Are US companies afraid of hiring contractors from Eastern Europe?

A lot of times companies sign contracts to be exclusive with one remote shop. For example, my company can only source remote engineers from one company in India. We still have the option to bring in on-site contractors from other companies.

It's my understanding that the cost of labor is cheaper in India than in Europe, which is why companies like mine opt for resources there. After all, the reason they outsource is to reduce cost, so they will go with the cheapest option that can meet their needs.

As long as you aren't looking for remote work, you should e fine. If you are looking for remote work, you would have better results going through a local contracting shop. Security is a big thing with most companies, so they would rather contract with one shop than with many individuals.

This is all from the perspective of my US based company. Others may be different.

There’s an enviable reputation for hard work, high quality and beneficial labour cost discounts vs other european countries.

I will say that recently the trend seems to be South American firms. They have the advantage of being in similar timezones.