The first actions of a new presidential administration can define the course of the country. With Donald Trump's arrival to the presidency, cities, businesses, and states are waiting to see how his policies might impact the economy, technology, and opportunities for innovation.
Trump's campaign promises include mass deportations, imposing tariffs of up to 60% on Chinese goods, and repealing key laws such as the CHIPS Act and Science, The Inflation Reduction Law and Bipartisan Infrastructure Act.
1. Mass deportations and their impact on the agricultural industry
Trump has promised to deport up to 20 million immigrants, almost double the estimated number of undocumented immigrants in the U.S. According to the Pew Research Center, by 2024 this policy could severely affect key sectors such as agriculture, where a large part of the workforce comes from undocumented workers.
If these deportations take place, the agricultural industry could face an unprecedented crisis, with labor shortages leading to increased food prices and potential shortages in communities across the country.
2. Increased tariffs, trade wars, and job losses
Trump's plan to raise tariffs to 20% on imports from trading allies like France and Germany could trigger trade retaliation and a decline in trade with the US. Studies by the Institute for Macroeconomic and Business Cycle Research estimate that these measures could cost Germany 300,000 jobs and Canada up to 500,000 jobs in Ontario alone.
Mexico, a key trading partner in the production of automobiles and agricultural products, also faces threats of 25% tariffs, which could worsen food shortages in the U.S. in the wake of deportations.
3. Risk to the technology industry and job creation
The CHIPS and Science Act, which allocates $280 billion to subsidize semiconductor manufacturers in the U.S., could be eliminated. This law has spurred the construction of manufacturing plants in states such as Arizona, Texas, New York, and Ohio, creating thousands of jobs.
Although funds already committed will be difficult to reverse, the lack of support could hinder the growth of the technology industry, affecting everything from manufacturing jobs to highly specialized positions in advanced technology.
4. Reversal of investments in clean energy and its consequences
The Inflation Reduction Act, with its $370 billion investment in clean energy, could be reversed, which would reduce incentives for private investment in renewable energy and negatively impact job creation in the sector.
The elimination of programs like the Greenhouse Gas Reduction Fund and the Methane Emissions Reduction Program It could hinder access to clean energy and increase dependence on fossil fuels, affecting the environment and public health.
The first 100 days of the Trump administration could bring drastic changes to the US economic and technological landscape. Uncertainty surrounding trade, immigration, and energy policies is generating concern among business owners, workers, and investors.
Businesses and communities must be prepared to adapt to change and develop strategies to mitigate potential negative impacts on their industries. Collaboration between the private and public sectors will be key to addressing the challenges ahead.
Original article by Holly Quinn | January 20, 2025 published in Technically
