How Will Trump Presidency Affect the Tech World Feb 28, 2017Views: 554
The most disruptive elections in American history concluded with a surprising victory of Mr. Donald Trump as the 45th US President. He is an eminent businessman of the country and a person known to put forward his opinions strongly. In his massive election rallies, he made many statements and promises about the improvement of job conditions in America. There are many sectors where Trump Presidency may have a dramatic influence, including the tech world. Here are discussed the key actions planned by the new President and their impact on the industry as a whole.
Tech Mergers and Acquisitions:
The scrutiny will increase for software technology service vendors and digital companies. This development was announced in the wake of a merger between two leading conglomerates, viz. Time Warner and AT&T. The Trump administration has decided that acquisitions of service vendors with digital companies will not be encouraged as it may lead to absorption of power in a few hands.The Issue of Net Neutrality
This issue hovered over the tech world for some time now. Net Neutrality refers to seamless access to the internet with equality of speed and content. The president hasn’t issued any new policies related to digital copyrights. Under the regime of Mr. Barack Obama, the FCC had put a ban on slow internet connections. Another issue fueled by his statements is freedom of the internet. He has expressly voiced his opinion on introducing liberal laws for suing the outlets publishing negative content online. These regulations will curb the open internet across the USA with stricter laws governing the content shared on any online platform.
Restrictions on Talent Immigration:
President Trump has mentioned that he is completely opposed to the illegal immigration by H-1B Visa holders, especially in the leading tech companies. Despite announcing better packages for legal immigrants, this decision will largely affect the American tech giants hiring skilled workers from abroad due to which foreign workers will become complicated and expensive, hence hiring Americans will be only alternative left.
Funding for R&D in Tech Industry:
Under the Obama administration, many efforts were undertaken by the government for federal funding of research and development in the tech industry. There were initiatives like National Strategic Computing for setting up labs, working on supercomputers, etc. However, no signs of progress are made by the Trump administration in this regard. Though, it is too early to contemplate any such move since this government is still in its nascent stage.
Changes in Taxation and Trade Laws:
Taxation has always been under the eye of President Trump from his campaigning days. He has declared to cut the tax rates massively from 35% to 15%. This move will promote investments in the USA-based businesses, leading to the generation of more employment for the countrymen and will lead to the upliftment of the American economy. At the same time, the administration is planning to impose higher taxes on imported goods. He has asked the tech companies to bring their operations back to the country. However, this move may negatively affect the industry since US tech corporations are leading this space globally due to the liberal trade policy. Their revenue generated is higher in the overseas markets. Hence, new policies will raise the costs of selling their products across the world.
The issue of cyber security is worrying the tech industry since a long time. The need is constant and felt to fortify the security of this space in the USA. Hence, President Trump has shown a steadfast commitment to curb the hacking attempts and cyber threats from the stateless hackers and countries like China and Russia. He is looking to remove these vulnerabilities in the best manner possible.
Since the election of Mr. Trump as American President, all eyes are centered on his policies and tech agendas. There has been no clarity in this space till now. A lot of implications will depend on the implementation of the announcements that he made in his campaigns. Until then, we can only wait, watch and hope for the best to come.
Author Biography: Arun Goyal is Founder at Octal Info Solution, web & mobile app development company. Technology innovation and trends insight come easy to Arun with his thorough knowledge in the domain. A leader in his own rights, his grad-friends see him as an avid researcher and a technology evangelist. See him talking about ideas, trends and technology as a part-time author to this blog. Follow him on Twitter & Facebook.
You need to be logged in to comment