'Oh god': Tech industry reacts to Trump’s victory

What will a protectionist President mean for the global tech sector?

Donald Trump’s second term comes at a turbulent time for the world – will he add more fuel to the fire? IT leaders share their thoughts with Computing.

Financial markets lit up after the election was decided, although that was likely no matter who won – investors love certainty.

That may be in short supply over the next four years, though: Trump is known for changing his mind quickly and without forethought.

Asked for comment, one CIO simply said, “Oh god,” but there were more nuanced takes.

“Precarious position”

Mark Ridley, technical co-founder of Reed.co.uk and consulting CIO, told us US trade barriers could have harsh worldwide consequences. He pointed out that the National Institute of Economic and Social Research has suggested that “UK growth could be halved if Trump does impose the tariffs he has threatened.”

Kate Leaman, chief market analyst at AvaTrade, said Trump’s protectionist trade policies are likely to raise US inflation (and thus interest rates), which could create pressure for foreign currencies.

Mark believes this protectionist tendency is “the most concerning” thing for tech firms, with the President Elect having clearly set out his intent to establish more barriers to trade from areas he doesn’t think are friendly enough to US interests. He has already said the EU will have to “pay a big price" for not buying enough American exports.

The threat of repatriating US companies, which Trump attempted in his previous term, "could have significant impacts on Europe.”

“Ireland, for instance, had just three companies paying a third of the total corporation tax bill in 2023. In 2024, it's reported to that 10 companies pay 50%. Most are overseas tech companies, like Apple, Google and Microsoft.

“This rather highlights the precarious position Europe and the UK are in: we are almost entirely dependent on the US for our core technologies. Nearly every business uses some combination of Microsoft, Google or Apple technology.

“Where Russia has Yandex and mail.ru, and China has Tencent, Alibaba and Weibo, Europe is startlingly absent of tech alternatives to US firms. If the borders are drawn more tightly...and relationships with both the UK and EU grow more frosty, as Trump himself has indicated, we are startlingly exposed.

“The irony of Brexit is we wanted to 'take back control' but remained entirely dependent on US companies for technology.”

But, there is a bright spot: Trump is likely to invigorate deal-making in the USA, which tends to feed through to other regions. This would be especially welcome in the UK, which is Europe’s largest startup market but saw venture investment plummet 43% in Q3 this year.

“The FT reports that Trump's second term is likely to reignite M&A, private equity deals and venture capital exits, which will be very welcome fuel to the fire of British and European entrepreneurialism as our markets tend to lag along behind, and trace the path of, the US behemoth.”

“Increased investment and innovation”

Trevor Gordon, Chief Digital & Technology Officer at Save the Children, shared concerns about unpredictability, but also expects market-friendly outcomes.

“Trump’s victory is going to disrupt things for the technology sector in the UK and globally. Fairly quickly we will see less regulation and probably some big tax breaks, which will see increased investment and innovation. We are already seeing this in how the markets reacted after the result.

“Another potential impact is that, globally, this might also mean certain players become more prominent. As an example, the potential for new US trade policies like increased tariffs on goods from China could impact global supply chains and multi-national partnerships.

“The short to medium term impact remains to be seen. We should see the immediate uplift from fewer regulations, but more unpredictability as a result of impact on global trade.”

“Challenges and uncertainties”

Russ Shaw, founder of Tech London Advocates and Global Tech Advocates, said the US election outcome “creates significant challenges and uncertainties for the UK tech sector.” He expects higher tariffs and trade barriers to raise costs and inflation globally, as well as slowing investment and affecting cross-border collaboration.

The CHIPS Act was one of the US tech sector’s most significant economic wins under President Biden, but President Trump may refuse to follow through on its commitments, limiting access to important components.

Grant Neeley, professor of political science at the University of Dayton, Ohio, and director of the university’s cybersecurity unit, said on Computing’s Ctrl Alt Lead podcast that Trump may prefer to “rebrand” the CHIPS Act to be more closely associated with his name.

AI also faces an uncertain future. Trump has signalled he’ll relax oversight of the technology, but that raises concerns around “data privacy, ethical standards and the pace of innovation,” says Shaw.

Kit Cox, CTO and founder of Enate, said, “With the EU moving forward on robust legislation to balance AI’s role and data use across society, this should be top of the agenda for the new president. If the US doesn’t follow suit, it could significantly impact UK companies working with US partners.”

Finally, there is a possibility for tech firms to pick up skilled talent forced to leave the USA by tighter immigration policy – another topic discussed on Ctrl Alt Lead – which "could make the UK a more attractive destination for global tech talent.”

The overall message from IT leaders, then, is “brace for impact.”