The once-promising relationship between former President Trump and America's tech industry leaders has come to a halt, experts say. Sweeping tariffs imposed by Trump have caused significant financial losses for Silicon Valley giants, including Apple, Amazon, and Meta (formerly Facebook), marking the end of what some describe as an "awkward alliance."
The tech titans, including Apple CEO Tim Cook, Meta's Mark Zuckerberg, Amazon's Jeff Bezos, and Google parent Alphabet’s Sundar Pichai, initially supported Trump’s policies. Many executives attended Trump’s 2017 inauguration, with Meta and Amazon donating $1 million each to the fund. Tim Cook even made a personal contribution of another million dollars. Their enthusiasm was fueled by Trump’s promises to reduce regulations and slash taxes, which aligned with Silicon Valley’s business goals.
However, the dynamic shifted dramatically after Trump introduced sweeping tariffs targeting major manufacturing hubs like China and Vietnam. The new tariffs, particularly on Apple, increased costs, with some products facing tariff rates up to 46%. For example, the price of an iPhone could rise by as much as 43%, potentially pushing the cost of the highest-end iPhone to a staggering $2,300.
Russ Shaw, founder of Tech London Advocates, explained that the partnership was never a natural fit. “It felt like opportunism on both ends. Trump saw a chance to leverage the tech market, but now reality has set in,” he said.
Apple has been hit hard due to its dependence on Chinese factories for iPhone production, but Vietnam, where Apple manufactures AirPods and iPads, also faces significant setbacks. These tariffs could prompt tech companies to reassess supply chains, potentially shifting production to other regions.
This development highlights the volatility in the relationship between government policies and corporate entities, leaving tech firms navigating new challenges.
