Trump’s trade fight puts Silicon Valley and global internet services at risk
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President Donald Trump’s push to reshape global trade has overlooked the export of digital services. a major American strength. Experts warn that this blind spot could have serious consequences for Silicon Valley and the broader digital economy. Allianz Trade, an intelligence firm that tracks global trade risks, published a report on Tuesday based on a survey of 4,500 companies worldwide. It aimed to measure the impact of rising trade tensions and warned that a focus on the United States’ trillion-dollar goods deficit threatens to overlook the fastest-growing part of global trade, the “invisible exports” of financial and digital services. Though tracking these services is challenging, the report cites estimates showing a US digital trade surplus of at least $600 billion, including digital advertising, video streaming, cloud platforms, and online payment services. Digital surplus by firm (USD bn). Source: Allianz Trade Global Survey 2025 The report calls this “hidden trade immense”. It says these invisible exports have greatly outpaced the growth of goods exports over the past two decades, yet they do not show up in standard trade statistics. Allianz Trade warns that if Washington does not “rethink trade policy and narratives” to begin tracking these services more closely, it could undermine one of America’s innovative companies and massive data infrastructure, just as the president is negotiating deals with much of the world. The report stresses that overlooking this trade could leave US firms exposed to foreign retaliation. Furthermore, US digital exports now make up about 3.6% of all trade worldwide and continue to grow quickly. These unseen exchanges add to US trade revenues without filling any container ships. In today’s economy, routers and data centers are as crucial as ports and factories for keeping America in a leading position. Yet, President Trump’s current plan requires countries hit by his reciprocal…
Filed under: News - @ May 21, 2025 12:20 am