’s plan prioritizes sectors like healthcare, technology, and engineering. By aligning talent acquisition with these targeted sectors, companies can benefit from faster immigration processing and more accessible work permits. This sector-specific alignment supports quicker workforce integration, particularly for roles aligned with Canada’s long-term economic needs.

Conclusion: Navigating Immigration Policy in a Politically Charged Landscape

The recent election reinforces the political nature of immigration policy and its influence on public sentiment and business strategy. Immigration remains a central topic in elections, and as policies shift, companies must adapt swiftly to avoid disruption. For U.S.-based employers, Canada offers a stable and accessible alternative to navigating North American talent needs, but Canada’s new policies also require early planning and compliance with evolving requirements.

In this politically charged environment, companies that prepare proactively with strategic alternatives, such as Canadian operations, can better mitigate the risks of U.S. restrictions and position themselves for long-term success. By embracing cross-border workforce planning and aligning with stable immigration pathways, businesses can secure critical international talent and protect against future disruptions.

The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.