Donald Trump vs IT: What to expect?

The election of Donald J. Trump is a real godsend for almost every industry in the USA that receives advantages from the expanding economy policy of the new President’s team, except IT sphere.

Mr. Trump’s election victory pulled down the shareholdings of a raw of incumbent companies from IT sphere in a matter of couple days. In fact, shareholdings of such companies, as Facebook, Amazon, Netflix and Alphabet broke down at least for 1,9%, simultaneously with Nasdaq 100 index falling down for 1,6%.

It is not weird to observe such a reaction of stock markets — taking to account Mr. Trump’s pre election campaign, he has got a couple of surprises for the IT sphere. According to professional economists, who are in the loop of the Trump platform, all possible short-term prospects for the sphere of technologies or as it is mainly defined, Silicon Valley, are pretty obscure. Quoting Mr. Gregory Autry, the assistant professor at USC’s Marshall school of business, “Donald J. Trump definitely is a threat to the model, because his platform is focused on punishing China for its trade abuses and returning manufacturing to the U.S.”

In fact, if Trump’s plan to increase the tax for goods from China, it will not forecast anything good for any American company relying on the global supply chain.

An additional strike was done against the IT sphere by dint of Trump’s immigration policy.

As it is a widespread information, IT branch of the United States is a multinational sphere, which depends on immigrants, it becomes clear, that tech’s hard times approach.

According to his pre election company, one of the main ideas is to suppress the unlawful immigration and to protect the Americans from the unremunerative foreign job applicants. Moreover, Mr. Trump negatively remarked the H-1B visa, which allows recruiting qualified scientists, engineers, professionals in IT sphere, who have unique skill sets.

The main point in Trump’s policy against H-1B is that it has a ridiculously low entry barrier, which in consequence allows American companies hiring less ambitious (in the financial aspect of this word) professionals instead of U.S. graduates. Among other things, through his campaign speeches of former Disney’s IT department professionals took place. According to their words, they had to hire foreigners, tutor them, but after, all foreigners were dismissed.

The solution for the H-1B problem is simple, according to Donald Trump, and it is within the increase of H-1B price for companies. This solution suggests hiring foreigners in exceptional circumstances.

Another problem for companies in the Silicon Valley will be Trump’s idea to cut down imports from China and to force American companies to relocate their production assets to the United States. This will become a real threat either to major IT corporations, which have moved their assets to Asia long ago or to startups, the overwhelming majority of which outsource manufacturing of their product to Asian companies. Mr. Trump constantly states: “Buy American, hire American!”. As it is known, Donald Trump repeatedly insists “America first”. Is his vision that bad?

In addition to the latter, it would be important to highlight Silicon Valley leaders’ attempts to take firm stances against this immigration executive order.

Tim Cook, Apple’s Chief Executive Officer expressed his concern over such actions via internal email to employees. He wrote: “In my conversations with officials here in Washington this week, I’ve made it clear that Apple believes deeply in the importance of immigration — both to our company and to our nation’s future. Apple would not exist without immigration, let alone thrive and innovate the way we do.”

It is important to mention, that Steve Jobs’ (Apple founder) father was a Syrian immigrant, Satya Nadella (Microsoft CEO) is an immigrant from India, Sergey Brin (Google co-founder) is an immigrant from Russia, and Sundar Pichai (Google CEO) immigrated from India. So, maybe it is not that bad, that such smart people join the U.S. and co-found companies and corporations which become world-known flagship brands? It is up to new President, though.

In the sense of growing frequency of guilty acts on the part of Muslim immigrants, Trump is completely right. Let us be honest: Donald Trump is worried about his “home”, where harmful saboteurs have settled. For today, there are 7 predominantly Muslim countries, which are banned from the possibility of immigration.

Without a doubt, there is a reason for a malicious joy of the followers of an idea to stiffen the internet control and security. The newly-elected President states, that “it is crucial to reshape the whole cyber defense system of the USA”. Among the commentaries concerning the hacks, thanks to which all the private messaging of his political foes revealed, Trump claimed, that “America has completely lost control over the cyber defense during Obama’s presidency”.

Being completely frustrated with such news, some of IT activists even proposed to withdraw California’s membership in the United States.

Mr. President has particular “favorites” in IT sphere, for whom it will be very hard to find the way of effective cooperation with the new president. The first favorite is Apple. Donald Trump chastised Apple for their outsourced assets, for reluctance to pay taxes in the USA and for operations in fiscal offshores.

After the situation, when Tim Cook refused to help FBI in hacking the iPhone of San Bernardino terrorist, Trump called Americans to boycott the Apple production. Though it is very worrisome for “Apples”, after Trump was elected for the Oval Room Head, Tim Cook sent an internal email to his colleagues and employees, where he said “Do not worry, everything will be fine. We need to move forward” and added, “Apple’s North Star has not changed”.

Mark Zuckerberg, Facebook founder, frequently spoke against Trump’s candidature, Facebook was even accused of rotating false stories in the news feed to get behind Democracy, but Mark denied it, and said, that it is an “insane idea”. After Trump Was elected, Zuckerberg made a close statement: “Americans must work on creating the world they want for their children”.

Satya Nadella shared the optimism with Zuckerberg and Cook and refrained from engaging in politics. Though Microsoft has always shown its diplomatic nature, it reminds of the readiness to fight for the clear and modern policy, highlighting its previous affairs.

Google CEO Sundar Pichai is worried about immigration ban. He distributed a memo, which says, that Google is very upset about the impact of Trump’s order, especially, because it strikes Googlers and their families. Google recalled all their employees back to U.S. before the order came into force, and Mr. Pichai noted, that almost 200 Google employees were directly affected by the immigration ban.

Mr. Trump still has many decisions in front of him. Meanwhile, until decisions are made, companies have time to prepare for his presidency. Anyways, the new president is elected, the new times are coming.

In an unbiased manner, there is nothing illegal or incorrect in Mr. Trump’s anxiety to “Make America Great Again”, where “America first” and American authenticity is above all things.

Only time will tell which come true, but what we all know, is that techies will always stay fantastically inventive, and will always find a way to adapt and improve.

As the latest news from the Silicon Valley informs, the Headquarters of companies develop a backup plan which implies possible resettling their foreigners to the Vancouver-based office in Canada.

As Bloomberg stated in its report, Amazon, Google, and Microsoft already have their offices in Canada for an occasion, when they position workers while the paperwork for life and job in the U.S. is obtaining clearance.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store