As Donald Trump's first year of unpredictable tariffs drew to a close in 2025, major technology firms largely acquiesced rather than resisted, opting for deals and donations amid rising costs and legal uncertainties. From Apple's golden gift to the US securing stakes in chipmakers, the industry navigated a chaotic landscape of threats and negotiations. With Supreme Court challenges looming, the sector braces for more disruptions in 2026.
The year began with Trump imposing 10-25 percent tariffs on imports from key partners like Canada, China, and Mexico in February, warning Americans of 'a little pain.' Industry groups quickly cautioned that consumer tech prices would rise. By April, tariffs expanded to all trading partners, based on disputed deficit calculations that even targeted uninhabited penguin-populated islands.
Apple faced early pressure when Trump threatened a 60 percent tariff on Chinese imports. The company pledged $500 billion in US investments, but Trump persisted, promising American-made iPhones—a notion analysts deemed 'impossible at worst and highly expensive at best.' In May, he singled out Apple with a potential 25 percent tariff on non-US manufactured iPhones, a novel move against a single firm. Tensions eased in August after Apple presented Trump with a gold statue engraved with a 'Made in USA' stamp and Tim Cook's signature, celebrating a fictional 'Apple American Manufacturing Program.' Trump then dropped the demands.
Attention shifted to semiconductors. In August, Trump demanded Intel CEO Lip-Bu Tan's resignation, leading to a deal granting the US a 10 percent stake in the company. Intel's SEC filing highlighted risks like shareholder dilution and potential lawsuits. TSMC rebuffed a September push to relocate half its production to the US. October saw Nvidia and AMD agree to remit 15 percent of revenues from advanced chip sales to China, with Nvidia later upping it to 25 percent for its H200 chips—moves experts questioned for undermining national security goals.
The TikTok saga resolved in December when ByteDance agreed to a US majority stake and algorithm licensing, following months of resistance. Trump suggested the app could become '100 percent MAGA' under new owners.
Broader impacts included halted low-value imports from sites like Shein and Temu, disrupting USPS deliveries. Manufacturing jobs declined, with 42,000 lost since April per government data. Lawsuits mounted, including from Costco, seeking up to $1 trillion in refunds if the Supreme Court curtails Trump's use of the International Emergency Economic Powers Act. Justices appeared skeptical during arguments, though Justice Amy Coney Barrett noted reversal could be 'messy.'
Looking ahead, threats of semiconductor tariffs and 'tariff stacking' loom, potentially hiking costs dramatically. Elon Musk warned in December that such policies drive manufacturing abroad, but Trump remains committed. Tech firms, fearing contract losses, have donated to Trump's funds rather than confront him directly.
