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Silicon Valley's top tech titans may have bet big on Donald Trump’s second term, but they’re finding little return on their investment. Despite high-profile donations, public endorsements, and glitzy appearances at inauguration events, the Trump administration has taken a tough stance against the very industry that helped bankroll it.
Tech giants, including Apple, Google, Meta, Amazon, and Microsoft, are now facing a slew of challenges. New tariffs are slamming supply chains and raising production costs. Cuts to federal research funding and tighter immigration rules are threatening the flow of talent into the U.S., particularly in areas vital to innovation. The administration is also ramping up regulatory scrutiny, with the Department of Justice and FTC preparing fresh antitrust actions. Meta is set to go to trial next week, while other companies remain under investigation.
The financial toll is already visible: the combined market value of the top five tech firms has dropped 22% since January, tracking closely with a broader Nasdaq decline.
Elon Musk, who donated over $300 million and served as an advisor, joins other industry leaders like Mark Zuckerberg, Jeff Bezos, Tim Cook, and Sundar Pichai, each of whom contributed at least $1 million to Trump’s inauguration. Yet, aside from a few leniencies, such as delayed sanctions on TikTok and loosened crypto regulations, the sector has seen little policy favor.
A key signal of the administration’s intentions came with the appointment of Gail Slater, a vocal tech critic, to lead the Justice Department’s antitrust division. Meanwhile, White House officials remain firm on steep tariffs, especially hurting Apple, which produces most of its iPhones in China. The jump in import duties from 20% to 34% is likely to dent both profit margins and consumer pricing.
“These tariffs will raise prices for consumers and provoke retaliation from our trade partners,” warned Gary Shapiro of the Consumer Technology Association.
With information from The New York Times.
