The 2024 presidential election has brought Donald Trump back to the White House, and with his return comes renewed focus on his policies impacting the technology sector. From tariffs to antitrust regulations, Trump’s stances on these issues have the potential to reshape the landscape of the industry.
Tariffs: A Trade War Threat?
One of the most contentious aspects of Trump’s previous presidency was his aggressive use of tariffs. He’s already indicated a commitment to his “America First” economic strategy, suggesting that he’ll continue to push for tariffs on imports, particularly those coming from China. Companies like Apple, heavily reliant on Chinese manufacturing, could face significant cost increases due to these tariffs, which they might pass on to consumers.
Semiconductors: A Domestic Focus
The semiconductor industry faces a unique set of challenges under Trump. While he’s critical of the CHIPS and Science Act, which aims to boost domestic semiconductor production, he has suggested that high tariffs could incentivize chip manufacturers to invest in US-based production facilities. This could potentially lead to a shift in manufacturing away from China, but also raise concerns about the potential impact on global supply chains.
Trump’s skepticism towards Taiwan Semiconductor Manufacturing Company (TSMC) investments in the US, particularly their $40 billion Arizona project, is also worth noting. He might attempt to modify or even cancel subsidies promised to TSMC under the CHIPS Act, potentially affecting the company’s expansion plans.
Antitrust: A More Deregulatory Approach
Trump’s previous administration was known for a more deregulatory approach to technology compared to the Biden administration. He has vowed to roll back Biden’s executive order on AI regulation, which he views as government overreach. Under Trump, companies like Microsoft and Amazon’s AWS could face less scrutiny regarding their AI development and deployment.
The Justice Department’s increased scrutiny of major tech companies during the Biden era, particularly regarding monopolistic practices and mergers, could see a shift under Trump. The multiple antitrust cases brought against Google, including allegations of monopolizing search and advertising markets, might receive a different approach under a Trump administration.
Market Reactions
The stock market has reacted positively to Trump’s victory, with the tech-heavy Nasdaq futures surging significantly. This suggests investor confidence in a potentially favorable environment for the technology sector under Trump.
Companies like Apple, TSMC, Google, Microsoft, and Amazon have seen their stock prices fluctuate in pre-market trading, reflecting the anticipation of Trump’s policies and their potential impact on the sector.
The coming months will reveal how Trump’s promises and past actions translate into concrete policies affecting the technology sector. Investors and businesses alike will be closely watching to see how the new administration navigates the complex challenges of the tech landscape.
