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In business dealings, Donald Trump has ignored 'Buy American' ethos

In business dealings, Donald Trump has ignored 'Buy American' ethos

US President Donald Trump on 18 April 2017 signed an executive order named "Buy American, Hire American".

Trump signed the "Buy America, Hire America" order on Tuesday night during a visit to a tool factory in the USA state of Wisconsin, reported CNN. Earlier on Tuesday, Trump ordered a review of government procurement rules favoring American companies to see if they are actually benefiting, especially the US steel industry.

Administration officials said the order also seeks to strengthen existing requirements that American-made products be used in certain federal construction projects, as well as in various federal transportation grant-funded projects.

IT trade body Nasscom has said that US President Donald Trump's executive order on seeking proposals to reform the H-1B visa system is unlikely to have any immediate impact on the country's technology industry and termed this as a persistent campaign to discredit the sector.

A senior administration official explained the rationale behind the change by saying many of those visas going to contract workers from overseas force wages down in the USA or completely wipe out positions for Americans. As ordered by the Congress, the US Citizenship and Immigration Services (USCIS) consistently issued 65,000 H-1B visas and another 20,000 to those candidates having aces and higher degrees from a US educational organization.

Overall, IT and consulting company Infosys holds the largest number of H-1B visas, with almost a third of the total visas issues, according to a site that tracks visas issued. Trump also promised to either replace or modify the current lottery-based selection process for H-1B visas.

Trump's executive order directs federal agencies to crack down on fraud and abuse of the program and generate more reports on it, Repko says.

"Ive introduced bipartisan legislation with Senator Durbin to address these problems, and Ive expressed to President Trump the need to take action to restore the integrity in the H-1B Program", Grassley said. "We do know that numerous companies that have this business model are the ones that are paying the lowest wages to H-1Bs".

"A very big share of the visas are actually going to IT outsourcing companies", Costa said.

Critics argue that if Trump raised his wages, Mar-a-Lago jobs would be attractive to workers from countries other than Haiti and Romania.

The use of H-1B visas by American companies is commonplace in the technology industry.

Indian nationals are the largest group of recipients of the H-1B visas issued each year.

"There's likely a greater reluctance on the part of some companies that know they've been using the program to undercut American workers because they believe there's going to be a tightening up", Stein told the Washington Free Beacon.


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