Trump Administration’s First Week Actions Signal Shift in Tech Policy

In its first week, the Trump Administration issued several executive orders (EO) and other directives, many of which will have significant implications for the technology sector. These include actions relating to US trade policy, artificial intelligence, digital financial technology, the shutdown of TikTok, and the Department of Government Efficiency. Also impacted are pending regulations, now paused, and already-issued regulations that have not gone into effect, which may be reconsidered by the leadership of their issuing agencies. Notably, the Trump Administration has not revoked Biden Administration EOs on cybersecurity to date, although action may be forthcoming.

Below, we provide summaries of key actions relevant to tech policy.

Executive Order on Regulatory Freeze Pending Review

On January 20, President Trump issued an EO directing all executive departments and agencies not to propose or issue new rules until an agency or department head appointed by President Trump approves the rule. This could affect several notable proposed rules, including DHS’s proposed rule on Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) requirements (see our Legal Update) and HHS’s proposed rule to modify the Security Standards for the Protection of Electronic Protected Health Information.

The EO also directs departments and agencies to “consider postponing for 60 days from the date of this memorandum the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise.” This includes possibly reopening the comment period for these rules. Notable rules that have not yet taken effect and could be impacted include the Justice Department’s rule on bulk data transfers (see our Legal Update), the Commerce Department’s rule on connected vehicle supply chains (see our Legal Update), and the Commerce Department’s rule on export controls for artificial intelligence diffusion (see our Legal Update). 

Presidential Memorandum on America First Trade Policy

On January 20, President Trump issued a Memorandum on his Administration’s trade policy, focusing on the establishment of a “robust and reinvigorated trade policy that promotes investment and productivity” and launching a sweeping review of existing US trade and economic policies. The Memorandum directs several agencies to investigate and make recommendations relating to trade deficits and unfair trade practices and review US trade agreements, the de minimis exemption, and export controls, with most recommendations due to the President by April 1, 2025. It also directs Treasury to investigate the feasibility of establishing an External Revenue Service to collect tariffs and duties. With respect to the rulemaking on connected vehicles discussed above, the Memorandum directs the Commerce Department to “review and recommend appropriate action with respect to the rulemaking” and “consider whether controls on ICTS transactions should be expanded to account for additional connected products.” And the Memorandum directs Treasury to consider whether its rule to regulate outbound investments (see our Legal Update) includes “sufficient controls to address national security threats” and whether EO 14105, Addressing United States Investments in Certain National Security Technologies and Products in Countries, should be “modified, or rescinded and replaced.”

Notably, the Memorandum does not specifically direct the imposition of new tariffs, which are expected in future executive action. For technology companies with supply chains outside of the United States, these actions could impact the cost, or even the feasibility, of importing products or sub-components from certain countries.

Replacement of Biden Executive Order on Artificial Intelligence

On January 20, President Trump issued an EO revoking the Biden Administration’s sweeping EO on AI. Then, on January 23, President Trump issued his own EO on AI, stating that it is the “policy of the United States to sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.” The Order directs White House officials and relevant agencies to develop an “action plan” to achieve the policy. In addition, it directs these parties to review prior government actions taken in response to the Biden Administration’s EO and suspend, revise, or rescind actions that may be inconsistent with the new policy.

This direction will likely pause and reverse actions taken under the former EO related to labor and civil rights, but it’s unclear how it may impact the safety and security provisions, including Commerce’s proposed rule on reporting the development of powerful AI models and acquisition of large-scale computing clusters. It may also impact whether the U.S. AI Safety Institute continues under the Trump Administration, as well as what that entity’s responsibilities will be.

Executive Order on US Leadership in Digital Financial Technology

On January 23, President Trump issued an EO outlining his Administration’s policy and actions to “support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.” This policy includes “providing regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries.” The EO revokes a Biden Administration EO on digital assets and establishes the President‘s Working Group on Digital Asset Markets, consisting of relevant agency heads and White House officials. It directs the Working Group to propose a regulatory framework governing digital assets and orders members of the Working Group (including Treasury, the Justice Department, and the Securities and Exchange Commission) to identify current regulations affecting digital assets and make recommendations on modifying or rescinding these regulations. In addition, the EO rescinds a significant, SEC-imposed restriction on banks and other companies holding custody of crypto-assets on behalf of users (formerly known as “SAB 121”) and prohibits federal agencies from taking actions related to a Central Bank Digital Currency (CBDC). For further information, see our Legal Update.

Executive Order Halting Shutdown of TikTok

On January 20, President Trump issued an EO instructing the Attorney General “not to take any action on behalf of the United States to enforce the [Protecting Americans from Foreign Adversary Controlled Applications Act] for 75 days from the date of this order, to permit my Administration an opportunity to determine the appropriate course of action with respect to TikTok.” The EO cites the “unfortunate timing of section 2(a) of the Act — one day before [Trump] took office as the 47th President of the United States,” which “interferes with [President Trump’s] ability to assess the national security and foreign policy implications of the Act’s prohibitions before they take effect.”  

Executive Order Establishing the Department of Government Efficiency

On January 20, President Trump issued an EO establishing the Department of Government Efficiency (DOGE), with the mandate to modernize federal government technology and software and to maximize governmental efficiency and productivity. The EO renames the already existing United States Digital Service as the United States DOGE Service (USDS). The Order directs the USDS Administrator to “commence a Software Modernization Initiative to improve the quality and efficiency of government-wide software, network infrastructure, and information technology (IT) systems” and to “work with Agency Heads to promote inter-operability between agency networks and systems, ensure data integrity, and facilitate responsible data collection and synchronization.” It also directs agency heads to establish a DOGE team within their agencies, ideally consisting of a team lead, engineer, human resources specialist, and attorney.