POLITICO Tech Will Trump’s tariffs ‘liberate’ Silicon Valley?
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Apr 3, 2025 
Michael Froman, the President of the Council on Foreign Relations and former U.S. Trade Representative, discusses the fallout from 'Liberation Day' and its impact on Silicon Valley. He explores the uncertainties tariffs introduce for tech investments and supply chains. Froman highlights the ongoing U.S.-China negotiations, particularly concerning TikTok, and the potential regulatory challenges from the EU and China. His insights shed light on how protectionism might reshape American innovation and competitiveness in a rapidly evolving global market.
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Liberation Day's Impact
- Trump's "Liberation Day" tariffs break with 80 years of reduced tariffs, returning to levels not seen in decades.
- This creates uncertainty for businesses, potentially increasing inflation and slowing economic growth.
Tech as a Retaliation Target
- American tech is a significant target for retaliation due to global reliance on U.S. innovation.
- Countries might reduce reliance on U.S. tech, but viable alternatives are often limited due to U.S. dominance.
EU vs. US Tech Approach
- The EU and U.S. have different strengths, with the EU focusing on regulation and the U.S. on innovation, especially in tech.
- The EU's regulatory approach could hinder innovation by discouraging U.S. tech companies from introducing new products in Europe.