Trump’s new tariffs hit Silicon Valley hard: Will tech’s support pay off?

Since Trump’s second inauguration, the combined market value of the five biggest U.S. tech companies — Amazon, Apple, Google, Meta, and Microsoft — has dropped 22%, down to $10 trillion. The tech-heavy Nasdaq index is down 21%. These losses follow Trump's deregulation of other sectors while tightening control over Big Tech.

Executives’ outreach efforts fall flat

Meta’s Mark Zuckerberg, Google’s Sundar Pichai, and other executives have made multiple trips to the White House to lobby the administration. Zuckerberg has reportedly pushed for a settlement in the FTC’s antitrust case against Meta. But policy experts say these efforts may be misguided. “They give him everything, and he promises nothing,” said Gigi Sohn, a former FCC adviser. Even though tech leaders endorsed and donated to Trump, the administration has not offered the exemptions or deregulation they hoped for.

Antitrust pressure escalates

Far from backing down, Trump has intensified antitrust scrutiny. He appointed Gail Slater, a vocal critic of tech monopolies, to lead the Justice Department’s antitrust division. The FTC, under new chair Andrew Ferguson, is pushing ahead with its landmark case against Meta, targeting its past acquisitions of Instagram and WhatsApp. While Zuckerberg has sought to settle, Ferguson indicated only the president could ultimately decide the agency’s direction.

Trump’s mixed signals on AI and crypto

Though federal research funding for emerging tech has been cut, the administration has kept a light regulatory touch on artificial intelligence. Big Tech firms recently submitted policy recommendations urging the government to stay out of the way. In another shift, the crackdown on the crypto sector has been rolled back, benefiting firms like Andreessen Horowitz, a major investor in digital currencies.

Immigration fears return

Trump’s clampdown on immigration is sparking fresh concerns in Silicon Valley. Tech firms, which depend heavily on foreign talent, fear restricted access to skilled workers. The possibility of further tightening visa programs threatens to disrupt hiring pipelines and innovation.

Tariffs may backfire on consumers

Tech leaders warn that the latest tariffs could lead to higher consumer prices and reduced investment. “These tariffs will raise consumer prices and will force our trade partners to retaliate,” said Gary Shapiro of the Consumer Technology Association. “Americans will become poorer because of these tariffs.”

Trump’s closeness to Musk stands out

While many in tech feel the squeeze, Elon Musk may be an exception. He remains a close adviser to Trump and is expected to benefit from that proximity. Musk’s businesses — including Tesla, SpaceX, and X — could be in a strong position to influence future regulatory decisions and receive favourable treatment.

A one-way relationship?

The industry’s pivot toward Trump, from open hostility in his first term to strategic support now, has yet to yield clear returns. Despite their public endorsements, campaign donations, and private lobbying, tech companies are navigating a political climate increasingly shaped by tariffs, legal battles, and executive unpredictability.