This normally happens near the bottom, historically. Low wage workers come and work on farms and at other minimum wage jobs, they do actually have an effect on the labor market that is negative for American workers, but since there are usually many jobs on the bottom it doesn't have a large effect.
But at the top - where jobs are far more limited and scarce - it has a large effect.
Further, the companies using H1B are almost entirely large companies. Small businesses are not being hurt at all by a shortage of H1B's.
International trade is highly susceptible to imbalances. Lower wage workers will replace higher wage workers if not protected against, and it isn't always a win in terms of lower cost goods - it often can displace an entire industry that normally would have done well. Especially industries that are important for America to stay strong in, like manufacturing. It also is highly susceptible to distortionary trade policy - see subsidies in foreign nations designed to take over entire industries long term.
Finally, a note on hover governments should work. They should look out for their citizens. That is their modus operandi. There shouldn't be charity, unless the charity in some way truly helps our citizens. And especially, they should care about the average gal. H1B visas are literally taking out a big pool of well-paid jobs that otherwise we could easily be feeding with community college graduates and younger citizens.
This isn't even close to hacking anything, by any definition of the word. It's literally what he campaigned on years ago, if anything it's super long overdue.