Elon Musk on H-1B Visas: Fix the System, Not End It

Elon Musk discusses H-1B abuses and tariffs on a tech podcast, urging reforms that curb gaming while preserving the program, as US-India trade talks progress.

Tech magnate Elon Musk sat down with Indian entrepreneur Nikhil Kamath for a conversation about visas, tariffs, and the shape of US-India trade. The discussion highlighted his stance that reforms can curb abuse without scrapping the H-1B program.

H-1B reforms, not abolition

Musk acknowledged the important contribution of Indian skilled workers to the U.S. economy, while calling out widespread misuse of the H-1B visa system. He argued that policymakers should target loopholes and curb manipulation rather than dismantle the program.

In September, the Trump administration introduced a $100,000 filing fee for H-1B petitions, a move that drew concern from Indian workers and their employers.

What the data shows

New analysis from the National Foundation for American Policy shows a notable decline in approvals for Indian outsourcing firms. In the current fiscal year, the top seven Indian companies together received 4,573 initial H-1B petitions, about 70% fewer than in 2015 and roughly 37% below 2024 levels.

Officials warn that tighter rules could lead to higher denial rates and complicate hiring for employers who rely on these roles.

Tariffs and trade talk

Musk also touched on tariffs, saying they can distort markets even if they are central to policy goals. He noted he had urged President Trump against broad tariff increases, though the President signaled strong support for tariffs.

Earlier this year, the United States imposed high duties on Indian goods, including a 25% surcharge on purchases of Russian oil. Negotiations for a broader US-India trade pact continue, with hopes of a deal by the end of the year.

The road ahead

Analysts say the best path is targeted reform that reduces abuse without blocking access to skilled labor. Both sides remain engaged in talks to deepen economic ties through a formal trade agreement.

Expert comment

Expert: A policy analyst notes that enforcing tighter oversight and clearer rules can curb misuse while preserving opportunity for skilled workers.

Short summary

The conversation centers on balancing talent mobility with system integrity, with Musk advocating reform rather than abolition. Data point to a sharp drop in H-1B approvals for Indian outsourcing firms, signaling the impact of policy changes. The discussion emphasizes targeted fixes and ongoing trade talks as the broader policy direction evolves.