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For a time, it appeared that President Donald Trump would support the tech sector. However, the dynamic has shifted as the tech industry is now finding itself entangled in his escalating trade disputes.
Recently, European Commission President Ursula von der Leyen hinted at the possibility of imposing “a levy on the advertising revenues of digital services” if tariff discussions with the United States falter. This scenario diverges sharply from the expectations of tech leaders like Mark Zuckerberg, who had anticipated a more favorable stance under Trump’s administration.
In Zuckerberg’s view, Trump was positioned to serve as a formidable presence to challenge the European Union’s stringent regulations. However, tensions between the US and EU continue to intensify, especially with impending fines against Meta and Apple for alleged violations of the Digital Markets Act.
In a somewhat ironic twist, Elon Musk’s standing in the US has paradoxically decreased alongside his vocal support for Trump. Nate Silver recently noted that Tesla’s share price has taken a considerable hit, plummeting by over a third this year. Moreover, due to tariffs, Tesla has eliminated the option for Chinese consumers to purchase new, US-made vehicles.
TikTok, in particular, is facing significant challenges due to Trump’s intensified trade tariffs against China, with the app’s fate becoming increasingly uncertain in the US market. Responding to inquiries this week, a spokesperson for China’s commerce ministry stated that the government opposes actions undermining market economy principles and infringing on corporate rights.
“Until that issue is resolved, there won’t be much communication,” commented Adam Foroughi, CEO of AppLovin, one of the companies pursuing a deal for TikTok. The complicated market landscape has made it difficult for AppLovin to gauge shareholder sentiment regarding its proposal, as noted by Foroughi in comments to Bloomberg.
This week serves as a notable reminder of the tech industry’s immense reach and influence, where major companies often become pawns in geopolitical strategies. In periods of stability, the tech sector’s power can yield positive outcomes, but when tensions rise, these same entities find themselves vulnerable to scrutiny and attack.
In related news, there have been significant developments regarding personnel in the tech sector:
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Source
www.theverge.com