Trump tariffs: Silicon Valleyโ€™s bet on Trump isnโ€™t paying off | Vox

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Why the Tech Right Backed Trump

Silicon Valley tech billionaires, many previously critical of Trump, supported him due to promised regulatory relief, lower taxes, and a belief in his pro-business policies. They saw the Democratic Party as a financial threat, citing concerns about crypto regulations, antitrust enforcement, and proposed tax increases on unrealized capital gains.

Trump's Trade War Undermines Economic Growth

Trump's tariffs have negatively impacted startups relying on Chinese inputs, caused IPO cancellations, and eroded the value of major US tech companies. The tariffs have depressed consumer confidence, deterred business investment, and potentially pushed the US into recession.

  • The dollar's status as the world's reserve currency is threatened, potentially leading to higher borrowing costs and lower purchasing power.
  • Trump's trade policies have damaged America's diplomatic credibility, leading some allies to consider China a more reliable partner.

Trump's Cuts to Government Spending

Trump's cuts to federal funding for research and development, particularly in promising areas like mRNA vaccine research, are hindering technological progress and economic growth. Further cuts to the Department of Energy and the FDA are also negatively impacting energy production and drug development.

Loss of Scientific Talent

Trump's policies are driving away skilled labor, particularly foreign scientists and researchers, through visa revocations and an overall hostile environment. This exodus is further hindering American innovation and economic competitiveness.

No High-Minded Case for Trump

The article concludes that the tech right's support for Trump rests solely on narrow self-interest, failing to align with their initially claimed concerns about America's economic and geopolitical future. The lack of positive outcomes from Trump's policies is evident.

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