Trump’s Trade Policies Intensify Digital Trade Risks, Threatening US Tech and Crypto Market Stability

US President Donald Trump’s trade strategy, while focusing on reducing tariffs on goods, has largely ignored the US’s significant $600 billion surplus in digital services—including advertising, cloud computing, streaming, and payment sectors. Allianz Trade warns this oversight exposes Silicon Valley and the American tech industry to global risks as partners like the EU consider imposing retaliatory digital service taxes and tariffs, threatening the revenues of US tech giants like Amazon, Google, and Facebook. The report notes digital services comprise 3.6% of global trade and are expanding faster than goods, but remain largely unaccounted for in traditional trade measures. Increasing trade tensions may drive US firms to pivot investments to China and Southeast Asia, diminishing tariffs’ protective intent. This climate heightens regulatory uncertainty for digital assets, as the US pursues clearer crypto regulation and investment incentives, like the Bitcoin-focused Investment Accelerator, contrasting with China’s ongoing crypto bans. US and China both hold large storehouses of Bitcoin from legal actions. Experts warn an escalating digital trade war could slow innovation, escalate costs, fragment global tech platforms, and potentially reduce global GDP by up to 5% over the next decade. Such developments could introduce further uncertainty and volatility for the cryptocurrency sector, especially in cross-border payments and digital infrastructure. Crypto traders should closely monitor evolving regulations in the US, EU, and Asia for early signs of disruption to the crypto and tech markets.