During his US presidential campaign trail, President-Elect Donald Trump vowed to overturn key Biden administration policies. Now, with his election victory, the tech sector awaits significant policy shifts that could reshape multiple industries.
Musk's potential influence on tech direction
According to the South China Morning Post, Elon Musk, a key financial and strategic supporter of Trump's campaign, may serve as a policy advisor, even if not in a formal cabinet role. Musk's influence could be significant, potentially shaping regulations that affect his companies, Tesla and SpaceX, and possibly impacting competitors in the EV and aerospace sectors.
AI regulation rollback expected
Trump has indicated his administration will prioritize AI development focused on free speech and human well-being. He plans to revise Biden's October 2023 AI executive order, moving toward a low-regulation AI policy. However, experts suggest he might amend rather than revoke the order entirely.
Semiconductor policy shifts loom
A top concern is Trump's stance on the semiconductor industry. During his campaign, Trump criticized Biden's CHIPS and Science Act, arguing that tariffs on foreign chipmakers would better revive US semiconductor manufacturing than subsidies for domestic production. Industry observers worry he may alter or even end CHIPS Act funding. Companies like TSMC and Samsung are rushing to finalize subsidies before potential policy changes take effect.
Additionally, Trump's stance on Taiwan could add further uncertainty. He previously claimed Taiwan had "stolen" US semiconductor business, suggesting Taiwan should pay more for its security. Market watchers fear his rhetoric may affect US-Taiwan semiconductor ties, especially given Taiwan's pivotal role in advanced chip production.
US-China tech tensions to intensify
In China, Trump has proposed tariffs on all imports, including higher duties on older-generation chips, and is expected to strengthen restrictions on advanced semiconductor exports. While the Biden administration applied similar controls, Trump's more transactional approach to foreign policy could lead to unpredictable shifts.
The US Treasury recently restricted investments in advanced technologies in China. Trump may not only continue these controls but could broaden the scope, focusing on unilateral measures rather than close ally coordination.
EV policy favors domestic producers
Trump has criticized the Biden administration's Inflation Reduction Act (IRA), which supports green tech sectors, including EVs, claiming it favors foreign over American carmakers. He is expected to reduce or eliminate EV subsidies, though analysts predict Tesla to remain an exception due to Musk's close ties to Trump and Tesla's strong market position.
Furthermore, Trump is likely to raise tariffs on Chinese EVs to protect US manufacturers, creating a favorable environment for American companies like Tesla.
Social media stance shifts
Previously, Trump signed an order requiring TikTok to divest its US operations, but now he views it as a key competitor to Meta's platforms and may overturn the ban. A survey conducted by Pew Research Center in September 2024 showed US public support for a TikTok ban dropped from 50% in March 2023 to 32%.
Digital innovation policies take shape
Trump views Biden's AI executive order as restrictive and may modify it to foster AI innovation, including potential land-use and power supply adjustments to support the sector. While the future of AI policy leadership under Trump is uncertain, industry experts suggest JD Vance, with his Silicon Valley experience and pro-open-source stance, could play a key role.
On digital currency, Trump has promised to make the US a global leader in Bitcoin and cryptocurrency. He has vowed to replace SEC Chairman Gary Gensler, whose regulations on digital assets he opposes, with an appointee likely to favor a more relaxed crypto policy.
