The world's largest tech company is leaving a scramble to adapt to the first 100 days of President Trump's second term, despite efforts to cooperate with the president and his technologically heavy administration.
Trump's unpredictable approach to tariffs, his administration's ongoing censorship accusations, and the decision to double antitrust enforcement highlight the limitations of the big technology approach, even if he sees some victories in deregulation.
“These efforts to develop close relationships are not entirely paid dividends,” said Andrew Lokay, senior research analyst at Beacon Policy Advisors.
“It's a difficult time to become a tech CEO in Washington, DC. I think that's a bit surprising to some CEOs who thought investing in their relationship with Trump would have a greater reward in terms of policy,” he added.
Big Technology had a controversial relationship with Trump throughout his first term, but that got worse after many social media platforms banned the president in the wake of the January 6, 2021 riots.
Following Trump's victory last fall, the biggest name of technology appeared to have started with a new president and be enthusiastic about visiting him at his Marlago resort and offering a million-dollar donation to his first fund.
These tech leaders, including meta CEO Mark Zuckerberg, Amazon founder Jeff Bezos, Google CEO Sundal Pichai and Apple CEO Tim Cook, attended Trump's inauguration in January, sitting side by side in key seats at Capitol Rotonda, giving him a new relationship of trust with the president.
With Tesla CEO Elon Musk and several other Silicon Valley joining the administration, it appeared Big Tech had a key alliance in the White House.
“Silicon Valley was probably expecting a low tax, low regulation, a professional business perspective on the White House. To some extent, we've seen some of it, pushing Congressional tax cuts and the president's deregulation agenda,” Rocay said.
“But at the same time, the technology remains in the crosshairs,” he added.
Trump's tariff trips have threatened to wreaking havoc in the tech industry and disrupt supply chains at the heart of the electronics flow.
In March, the president announced that it would sweep “mutual” tariffs, including key prongs in the technology supply chain, including large import taxes on goods from China and Taiwan.
Trump eventually panicked the market and opted for a 90-day suspension at most tariffs. However, taxes on China remained intact and continued to rise as Beijing and Washington took TAT for tariffs.
As a result, Chinese imports in the US currently face 145% tariffs, while US imports in China face 125% tariffs.
The tech industry received a reprieve earlier this month when Trump announced that electronics would be exempt from tariffs. However, the relief was short-lived as the president would collect sector-based import taxes separately.
A rapid shift in government has led tech companies to hurry to catch up.
“It was a 'Elm Street nightmare,'' said Dan Ives, an analyst at Wedbush Securities. “No one thought it was this turbulence.”
“Everyone knew about mutual tariffs. [were] come. …I didn't think we would basically put a closure valve in China. This is the heart and lungs of the supply chain,” he added.
After Punchbowl News reported Tuesday, Amazon reported that it plans to show customers how much Trump's tariffs have been added to the cost of the item.
The e-commerce giant later denied the report, saying the plan had not been approved and “it won't happen.”
Similarly, Big Technology's efforts in reconciliation with Trump do not seem to ease Republicans' complaints about the industry with what they see as censorship and bias against conservatives.
The Federal Trade Commission (FTC) launched an investigation into policies of major tech companies in February related to content moderation and user bans, suggesting that it could amount to illegal censorship.
The administration's efforts are accompanied by the efforts of Congress' GOP leaders. House Attorney Speaker Jim Jordan (R-Ohio) sent numerous subpoenas to major tech companies demanding information about potential censorship.
“I think this is an issue they are more aggressively pursuing, as Republicans have both Congressional rooms and the White House,” Rocay said.
The Trump administration also refused to draw a punch about antitrust enforcement against big technology, bringing Meta to court exclusive allegations, and pushing forward its efforts to disband Google.
Both cases were brought during the first Trump administration. The Biden administration has moved forward with an aggressive antitrust approach, bringing additional cases against Google, Amazon and Apple.
However, when Trump took office for the second time surrounded by Silicon Valley Moguls, it was unclear whether his administration would take up the antitrust mantle with the same vitality.
His choice to play a key role in the FTC and the Department of Justice (DOJ) hinted at the continued scrutiny of Big Tech.
The FTC's trial against Meta also went on earlier this month, despite Zuckerberg reported that Trump had lobbyed for a settlement. Meta's CEO was called to the stands as the first witness of the agency and spent three long days answering questions.
“There is a fairly aggressive pursuit of antitrust laws on some of the major high-tech companies,” said Jennifer Huddleston, senior fellow in technology policy at Cato Institute.
Still, Trump's second term was not entirely negative for the tech industry. Deregulation has become an important focus for administrations that include artificial intelligence (AI), with authorities, including the vice president, instead focusing on innovation.
“It appears that this administration is taking a light touch approach to artificial intelligence, but we're not entirely sure what that approach will still look like,” Huddleston added.
Shortly after taking office, Trump revoked former President Biden's executive order focusing on AI safety. This said Huddleston is seen as “more restrictive and normative about the future” of technology.
The administration has not yet announced its own AI policy, but in February it requested public comment on the AI Action Plan. This has received over 10,000 responses, the White House said earlier this month.
“President Trump is always worth keeping in mind and expecting unexpected things,” Rocay said. “He's unpredictable and you can be in his good moments. You can come out in another moment.”
“I wouldn't be surprised if Tech was trying to develop a relationship with the president,” he continued. “But at the same time, there is no guarantee that it could result from a policy outcome perspective.”
