Canada may no longer be a waiting room in the global talent race — it’s becoming the destination. Recent changes to the U.S. H-1B visa regime, including a new $100,000 fee on initial applications, have sent shockwaves through tech hiring. While the cost does not apply to renewals or existing holders, the signal is clear: attracting foreign talent to the U.S. just got harder and more expensive. For Canada, that creates a moment it has been waiting for.
“The move presents a material opportunity for Canada to attract more skilled tech workers,” said Dave McKay, CEO of Royal Bank of Canada, in remarks to Bloomberg. His point: when hiring in the U.S. becomes more expensive, locating talent in Canada can become more attractive.
Even Canada’s Prime Minister, Mark Carney has also signaled that Canada intends to lean into this moment. He said, “We want to attract tech workers who might otherwise get an H-1B,” he said in recent comments.
It’s not just the macro players speaking. On the ground, Canadian VCs and operators are already adjusting their narratives and strategies.
From the investor side, Alex Norman of N49P told Techest, that for founders themselves, the impact is limited. “Talented employees seek ambitious, world-class companies offering compelling opportunities and competitive pay. If your Canadian startup already did that, the H-1B policy change is irrelevant.”
But he pointed out that the broader ecosystem can benefit from Canada positioning itself as open to global talent, much as it did in 2016–17 when engineers arrived in droves. He also cautioned that if Canada wants to attract global capability centers, or GCCs, the bigger challenge is not talent supply but policy: “The primary deterrents for GCCs and investments in Canada are government messaging and tax policies, which are viewed as unfriendly to businesses. Long-term, the bigger play is to establish headquarters, not just back-offices.”
On the operator side, the ripple effects are already visible. “You’ll find a lot more American companies trying to set up shop here and circumvent the U.S. fee by hiring in Canada instead of the States,” said Moutie Wali, Director of Digital Transformation & Integrated Planning at Telus in exclusive conversation with Techest.
He recalled meeting a Microsoft employee who relocated to Vancouver while waiting for Seattle paperwork to clear — a workaround that is likely to accelerate dramatically now. At the same time, he warned that Canada cannot simply swing open the doors: “Higher tax brackets, lower salaries compared to the States, and recent restrictions on new immigrants and students will keep things cautious. The government might selectively open for expertise in AI or other high-skill industries, but they won’t make it completely open.”
The U.S. market is already adjusting. Intuitive, a leading medtech company in Sunnyvale, which generated over $8 billion in revenue last year and is an S&P 500 member, recently paused offers to candidates requiring H-1B sponsorship. That decision underscores how seriously firms are rethinking hiring in the U.S., and why Canadian expansion may become the path of least resistance.
But opportunity is not the same as capacity. Canada’s immigration backlog now exceeds 900,000 applications — nearly 40% of all in process. Rising housing costs, capped student permits, and limits on how many skilled workers the system can absorb add friction to the dream of Canada as an unlimited alternative.
Attracting more people will not be enough; Canada must compete for the right talent — AI researchers, cybersecurity experts, quantum engineers — while offering a compelling business environment to keep them here.
What is clear is that the narrative has shifted. The U.S. is adding friction to skilled immigration, and Canada is emerging as the open door. RBC’s framing, Carney’s intentions, Norman’s ecosystem view, Wali’s frontline perspective, and Intuitive’s hiring pause together show a country standing on the edge of opportunity. The race is not about whether Canada will benefit — but about whether it can move fast enough, and strategically enough, to turn this visa moment into a lasting competitive advantage.
