On Wednesday, top executives from major tech companies congratulated Donald Trump, the newly elected U.S. president, which included figures like Sundar Pichai of Alphabet and Tim Cook of Apple. Despite previous tensions, they embraced the future under an administration known for its unpredictable stance on technology.
In his first term, Trump had often criticized Big Tech firms, calling for regulations that would raise operational costs. Concerns arose among business leaders and venture capitalists regarding potential instability that might affect their companies. However, Trump also indicated he would eliminate regulatory hurdles that could stifle growth for certain tech sectors.
With Elon Musk fervently supporting Trump, there’s speculation about a shift in favoritism among tech giants. Historically, Trump’s tech policies have fluctuated, and his past actions provide insight into what might come during a second term.
Trade and Tariffs
One critical issue on the tech front is Trump’s proposal for import tariffs, which could dramatically impact tech businesses and consumer spending. He had previously proposed a universal 10% tariff and additional tariffs on imports from China that could reach up to 100%. This has raised alarms for companies like Apple, which derives most of its products from China, and large retailers reliant on Chinese materials.
While some analysts believe Apple can mitigate these tariffs through a diversified supply chain, concerns persist about how higher costs might change consumer behavior. Predictions suggest that retaliatory tariffs could further harm U.S. businesses, as manufacturers have experienced supply chain disruptions in the past and may shift production to avoid tariffs.
AI Leadership
In terms of artificial intelligence, Trump’s second term emphasis could be on maintaining the U.S. edge over China in AI capabilities. During his first presidency, he aimed to lift regulations preventing innovation in technology. Observers expect Trump to supply federal resources to enhance AI development while also constraining Chinese tech companies’ access to U.S. technology.
Trump has expressed intent to repeal Biden’s executive orders regulating AI, which were designed to impose safety measures and guard against algorithmic bias. Experts warn that this could lead to a regulatory vacuum, which may see states or global entities stepping in to fill the void.
Social Media and Child Safety
Tech platforms have benefited from Section 230, protecting them from being held liable for user content. Trump has previously claimed this law posed a national security risk and attempted to remove these protections, threatening to veto significant spending bills that did not meet his demands for reforming the law. With favorable congressional control, Trump could pursue repeals that may lead to a wave of lawsuits against tech platforms.
Child safety is likely to emerge as a political discussion point, with a potential shift towards parental control regulations rather than platforms implementing their own safety measures.
TikTok’s Future
For TikTok, Trump’s election could signify a reprieve from potential bans that Congress had been considering. However, undoing existing legislation requiring the sale of TikTok’s U.S. operations would be complex, requiring significant political alignment, which may be challenging even under a pro-Trump Congress.
Cryptocurrency Commitment
Trump has also aligned himself with the cryptocurrency community, describing himself as the "crypto president" and promising to enhance U.S. standing in the cryptocurrency mining space. He has made pledges to create a national bitcoin stockpile and appoint a council dedicated to cryptocurrency.
Overall, the tech world is poised for shifts in policies depending on Trump’s maneuvers, particularly around tariffs, regulation of AI, and the overall digital landscape during his second term.
