About the author: Christopher Tang is a distinguished research professor at UCLA.
President Donald Trump announced on Sunday that the U.S. will allow foreign companies to temporarily bring in “people of expertise” to train American workers, after which these experts would return to their home countries. “If we didn’t do this,” the president wrote on social media, “massive investment will never come.”
He may be too late. An Immigration and Customs Enforcement raid on a Hyundai-LG plant earlier this month, in which 475 workers, many of them South Korean, were detained in shackles, has already prompted South Korean businesses to suspend at least 22 projects in the U.S. cumulatively worth more than $100 billion.
The sticking power behind Trump’s statement remains speculative. But it is evident that such a policy redirect is necessary to restore foreign investment and revitalize the U.S. manufacturing sector, which has suffered from decades of offshoring. Even Trump has acknowledged that Americans lack the technical skills required for redeveloping the type of large-scale domestic production he envisions in strategic sectors, such as electric vehicles and semiconductors.
To realize Trump’s vision of a manufacturing revival, the U.S. government must undertake comprehensive visa reforms for short-term technical workers.
The current reliance on the H-1B visa program, which is capped at 85,000 annually and subject to a lottery system, creates uncertainty for foreign firms investing in U.S. manufacturing. Due to the limited availability of those visas, some firms like Hyundai are resorting to using B1 and B1/B2 visas.
The use of B1/B2 visas for technical work, such as the kind the Hyundai workers were doing, falls into a gray legal area that invites immigration enforcement actions. They are intended only for short-term business and tourism-related travel—not for active employment.
South Korea has offered a potential solution. Last week, it proposed a dedicated E-visa quota for short-term technicians, in hopes that would allow it to follow through with its $350 billion investment in the U.S. that its tariff relief is predicated upon.
Taiwan’s TSMC provides a model for managing foreign labor through the existing E-visa program. Approximately half of the workforce at its Arizona plant comprises Taiwanese nationals hired under the E-visa framework. U.S. labor unions have criticized this approach—but TSMC justifies it as a temporary necessity. There simply aren’t enough skilled domestic workers: Nearly half a million manufacturing jobs are unfilled in the U.S. right now.
TSMC has also engaged in proactive communication with U.S. agencies and lawmakers, including Sen. Mark Kelly (D., Ariz.), to ensure that visa applications are evaluated on merit and within legal frameworks. The company has emphasized to U.S. lawmakers the complexity of building semiconductor fabs and framed its foreign labor importation as a temporary measure to train U.S. employees, with the goal of gradually localizing the workforce.
Contrast that with Hyundai. It used third-party subcontractors to hire foreign nationals on apparently inappropriate visas. The ICE raid at its Georgia plant not only disrupted operations, but it also triggered diplomatic fallout between the U.S. and South Korea.
Korean President Lee Jae Myung got involved, issuing a stern warning that Korean companies may hesitate to invest in the U.S. unless visa processes are improved. His government also announced today that it will conduct a probe into potential human rights violations connected to the ICE raid.
Trump and Congress should realize that to attract and retain foreign investments in U.S. manufacturing, they must develop better bilateral diplomatic protocols for foreign direct investment labor. These protocols should facilitate coordination between U.S. agencies, lawmakers, and foreign companies, ensuring that visa compliance is monitored across all tiers of contractors. A centralized governance team within multinational corporations could help monitor visa usage and ensure legal compliance, reducing the risk of enforcement actions.
Furthermore, the U.S. must establish clear communication channels with foreign governments and investors to prevent misunderstandings and foster trust. Diplomatic engagement should be prioritized to address concerns before they escalate into public controversies. Quiet audits, targeted enforcement, and consultations can be more effective than aggressive raids in maintaining international partnerships.
The Hyundai raid was overly aggressive—and avoidable. It could have been handled tactfully through audits or diplomatic consultations. Instead, the incident undermined trust between the two nations and sent a chilling message to global firms considering U.S. expansion.
Trump’s proposal to correct the problems that led to the raid is a welcome first step. But more coordinated efforts are needed to rebuild the manufacturing sector. With the right policies and diplomatic engagement, the U.S. can become a stable and attractive destination for global industrial collaboration.
