Companies Struggle with Trump’s Made-in-America Push Amid Immigration Crackdown

Foreign companies face immigration barriers and tax challenges despite White House efforts to boost domestic manufacturing

As the Trump administration intensifies its Made-in-America campaign, overseas firms seeking to relocate operations to the U.S. are encountering significant obstacles, including visa processing flaws, funding shortages, and complex regulatory requirements.

While tariffs have spurred interest in domestic manufacturing, logistical and immigration hurdles are slowing progress for foreign enterprises.

Visa Processing Delays Hinder Workforce Transfers

A critical challenge for companies is transferring skilled foreign workers to U.S. facilities. The H-1B visa program, capped at 85,000 annually, is insufficient to meet demand, while L-1 visas for intracompany transfers require meticulous documentation and proof of “specialized knowledge”.

Hyundai’s recent difficulties highlight these flaws: despite pledging to expand U.S. production, immigration raids and visa scrutiny have disrupted operations. Similarly, European and Asian manufacturers like BMW and LG Electronics have faced delays in moving essential employees to their U.S. facilities, hampering technology transfer and operational efficiency

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The Regulatory Compliance Costs

Beyond immigration, financial and regulatory barriers loom large. Foreign firms must navigate U.S. tax laws, state-level compliance requirements, and industry-specific regulations. For example, nuclear energy and aviation sectors restrict foreign ownership, while CFIUS reviews add layers of national security scrutiny.

Additionally, establishing U.S. subsidiaries requires substantial capital, beyond initial investments, to cover payroll, benefits, and cybersecurity infrastructure, which can add 30% to labor costs alone . Although programs like Walmart’s “Grow with US” offer supplier support, SMEs often lack access to such initiatives.

Broader Implications for Reshoring Efforts

These challenges threaten to undermine the administration’s reshoring goals. While companies like TSMC and AstraZeneca have announced U.S. expansions, broader adoption is slowed by visa backlogs and compliance costs.

The manufacturing sector’s talent gap, 1.9 million jobs could go unfilled by 2035, exacerbates these issues, forcing firms to rely on automation amid worker shortages . Without visa reforms and streamlined regulatory processes, the Made-in-America push may struggle to achieve its job creation and investment targets.