Trump 2.0 and Tech

In the wake of his decisive win, Donald J. Trump is rapidly reshaping the Washington, DC landscape. His bold new vision is already affecting the Tech sector. In 2025, Republicans will hold the majority in both houses of Congress, as well as the Presidency. This political alignment between US Executive and Legislative branches will create not just tailwinds, but strategic moves, driving Tech forward. We explore 6 reasons why Trump’s re-election puts Tech center stage:

01| Championing innovation in Emerging Tech

Driven by the dual goals of economic competitiveness and national security, Trump's incoming administration aims to secure America's leadership in Emerging Tech industries, including crypto, AI, and the rapidly expanding commercial space sector.  This agenda is especially relevant in the context of the ongoing AI competition between the United States and China. 

The significant influence of Elon Musk, appointed to co-lead the new Department of Governmental Efficiency, will likely shape the Trump administration’s strategy for growing US Tech supremacy and capital formation. 

02| Artificial Intelligence safety a key concern

AI regulation – and its proper scope – will be a key topic to watch, especially given President-elect Trump’s vow to repeal President Biden’s AI Executive Order, including on freedom of speech grounds, and Elon Musk’s public support for regulating AI.

AI has been a contentious topic for the US Congress, which has debated AI restrictions along partisan lines, with Biden's AI Executive Order directing federal agency action but not imposing binding regulations. This has prompted States to take the lead in AI legislation, but also creating a complex legal landscape which poses challenges for companies and projects doing business in the US.

As we await Trump’s next move, AI safety remains a crucial concern alongside national security, with Republican control potentially accelerating federal AI legislation.

03| Trumps win a victory for crypto and digital assets

The recent election has transformed perception of the crypto industry from a subject of government scrutiny to a promising avenue for growth and development.

Trump's campaign promises, including to fire SEC Chair Gary Gensler, have fueled market enthusiasm, resulting in Bitcoin reaching new all-time price highs. Despite immediate priorities like taxes, tariffs and immigration, after years of partisan divide over how to regulate crypto, pro-crypto legislation is expected to advance in 2025, together with changes in key regulatory leadership and greater legal clarity for crypto markets.

Irrespective of whether Trump delivers on some or all of his crypto pledges, the market already has felt the impact, including with increased deal-making and interest from investors, builders and contributors — including Trump himself

04| Restrictions on Infrastructure as a service (IaaS) providers expected to grow 

Given Trump’s focus on national security, restrictions on IaaS providers are expected to increase. In 2021, Trump’s IaaS Executive Order set the ball rolling on requiring such providers to verify identities of persons obtaining an IaaS account and maintain transaction records to prevent foreign cyber threats. 

Biden also proposed certain IaaS reporting requirements in the AI context. In January 2024, the Commerce Department introduced proposed IaaS provider reporting rules, with the comment period ending in April 2024.  

Final rules are expected to be introduced and,  if implemented, could significantly affect the tech sector (including cloud service providers and the crypto industry), necessitating compliance adjustments to meet new KYC/AML requirements. 

05| Big Tech’s future

President Trump’s re-election has sparked discussions of a return to the Big Tech deal-making, yet Big Tech’s future will be influenced by those chosen in key roles. 

Brendan Carr, nominated for FCC Chair, has advocated for repealing Section 230 of the Communications Decency Act of 1966, in addition to the ban of certain Big Tech platforms. Vice-President-elect Vance supports stringent antitrust measures against Big Tech, aligning with Trump, Carr, and others critical of Big Tech platforms, including for freedom of speech-related considerations.  Pam Bondi, Trump’s pick for US Attorney has lobbied on behalf of certain Big Tech players.

Internationally, Trump aims to shield US tech firms from stringent EU regulations like the Digital Services Act and Digital Markets Act.

06 | US-China relations grow colder, while India warms up

The rise of US-China tensions has affected sectors like AI, autonomous vehicles, and semiconductors. Trump’s administration is expected to impose tariffs on Chinese goods and restrict exports of crucial technologies like AI, chips and quantum computing. 

These actions will likely push US companies to diversify supply chains and increase investments elsewhere, including India, in order to reduce US reliance on Chinese suppliers.

Read more in our US team's in-depth briefing: Tech’s Victory Lap: 6 Big Reasons Why Trump’s Re-Election Puts Tech Center-Stage