What Trump’s 2025 Tariffs Mean for the Tech Industry, AI, SEO, and Web Design

In 1930, the U.S. passed the infamous Smoot-Hawley Tariff Act, raising tariffs on over 20,000 imported goods. It was meant to protect American businesses and farmers during the Great Depression, but instead, it backfired, sparking international retaliation and worsening global economic conditions.

Fast forward to 2025, and we’re seeing another round of sweeping tariffs, this time under President Donald Trump. These new tariffs, 34% on Chinese imports, 20% on European goods, and a blanket 10% import tax on all countries, are stirring fears of a new economic slowdown. While they’re different from Smoot-Hawley in origin and global context, the potential fallout could be equally disruptive, especially for the tech industry, artificial intelligence (AI), SEO, and web design.

However, it’s important to consider that these effects may only be short-term disruptions. The larger strategy behind the tariffs is to gain leverage in global trade negotiations. If successful, other nations could be pressured to reduce or eliminate their own tariffs, leading to more balanced and fair trade over time. In this scenario, the United States could emerge with stronger trade terms and a healthier domestic economy, benefiting tech, manufacturing, and digital industries in the long run.

The Tech Industry Is on the Front Lines

Modern technology is built on global supply chains. From chips to circuit boards, software tools to server infrastructure, much of the U.S. tech ecosystem relies on imported components or outsourced development.

With new tariffs:

• Hardware costs will skyrocket. Devices like laptops, servers, smartphones, and networking equipment will become more expensive to manufacture and purchase. Expect smaller tech startups to feel this first, especially those with razor-thin margins.

• Cloud service providers that rely on overseas hardware manufacturers may have to raise prices, making services like AWS, Azure, or Google Cloud more costly for agencies and developers.

The Smoot-Hawley Tariff Act didn't just increase costs, it restricted trade and slowed innovation. We could be facing a similar scenario if retaliatory tariffs emerge and importers pass costs to consumers and businesses.

Artificial Intelligence Development Could Slow

AI research and development thrives in a globally connected ecosystem. U.S. companies often rely on:

• Chinese-made GPUs and processors for training large models

• European partners for compliance tools and privacy-centric AI workflows

• International talent, often working remotely or through offshore teams

Trump’s tariffs could impact:

• AI model training costs, as importing high-end GPUs becomes more expensive

• Global collaboration, as tensions rise between the U.S., China, and EU countries

• Startups and SaaS platforms, which may struggle with higher infrastructure and operational costs

In short, AI innovation could slow, and the U.S. risks losing its edge to less restricted international competitors.

SEO Agencies Could Face Rising Tool and Labor Costs

SEO agencies depend heavily on:

• International freelancers and virtual assistants

• Paid tools like SEMrush, Ahrefs, Screaming Frog, and AldoMedia SEO Score which are often developed outside the U.S.

• Third-party services like web crawlers, AI-driven content generation tools, and analytics software

If tariffs affect tech services or lead to digital trade restrictions, expect:

• Subscription fees to rise

• Outsourcing to become more expensive

• Agencies to pass costs to clients

Just like in the 1930s, where trade restrictions limited access to goods, today’s digital tools and talent could be the new bottlenecks.

Web Design: A Ripple Effect from Cost to Client Expectations

Web design companies could be hit in several ways:

1. Software Licensing – Tools like Adobe Creative Cloud, Figma, Sketch, and even CMS plugins may go up in price if tariffs affect their parent companies.

2. Hosting and Infrastructure – If costs increase for cloud services, many hosting providers may adjust their prices, leading to higher recurring costs for web clients.

3. Client Budgets – If small businesses and startups start tightening their belts due to inflation or reduced consumer spending, they may delay or downsize web projects.

4. Remote Workforce – Many web developers, designers, and QA testers work from overseas. Tariffs and digital trade disputes could make that harder or costlier.

What Should Digital Agencies and Tech Professionals Do?

1. Diversify Vendors: Relying on one country for software or hardware? Look for alternatives in other regions.

2. Embrace Open Source: Tools like WordPress, GIMP, and open-source AI models may become more attractive if proprietary tools become cost-prohibitive.

3. Educate Clients: Make sure clients understand how these tariffs could impact their project costs and timelines. Transparency builds trust.

4. Automate & Optimize: Use automation to reduce manual labor, and improve workflow efficiency to protect your margins.

Final Thoughts

While the Smoot-Hawley Tariff Act of 1930 and Trump’s 2025 tariffs exist in very different economic worlds, they share a common thread: the risk of global economic fallout. The web, SEO, and tech industries are far more interconnected than they were in the 1930s. Tariffs no longer just affect factories, they now threaten digital innovation.

That said, the long-term impact of Trump's strategy could be positive if these policies succeed in bringing other nations to the table. If global tariffs drop in response, the U.S. could find itself with better trade conditions, stronger domestic manufacturing, and a competitive advantage in both physical and digital markets.

As tech professionals, it’s critical to stay informed, agile, and strategic. The decisions made today could shape the future of digital business for years to come.