The first one hundred days of any new U.S. President’s term is a useful measurement for evaluating their policies and impacts. For former President Donald Trump, his first actions were rather impactful, and at times, contentious for numerous industries, one of them being technology. His practices relating to trade, government policies, and international relations during this time were especially impactful to established firms, small businesses, and the emerging digital economy. In this piece, I discuss the notable changes in the technology industry resulting from the first 100 days of Trump’s presidency and the impact those changes had on the relevant stakeholders, including the companies, employees, and the general public.
Immigration Policies and the Technology Industry Workforce
The Immigration policies of Trump’s administration were one of the first, and clearest, impacts felt by the technology industry. His administration ordered travel restrictions which included citizens from a number of mostly Muslim nations. Many technology companies that earned a large portion of their revenue from overseas skilled workers found themselves in a difficult position.
Global pools of talent, especially in software engineering, data science, and artificial intelligence, have always been beneficial for tech firms like Google, Microsoft, and Apple. The work visa limitations, especially the H-1B program, which is beloved by tech companies because it allows them to hire skilled foreign employees, drew a lot of anger within the industry. It was widely believed that restricting international talent would hinder growth and innovation. Notable tech CEOs such as Tim Cook from Apple and Sundar Pichai from Google publicly opposed these policies, arguing that diversity and global participation are crucial for the success of the tech industry.
Environment of Regulation and the Tech Sophisticates
- The Trump administration’s policy of economic deregulation made it significantly less restrictive when it came to regulation for the tech sector. For the tech giants, this meant more freedom in how they operated.
- For example, under the leadership of Chairman Ajit Pai, the Federal Communications Commission (FCC) reversed the net neutrality policies of former President Obama’s administration, which was a tremendous victory for internet service providers (ISPs) and technology companies. By repealing these regulations, the Trump administration gave ISPs the freedom to control and manage internet traffic in a manner that best suited them, regardless of how it affected businesses that depend on equal access to the internet for providing their services. The startup technology businesses and internet based services faced an uncertain future after the net neutrality policies were abolished as it was feared that the internet traffic could be deliberately slowed down or billed at a premium.
- Additionally, Trump allowing companies greater freedom, led to the expansion of Facebook, Amazon and Google, who up until that point had to operate under strict governmental control. Critics believe that though this action may have benefited the companies in the short run, it allowed these organizations to gain unfathomable dominance, particularly in the sectors of data, advertising, and monopolistic practices. During Trump’s administration, as data privacy and the circulation of misinformation through social channels became more problematic, calls for harsher regulations within the technology sector, including possible anti trust actions, increased.
Trade Wars and the Impact on Global Supply Chains
- During Trump’s first 100 days in office, there was a speed up of implementation in U.S. trade policies. Tariffs were placed on other countries including China, which had significant impacts on the tech sector. A lot of Bring in IT companies depend on manufacturing in China where labor is cheap and the country is deeply integrated with the global supply chain.
- The added tariffs on imports from China, especially in electronics, further worsened the situation for so many companies involved in the technology sector. For example, Apple Inc. faces significant production costs since it manufactures a vast majority of it’s products in China. Even though Apple CEO Tim Cook claimed that the company’s products would not be directly impacted by the tariffs, a large number of other Apple supply chain companies were affected, especially those in the hardware business which supply smartphones and laptops.
- Also, the more Trump integrated policies of trade administration created definitiveness to US companies which relied on trade, supply chains, or even simply international logistics. It was like a tsunami in the economy, affecting the global availability of the products and services. Companies like Amazon and Google, which work in a multiple of areas, also got into trouble in providing their services due to the growth in the conflict between the countries.
Developments in 5G and the Technological Competition with China
In the early days of his presidency, Trump expressed a desire to move American innovation forward, especially in the context of 5G networks. The Chinese government, with the help of companies like Huawei, was fast becoming the world leader in 5G technology. Accordingly, Trump’s administration took action to mitigate their growing dominance. His administration pressured its allies to refrain from using Huawei’s equipment in their 5G networks, citing national security risks of spying and cyber warfare.
While this approach incited innovation in US companies, it also fostered fears regarding a potential technological Cold War. American tech companies were trapped in the middle of these geopolitical tensions as they struggled to keep their business afloat in a highly competitive, contentious world. There were both difficulties and chances for success, as some American tech companies shifted their focus to the increasing demand for 5G infrastructure, while other suppliers dealt with problems from the ban of Chinese hardware and software.
Growth in Artificial Intelligence and Innovation Strategies
During Trump’s presidency, artificial intelligence (AI) became a key component of his economic policy, with major expenditures going toward the enhancement of AI technologies. Both his manufacturing and healthcare policies were show-cases of how his administration intended to diffusse AI in myriad supply shains and verticals. Albeit, his administration’s initial policy approaches towards AI were deeply disconnected.
In any event, US technology corporations, and especially those in Silicon Valley, continued to dominate the market of AI development and received enormous amounts of venture funding. These companies fueled progress in new technologies for machine learning, natural language processing, and self-driving cars.
Conclusion
Upon assuming office, Trump had policies that impacted the tech industry both positively and negatively. While his stricter immigration policies coupled with regulatory changes were a hurdle for multinational corporations, like Apple, Google, and Facebook, they were relatively unscathed as opposed to smaller tech startups. The full effect of Trump’s policies, both positive and negative, will be widely argued for years to come. However, there is an undisputed truth that his first 100 days set the foundation for a new digital economy.
For many stakeholders in the tech industry, these 100 days served as a period of intense mental strain, where everything had to be done in a timely manner and required innovative thinking. As time progressed, the industry began seeing newer shifts that were a result of global changes and Trump’s policies.
