How Trump's election impacts the tech world

Donald Trump won the US election, marking his return to the White House and potentially bringing significant changes to the technology sector. Known for his past stances on issues such as data privacy, foreign influence in the sector and deregulation, Trump will certainly have implications for the technology industry, both in the United States and on the global stage.

The result of the American election

The republican Donald Trump emerged victorious in the US presidential election, securing his return to office after reaching 276 Electoral College votes, above the 270 needed to secure victory. The race was tight against Kamala Harris, a Democratic Party candidate who led a strong campaign, seeking a new term for the Democrats in charge of the country. The electoral race was intense, marked by debates and strong political positions that divided the American electorate in a polarized scenario.

In addition to the presidency, the Republican Party of Trump has also made significant gains in Congress, winning majorities in the House of Representatives and Senate elections. These victories strengthen the Republican presence in the Legislature, giving the party a strategic advantage to implement its conservative policies. This expanded control of Congress indicates that Trump may encounter less resistance on priority issues on its agenda, impacting not only domestic politics, but also global and economic issues in various sectors.

Support from Elon Musk and other tech CEOs

The support of Elon Musk a Donald Trump in the presidential election he was one of the most expressive among the main names in the technology sector. Musk, known for leading innovative companies like Tesla and SpaceX, invested heavily in Trump's return to power, contributing more than $130 million to the Republican's campaign and other strategic party contests in the legislative elections. This support resulted in great visibility for Musk, who can now count on a strong ally in the White House, interested in reducing regulations and expanding incentives for the private sector. Trump, in turn, openly expressed his admiration for Musk, calling him a “super genius”.

with the victory of Trump, Musk not only consolidated its influence on the political scene, but also saw an immediate impact on the markets. Tesla shares rose by up to 15% shortly after the results were confirmed. Additionally, we bring Trump promised to involve Musk in his team of advisors to deal with the containment of public spending, which can open doors for the businessman to directly influence government policies.

Besides Musk, other tech CEOs have also supported Trump's campaign. Sundar Pichai, Google CEO, would have praised the popularity of Trump on social networks and search platforms, while Apple's Tim Cook, would have shown interest in maintaining a dialogue with the new administration on international regulations and competitiveness, according to research by international newspapers.

Mark Zuckerberg, CEO of Meta, and Andy Jassy, ​​CEO of Amazon, would also have been involved in conversations with Trump and your team, signaling an interest in a more cooperative relationship with the republican government.

“Made in America” Priority

The speeches of Donald Trump often highlight the importance of strengthening the national industry, especially in the technology sector, with a focus on products “Made in America". Trump has emphasized the need to bring back to the country the production of high value-added items, such as electronics, to reduce dependence on external markets.

However, this stance creates tensions with foreign markets, especially with China, one of the largest global technology producers. Trump has frequently criticized the Chinese market, highlighting concerns about unfair competition practices and cybersecurity. This line of thinking feeds into a policy that aims to curb the influence of emerging powers like China while trying to ensure a self-sufficient market in the United States.

Trade Tensions and Tariff War

With the election of Donald Trump, trade tensions in the technology sector are set to intensify, especially given promises to tax Chinese products by up to 60% and impose tariffs of up to 20% on other imports. This tariff approach aims to reduce dependence on foreign products and encourage domestic production, directly impacting technology companies that rely on Chinese parts and components. The intention of Trump is to make imported products less competitive in the American market, promoting a “tariff war” that can, on the one hand, benefit local companies in the short term, but also cause increased costs for consumers and manufacturers.

In addition to tariffs on imported products, Trump proposes a series of measures to ease taxes on American companies. These proposals include reducing the corporate tax rate from 21% to 15% and repealing the $10.000 tax deduction cap., policies that aim to attract investment and encourage the expansion of local businesses.

The U.S. tech community also faces uncertainty regarding immigration and trade policies. Trump, which directly impact the workforce and supply structure essential to technology companies. These companies depend on skilled professionals from different countries and global supply chains to maintain the pace of innovation and competitiveness. Restrictive immigration policies, promoted by the rhetoric of Trump, threaten to reduce the entry of new foreign talent into the country, something vital for sectors such as artificial intelligence, software development and cutting-edge technology research, where the shortage of qualified national labor is already a challenge.

Encouraging deregulation

The results of the US elections also point to a possible new era of deregulation for the technology sector and, in particular, for cryptocurrencies and blockchain. With the commitment to reduce government control over the digital financial market, Trump and his deputy, JD Vance, announced a series of measures aimed at promoting the growth and acceptance of cryptocurrencies in the United States.

One of the first measures promised is the restructuring of the Securities and Exchange Commission (SEC), currently led by --Gary Gensler. Trump announced that replacing Gensler will be one of its initial actions, reflecting disapproval of the more restrictive measures that the SEC has adopted to regulate cryptocurrencies. In a speech, Trump stated that the SEC under his leadership will seek a balance that allows the cryptocurrency sector to thrive with less government intervention, which was welcomed by crypto market supporters.

In line with this approach, Trump announced the creation of a Bitcoin and cryptocurrency advisory board, which will work together with the Treasury Department. This board will be responsible for defining guidelines for regulating the sector in a way that is more open to innovation and less restrictive. The idea is to provide a more solid legal basis for cryptocurrency transactions and investments, without the rigid impositions that, according to Trump, limit the United States' advancement in the global financial technology market.

Trump He also spoke out against the creation of a central bank digital currency (CBDC), an initiative that some governments have been exploring. Instead of supporting such a digital centralization, he proposes strengthening the use of private stablecoins, such as USD Coin (USDC), as well as reinforcing the right of citizens to keep their cryptocurrencies in private accounts, away from state control.

Social Media, Privacy and Data Access

the position of Donald Trump in relation to social networks, privacy and access to data reflects a critical view of the power that large technology platforms exert over information and freedom of expression. During his previous term, Trump frequently accused companies like Twitter and Facebook censorship and excessive control over content shared by users, in addition to denouncing practices that, according to him, interfere with freedom of expression.

Known since his first term for using platforms to make statements about policies, trade, and specific companies, Trump He often caused market fluctuations with his posts. This direct and frequent style of communication strongly influenced the behavior of investors, who closely monitored his posts to anticipate government decisions. In January 2021, Trump became the first head of state to be banned from social networks such as Twitter and Facebook after the Capitol events. Regarding privacy and data access, Trump is in favor of policies that give citizens more control over their personal information.

Policies on Artificial Intelligence

The president-elect's approach Donald Trump The approach to artificial intelligence (AI) tends to lead to less government regulation and more freedom for the market. However, this approach will not be without limitations, especially when AI connects with issues of national security or freedom of expression. Trump expressed his intention to revoke an executive order signed by Joe Biden, which aims to establish guidelines for the development and use of AI, promoting greater intervention by public bodies on issues such as transparency, privacy and accountability. This move by Biden, although seen as a step forward in the organization of public AI policy, is seen by Trump and his allies as an obstacle to innovation.

On the other hand, the stance of Trump in relation to technology also reflects a concern about the monopolistic power of large companies in the sector, especially those located in Silicon Valley. During his first term, the government Trump had already initiated antitrust actions against giants such as Google and Facebook, on charges of abuse of economic power. These antitrust actions, which gained momentum under the Biden administration, reflect a bipartisan consensus on the excessive power of big tech, but Trump's approach tends to emphasize freedom of expression, challenging the influence of technology companies in regulating public communication and political discourse.

JD Vance, Vice President of Trump, has also been critical of the monopolistic control of information by companies such as Google, describing the dominance of technology as a threat to society. For Vance, technology companies have a progressive agenda that exerts excessive influence over society, which reflects the Republican ideology of combating the concentration of power in sectors that directly affect public life.

And you, what do you think about what will change with Donald Trump elected? Tell us in the comments!

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Sources: Business Insider, AP e with the BBC.

Text proofread by: Daniel Coutinho in 06 / 11 / 2024