Many people, including Trump have noted that Mexican workers send a lot of money back to Mexico from the United States. It is estimated that some 23 billion dollars goes to Mexico each year from both legal and illegal workers. Surprisingly India also receives an estimated 10.5 billion dollars in remittances from its citizens working abroad in the United States. But this money is a tenth of the amount now reported to go to India from the H-1B visa program.
Its called the outsourcing sector and it generates over 150 billion dollars to India each year by sending workers abroad to support high tech jobs. Its almost beyond imagining that 3/4 of India's annual revenue from the United States comes from deliberately sending workers abroad under the H-1B system. It does though explain why so many of these "trained engineers" always come with credentials showing their capability even as they- individually- show they can't do the work. It also explains the push by such suppliers as Tata Consultancy of certain tests to be used to screen applicants which universally show American STEM workers as incompetent while always passing the foreign workers supplied by Tata, etc. No one seems smart enough to consider that these suppliers are coaching their applicants on the right answers and or weighting the test against the standard training of American workers. Anything to insure the sponsoring of the indian worker who generates so much revenue for their home country.
This said, the change in the fees alone is expected to cut profits by only 400 million dollars (less then 0.03%) which is still enough for India to file a trade suit. The fact these workers are working at reduced wages to the American workers they are many times replacing is not of concern to India. To India, the change in fee costs is putting Indian workers in a less favorable condition to their American counterparts. American counterparts they are otherwise putting out of work.
In the end the real scandal is yet to occur. It will come when the majority of these temporary workers return to their homes in India with skills and knowledge that was embargoed under US law from export. ITAR rules may sound like they only cover munitions, but since the 1990s they cover encryption technology and software and technology for space flight and satellite systems. Technology many of the high tech American firms are employing the foreign workers for. Soon the cost associated with these H-1B workers for American companies will go way up.