Donald Trump has won the U.S. presidential election for the second time and is set to become the 47th President on Jan. 20, 2025. His previous term significantly impacted the technology sector, particularly due to the trade war initiated with China. The coming years are expected to bring notable changes in this field, especially in the short term.
Elon Musk will greatly benefit. According to The New York Times, Tesla CEO Elon Musk has been a major supporter of Trump’s reelection campaign. He was one of the largest financial donors and filled X, the social media platform he owns, with messages endorsing Trump and encouraging people to vote for him. This immediate support has already impacted Tesla, whose stock price recently rose from $260 to $290 per share.
Finding allies. The leaders of major tech companies understand the potential consequences of opposing Trump, and their responses have been swift. CEOs such as Sam Altman (OpenAI), Tim Cook (Apple), Michael Dell (Dell), Andy Jassy (Amazon), Satya Nadella (Microsoft), Sundar Pichai (Alphabet/Google), and Mark Zuckerberg (Meta), among many others, quickly congratulated Trump after his victory.
Jeff Bezos didn’t want any trouble. Years ago, Jeff Bezos, Amazon’s founder and the owner of The Washington Post, explained how he lost a $10 billion contract due to Trump’s personal agenda against him. This time, it appears that Bezos chose not to have his newspaper publicly support the Democratic candidate, Vice President Kamala Harris, likely to avoid potential backlash if Trump were re-elected. Similarly, Meta lifted restrictions on Trump’s profiles, possibly as a show of support (or at least neutrality) in case he won the election.
Crypto endorsement. Although Trump was initially skeptical of the crypto industry, his stance changed in 2023 when he started accepting cryptocurrencies as donations to his campaign. In June, he participated in the Bitcoin conference in Nashville, where he declared his intention to make the U.S. the “crypto capital of the planet.” With Gary Gensler, a major adversary of the cryptocurrency industry, now stepping down as chair of the Securities and Exchange Commission and Republicans controlling the Senate, there may be increased support for favorable measures toward cryptocurrencies. The impact is already being felt, given that Bitcoin has reached an all-time high.
Monopolies. The antitrust actions initiated by Biden’s administration could be at risk. Lina Khan, who leads the Federal Trade Commission and oversees these cases, may have her position threatened should Trump make changes at the Justice Department. This shift could significantly affect ongoing cases against companies such as Amazon, Meta, and Apple. Apple CEO Tim Cook recently discussed this with Trump, and the former president made it clear that he wouldn’t allow the European Union to take advantage of U.S. companies.
However, the same may not be true for Google. The tech giant is viewed negatively by Trump and his supporters, which could pose challenges for its antitrust case.
AI will continue to advance rapidly. Trump hasn’t made many statements regarding the fast-evolving field of artificial intelligence. However, both Musk and tech investor Marc Andreessen, who also supported Trump’s campaign, could influence his approach to this technology. Musk and Andreessen advocate for the continued advancement of AI, while Trump’s close circle also seems to support developing it at the current pace or even faster.
Trade war with China and its impact on prices. During his term, Biden hasn’t eased the pressure on China. In fact, he's intensified it, as seen with the veto on exports of AI chips. In the coming years, Trump could take things further by potentially imposing significant taxes on electronics imported from the Asian country.
This could severely impact U.S. companies that manufacture in China, with Apple being a notable example. However, consumers would feel the greatest effects, considering that the prices of laptops, phones, and gaming consoles are expected to rise if Trump escalates the trade war with China. What’s more, the price increase could affect not only the U.S. but the entire world.
Image | Darren Halstead
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