Industry watchers say technology firms in Canada are the likely beneficiaries of U.S. President Donald Trump's clampdown on the H-1B visa widely used by Silicon Valley companies to bring in highly-skilled immigrants.

The new limits published in the Federal Register, the daily journal of the American government, are intended to stop tech giants from using H-1B workers as cheap labour and protect American jobs, said Homeland Security.

Under the changes developed by U.S. departments of Homeland Security and Labor and due to come into effect December 7, the definitions of specialty occupations, worksites, and third-party worksites are being revised. Staffing companies will now only be able to bring in immigrants under this visa to third-party sites for a maximum of one year.

American immigration activists are lambasting the Trump administration for this latest step in restricting immigration.

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