The Trump administration’s action against Microsoft and seven other technology companies exposes a fundamental contradiction in America’s economic ambitions. A country determined to lead the world in artificial intelligence, software and advanced computing cannot easily reconcile its demand for exceptional talent with an immigration policy increasingly shaped by hostility towards foreign workers. The dispute centres on the H-1B visa programme, which enables American employers to recruit skilled professionals from abroad. The administration alleges that companies have exploited the system at the expense of domestic employees.

Vice-President JD Vance has accused the targeted firms of replacing American workers with foreign labour, while the Labour Department has halted the processing of their applications under the permanent labour certification programme, an important step towards employment-based Green Cards. Protecting American workers is a legitimate objective. Companies must not be allowed to manipulate immigration rules to depress wages or evade employment obligations. But allegations require evidence. Layoffs and visa applications occurring during the same period do not, by themselves, establish that foreign workers........

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