DW Weekly #206 – Impact of Trump’s tariffs on tech industry

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DW Weekly #206 - Impact of Trump's tariffs on tech industry 22

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Dear readers,

Last week brought tectonic shifts in the global economy following the US tariffs dismantling the existing trade order. So far, the tech and digital sectors have been indirectly affected mainly by the price increase of hardware components, including semiconductors and servers, imported from China, Taiwan, and Vietnam. Apple and Samsung already announced a rise in the prices of smartphones.

However, the impact on the US tech sector and the global digital economy can worsen if the trade war escalates. In such a scenario, the European Union and other countries will likely introduce digital services taxes and stricter regulations of the US tech giants, as analysed by Jovan Kurbalija in Algorithms confront tariffs: A hidden digital front in an emerging trade war.

Forthcoming economic uncertainty may lead to a rise in the value of Bitcoin as a safer than other options for saving wealth and investment.

TikTok bidding war intensified as Amazon entered the fray with Trump’s last call to resolve TikTok’s future. However, the TikTok deal stalled amid US-China trade tensions.

Amid geopolitical tensions, cybersecurity has risen in relevance. The UK and Japan passed new cybersecurity bills that protect critical infrastructure. As of 1 April, Switzerland requires critical infrastructure operators to report cyberattacks within 24 hours to the National Cybersecurity Center.

The pushback against strict AI safety regulations continues as the industry has lobbied South Korea for a less strict AI Basic Act than the European Union.

Microsoft is scaling down the development of new AI data centres as a sign of lower dynamism in this field and precautionary measures against AI bubble.

Ghibli-style images overwhelmed OpenAI servers and OpenAI layers as they opened the question of copyright breaches. The EU AI Act’s Code of Practice clarified the regulation of using copyrighted materials to develop AI models.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team


RADAR

Highlights from the week of 28 March – 4 April 2025

DSA act 1

Coimisiún na Meán, leading DSA enforcement in Ireland, faces varying interpretations of the law among EU members, making a unified approach crucial to regulation.

Meta hub in London

Notable authors such as Kate Mosse and Tracy Chevalier are participating, with the demonstration organised by the Society of Authors (SoA).

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US lawmakers are advancing stablecoin legislation aimed at increasing transparency, securing reserves, and strengthening the dollar’s role in digital payments.

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The logical and analytical foundations laid by the Lwów–Warsaw School significantly support both the technical and ethical dimensions of AI transformation.

TikTok Amazon

Key interested parties now include Amazon too, expressing its interest in line with its social media expansion ambitions, and a consortium led by OnlyFans founder Tim Stokely, proposing a model…

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The Active Cyber Defence Bill would enable pre-emptive and active cyber measures by military and law enforcement, mandating incident reporting from critical infrastructure, and allowing limited data collection to monitor…

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What started as a fun artistic trend has quickly turned into a technical nightmare for OpenAI, with its CEO pleading for a break as servers buckle under pressure.

tiktok

Talks about spinning off TikTok’s US operations have hit a wall after China signalled disapproval following President Trump’s new tariff hikes.

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Big Tech’s energy needs are pushing the nuclear renaissance as AI models become increasingly power-hungry.


READING CORNER
Algorithms confront tariffs featured image

President Trump’s tariffs on goods have intensified global trade tensions, notably with the EU. However, they largely ignore the critical sector of digital services, where the US holds a strong advantage. In response, European nations have proposed digital services taxes (DSTs) aimed at American tech giants, framing them as necessary for fiscal fairness. The collapse of OECD negotiations has prompted unilateral digital taxes across various countries, escalating the trade conflict. This shift towards digital taxation could redefine international trade diplomacy, posing challenges for US tech dominance and potentially leading to retaliation that affects both goods and digital markets.

Digital sovereignty p1 blog featured image

The concept of digital sovereignty has gained prominence. This discussion examines the tension between territorial politics and transborder digital operations, highlighting how demands for autonomy reflect a desire to navigate external influences within an interconnected digital landscape. As sovereignty claims become entwined with security narratives, the necessity to socially anchor digital sovereignty policies is emphasized.

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The Lwów–Warsaw School of Philosophy, a pioneering movement in Polish thought, has made lasting contributions to philosophy highly relevant to modern AI. The school’s work in logic and semantics provides essential tools for AI, while its analytical approach offers insights into ethical challenges.

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An ermine plays peek-a-boo from a rotting tree. Cute? Maybe. But it might also be a calculated survival tactic. Aldo Matteucci explores provocation in the wild – and its unsettling parallel in human behaviour.

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How Ghibli-inspired AI art went viral, exploring mainstream AI trends, creativity impact, and ethical concerns raised by Hayao Miyazaki.

UPCOMING EVENTS
commission on science technology and development
7-11 April 2025

The twenty-eighth session of the Commission on Science and Technology for Development (CSTD) will take place from 7 to 11 April 2025. 

4 A visual representation of structured digital governance
9 April 2025

The briefing will discuss the role of civil society organisations in digital governance and AI developments. 

gitex africa
15 April 2025

Jovan Kurbalija will discuss how AI can help African development and preservation of local knowledge and traditions. 

geneva human rights platform
23 April 2025
The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons. 

DW Weekly #205 – Turkish protests

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Dear readers,

In this week’s edition, we untangle the clash of free speech, power, and platforms, during the mass protests in Türkiye, where many X accounts have been suspended, digging into what it means for global diplomacy, content policy, and the future of online speech.

IN FOCUS: Turkish protests – Freedom of speech has taken centre stage this week, with Türkiye’s streets erupting in mass protests and Elon Musk’s platform X again under fire. With account suspensions, government requests, and a tech giant caught between free expression and compliance, all eyes are on how X navigates this storm.

RADAR: UN General Assembly adopts resolution on WSIS+20 review modalities; Trump weighs tariff cuts to secure TikTok deal; EU softens AI copyright rules; SoftBank leads massive investment in OpenAI.

READING CORNER:

IN FOCUS

Turkish protests

The recent suspension of many accounts on X (formerly Twitter) amid Türkiye’s civil unrest has provoked a complex debate surrounding freedom of speech and content moderation policies. Another case in the row shows the complex balance social media platforms must maintain between upholding free expression and adhering to governmental regulations, particularly in politically volatile environments.

THE CONTEXT: What’s happening in Türkiye?

The turmoil in Türkiye was sparked by the arrest of Istanbul’s mayor, Ekrem İmamoğlu, a potential candidate in the Turkish presidential election on behalf of an opposition party. Charged with alleged corruption and ties to terrorism, İmamoğlu’s detention led to widespread protests across major Turkish cities, including Istanbul, Ankara, and İzmir. Demonstrators viewed the arrest as a politically motivated attempt to sideline a key opposition figure ahead of the 2028 presidential elections. The government’s response was swift, resulting in over 1,100 arrests, including several journalists.

Amid the escalating protests, the Turkish Information and Communication Technologies Authority reportedly requested X to block more than 700 accounts, including those of news organisations, journalists, and political figures. These accounts primarily shared information about protest locations and organised demonstrations. Yusuf Can, the Wilson Center’s Middle East Program coordinator, noted that many suspended accounts were ‘university-associated activist accounts, basically sharing protest information, locations for students to go.’

However, X’s actions were inconsistent. While it allegedly suspended some accounts selectively, the platform publicly rejected the broader demand to block over 700 accounts, labelling the request as ‘illegal’ and asserting:

‘X will always defend freedom of speech everywhere we operate.’  ​

X’s partial compliance with these requests has been criticised, especially given Elon Musk’s previous assertions of championing free speech on the platform. Despite Musk’s stance, X generally does respond to governmental content removal requests, with the company’s transparency report indicating an 86% compliance rate during the second half of 2024 in Türkiye.

Either way, the suspension of accounts during the Turkish protests raises critical questions about the responsibilities of social media platforms. While platforms like X operate globally, they must navigate a complex web of local laws and regulations. In Türkiye, laws mandate that social media companies appoint local representatives and comply with content removal requests under threat of fines or bandwidth reductions. This legal framework places platforms in a challenging position, balancing governmental compliance while trying to preserve user rights and freedom of expression.​

To conclude:

The measures taken by X amid Türkiye’s protests underscore a constant challenge: content policy isn’t unchangeable; it’s a continuous legal dispute between big tech, national power and the voice of the people. Therefore, as social media platforms play an integral role in political discourse and activism, their content moderation policies and responses to governmental requests will remain under intense scrutiny. However, these common controversies demand transparent policies enabling companies to uphold the principles of free expression while curbing harmful content and being mindful of the complex landscape of content policies and political dynamics.

Find the full dig.watch analysis here or in our READING CORNER!

For more information on cybersecurity, digital policies, AI governance and other related topics, visit diplomacy.edu.

Related news:

Elon musk SEC Twitter lawsuit

Legal experts are divided over whether the SEC’s lawsuit against Musk is justified or politically motivated.

RADAR:

UN General Assembly adopts resolution on WSIS+20 review modalities

On 25 March 2025, the UN General Assembly (UNGA) adopted the resolution defining the modalities for the overall review of the implementation of the outcomes of the World Summit on the Information Society (the WSIS+20 review). 

Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

Visit dig.watch now for the latest updates and other topics!

Marko and the Digital Watch team


RADAR

Highlights from the week of 21-28 March 2025

US Congress 2

By allowing platforms to govern their digital spaces, Section 230 supports freedom of expression and guards against excessive censorship.

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Amid European legal shifts, developers of general-purpose AI models are finding clearer ground, as the latest draft of the EU AI Act’s copyright guidelines embraces practicality and proportionate enforcement.

softbank openai data centre Japan

As ChatGPT’s features continue to capture the public’s imagination, OpenAI is close to sealing a colossal funding deal led by SoftBank that would double its valuation within months.

malaysia exports semiconductors to china

The US is investigating whether banned AI chips reached Chinese firm DeepSeek.

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Financial authorities are split on crypto regulation, with the Central Bank pushing for a ban and the Ministry of Finance considering limited access for top investors.

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Apple has avoided penalties as the EU concludes its inquiry into iPhone browser options, following regulatory adjustments by the company.

nvidia chip on china flag

Demand for Nvidia’s H20 chips is surging as Chinese tech giants, including Tencent and Alibaba, rush to adopt AI models, straining already limited supplies.

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The V3 model from DeepSeek offers enhanced performance metrics and positions the Chinese startup as a growing rival to major AI players like OpenAI and Anthropic.

china US

China rejected US accusations in the intelligence report, accusing Washington of using outdated Cold War thinking and hyping the ‘China threat’ to maintain military dominance.

crypto crime bitcoins and handcuffs black and white but not too dark

Bitcoin has dropped from $106,000 to $83,000 amid rising crypto crime, with analysts predicting further declines in the coming weeks.


READING CORNER

X Turkey protests freedom of speech 1
dig.watch

Freedom of speech has taken centre stage this week, with Türkiye’s streets erupting in mass protests and Elon Musk’s platform X again under fire. With account suspensions, government requests, and a tech giant caught between free expression and compliance, all eyes are on how X navigates this storm.

climate flow data
www.diplomacy.edu

Every March, yellow rain coats European cities, tinting cars and sidewalks with a golden hue. This striking phenomenon occurs when Saharan dust, carried by wind, travels thousands of kilometres and is washed down by rain. I learnt about it through conversations at the World Meteorological Organisation (WMO), where my office is located. In 2021, when 180,000 tonnes of dust swept across Europe, a webinar with Dr Slobodan Nickovic, creator of the ‘dust model’, deepened my understanding of this interplay between nature, science, and diplomacy, leading to reflections you can read in the original blog.

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www.diplomacy.edu

Only 2% of wild bees do 80% of the pollination. Should we still save the other 700 species? The debate is not just ecological – it’s moral vs economic.

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www.diplomacy.edu

No system works without standards – not cities, not cyberspace. As the metaverse grows, it needs rules that go beyond code. Read Part 6 of the new metaverse blog series: UN 2.0 and the Metaverse: Are We Seeing What Is Possible?

BLOG featured image 2025 48 Nuclear renaissance
www.diplomacy.edu

As AI’s energy demands surge, nuclear power is emerging as a key solution to sustain its growth while minimising carbon emissions. Tech giants like Microsoft, Google, and Amazon are investing heavily in nuclear energy to power AI-driven data centres, signalling a potential nuclear renaissance in the age of AI.

UPCOMING EVENTS

Africa AI Summit
dig.watch

The Centre for the Fourth Industrial Revolution and the Ministry of ICT & Innovation, in collaboration with the World Economic Forum, will host the inaugural Global AI Summit on Africa…

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www.diplomacy.edu

Training for the Republic of Serbia Commissioner for Information of Public Importance and Personal Data Protection The representatives of the Commissioner for

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www.diplomacy.edu

Digital Sovereignty and the open internet: Can they coexist? The Internet Governance Project (IGP) in collaboration with the Quello Center will gather

Brendan Carr to lead FCC in Trump’s push for deregulation

President-elect Donald Trump has nominated Brendan Carr to lead the US Federal Communications Commission (FCC). Carr, an FCC commissioner since 2017, is a familiar figure within the administration and has aligned his policy views with Trump’s conservative agenda, particularly concerning free speech and deregulation. Often criticising tech giants like Alphabet and Meta, accusing them of stifling conservative voices, he has called for revisiting Section 230, which shields platforms from liability over user content. Carr advocates for changes to ensure anti-discrimination norms apply to tech firms and supports laws similar to those in Texas and Florida, enforcing platforms to accept diverse viewpoints. The US Supreme Court, however, is cautious about potential First Amendment conflicts, preserving platforms’ rights to moderate content.

Carr’s proposals extend to involving tech companies in funding the Universal Service Fund, which supports communication infrastructure, arguing their financial involvement is justified. Historically, tech firms have resisted this initiative, citing their substantial investments in infrastructure. Additionally, Carr opposes net neutrality, viewing it as restrictive to innovation. His experience includes contributing to repealing net neutrality under previous FCC Chairman Ajit Pai, with Carr arguing that alleged negative impacts, such as increased costs, did not materialise.

Removing Chinese telecom tech from US networks on national security grounds is also part of Carr’s agenda, seeking additional funding to replace it due to security concerns. He also labels TikTok a national threat, though Trump has softened his stance.

One of Carr’s crucial policy stances is to improve rural internet access through technologies like Starlink’s low-Earth orbit satellites, considering them cost-effective solutions. His agenda pushes for a deregulatory approach, reducing local government and regulatory barriers in telecom infrastructure to encourage growth and innovation.

Carr’s tenure is anticipated to bolster free speech and minimise regulation, aligning with Trump’s advocacy. However, his policies will likely stir debate, especially around balancing constitutional rights and industry demands. This approach suggests a potentially transformative phase for the FCC, marked by contentious discussions over free speech, regulation, and innovation under Trump’s forthcoming presidency.

Internet shutdowns spike in Q1 2024

In the first quarter of 2024, Pulse has documented 22 deliberate internet shutdowns across 12 countries, with some ongoing since 2023. This figure matches the peak seen in 2021 during Myanmar‘s military coup, highlighting a concerning trend. India has been the most affected, with nine shutdowns, followed by Ethiopia and Senegal, each experiencing two incidents. Over half of these shutdowns have been localised, impacting specific regions within countries including Chad, Comoros, Cuba, Iran, Pakistan, Palestinian Territory and Russia.

Among the recorded events, nine led to nationwide disruptions lasting from hours to months, affecting approximately 297 million internet users and resulting in over 910 days of downtime. These shutdowns have inflicted significant economic losses, amounting to USD 565.4 million in GDP, as reported by Pulse. Such disruptions hinder societal progress, hamper economies, and undermine the stability of the global internet infrastructure.

Why does it matter?

Championing an open and easily accessible internet, advocates stress the significance of prioritising policies that ensure uninterrupted connectivity. Governments and policymakers globally are encouraged to endorse efforts to protect the internet, acknowledging its pivotal role in nurturing economic development and providing opportunities for individuals to exercise fundamental human rights in the digital era.

Turkish court jails 16 Kurdish journalists over alleged terrorist links

A Turkish court has jailed 16 Kurdish journalists for “belonging to a terrorist organisation” and their close cooperation with the pro-Kurdish Peoples’ Democratic Party (HDP) in Diyarbarkir. They were also accused of spreading terrorist propaganda and since 2016 several hundred HDP members have already been detained.
Nazim Bilgin, the president of the Journalists’ Association of Turkey warns that: “We are living in the darkest days of our country as far as press freedom is concerned.” It is also alarming that Turkey has jailed more reporters than most other countries in the previous decade, according to the Committee to Protect Journalists.

India blocks 16 YouTube-based news channels for spreading fake news.

The information and broadcasting ministry decided to block 16 YouTube-based news channels for spreading fake news related to national security issues and India’s foreign relations. The blocked accounts include 10 YouTube channels from India and six from Pakistan. A statement by the ministry explained that these digital news channels had failed to provide the information they were requested, as required under the new IT rules in the country. Consequently, the government invoked its emergency powers granted under the IT rules.