Trump Set to Dissuade Employment- Based Immigration Through Tax and EEOC Policies

The Trump administration is strategically seeking ways to restrict employment-based immigration as part of its 'America First' agenda by leveraging existing laws to bypass the need for new legislation from Congress. This strategy includes:

1. Section 891: President Trump’s America First Trade Policy memorandum references section 891 of the tax code—a rarely discussed provision that grants the president authority to impose double taxation on foreign companies and individuals in the United States if their home countries implement discriminatory or extraterritorial tax policies against U.S. citizens.

   While it hasn’t been tested, section 891 could have far-reaching implications, particularly in response to the OECD’s Global Minimum Tax initiative (Pillar 2) intended to establish a global minimum corporate tax rate of 15% in each of a company's operating jurisdictions.

   More than 140 countries, including major economies such as Japan, Canada, South Korea, and the European Union, have committed to this initiative, raising the question of whether the U.S. will invoke section 891 in retaliation.

2. EEOC Crackdown on 'Anti-American' Hiring Practices. The EEOC, under Acting Chair Andrea Lucas, has signaled a sharp departure from its historic focus on protecting immigrant worker rights. Instead, the agency is now emphasizing enforcement against employers who favor foreign workers over U.S. citizens, aiming to prevent perceived abuses of legal immigration programs. 

“Unlawful bias against American workers, in violation of Title VII, is a large-scale problem in multiple industries nationwide. Many employers have policies and practices preferring illegal aliens, migrant workers, and visa holders or other legal immigrants over American workers—in direct violation of federal employment law prohibiting national origin discrimination. Cracking down on this type of unlawful discrimination will shift employer incentives, decreasing demand for illegal alien workers and decreasing abuse of the United States’ legal immigration system,” Lucas wrote in a press release earlier this month. 

• This policy shift was illustrated in the EEOC’s case against LeoPalace Guam Corporation, which settled for $1.4 million on February 18, 2025, after allegations that it provided inferior wages, benefits, and working conditions to non-Japanese employees – including American nationals – compared to their Japanese counterparts.

Why it matters: These initiatives reflect a strategic focus on controlling immigration without the need for new legislation or congressional approval. 

• It is not yet clear whether section 891 will be invoked, which countries might be affected, or how existing tax treaties and dual-citizen U.S. nationals could be impacted. 

  • If enforced, companies with international ties could face significant tax burdens, forcing them to either reduce their foreign workforce or dramatically increase salaries to offset the financial impact. 

• Industries heavily reliant on immigrant labor—such as agriculture, construction, healthcare, hospitality, and food processing—may experience heightened scrutiny from the EEOC. 

  • Employers in these sectors should proactively review their hiring and employment policies to ensure compliance with evolving federal priorities. 

The bottom line: As these policies unfold, businesses must stay vigilant and prepare for changes that could reshape the labor market and tax landscape in the United States.