Washington DC - President Donald Trump on Friday ordered an annual $100,000 fee be added to H-1B skilled worker visas, creating potentially major repercussions for the tech industry where such permits are prolific.

The new measure, which could likely face legal challenges, was announced alongside the introduction of a $1 million "gold card" residency program that Trump had previewed months earlier.

"The main thing is, we're going to have great people coming in, and they're going to be paying," Trump told reporters as he signed the orders in the Oval Office.

H-1B visas allow companies to sponsor foreign workers with specialized skills – such as scientists, engineers, and computer programmers – to work in the US, initially for three years, but extendable to six years.

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Some 85,000 H-1B visas are awarded per year on a lottery system, with India accounting for around three-quarters of the recipients.

Large technology firms rely on Indian workers who either relocate to the US or come and go between the two countries.

Tech entrepreneurs, including Trump's former ally Elon Musk, have warned against targeting H-1B visas, saying that the country does not have enough homegrown talent to fill important tech sector job vacancies.

"All the big companies are on board," said Commerce Secretary Howard Lutnick, who joined Trump in the Oval Office.

Trump has had the H-1B program in his sights since his first term in office, but faced court challenges to his earlier approach, which targeted the types of jobs that qualify.

According to Trump's order, the fee will be required for those seeking to enter the country beginning Sunday, with the Homeland Security secretary able to exempt individuals, entire companies, or entire industries.

The order expires in a year, though Trump can extend it.

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The number of H-1B visa applications has risen sharply in recent years, with a peak in approvals in 2022 under Democratic president Joe Biden.

In contrast, the peak in rejections was recorded in 2018, during Trump's first term in the White House.