Trump’s Tariffs Shake Up the Tech Sector
057 - Industry Insight IB (TMT)
Trump’s Tariffs Shake Up the Tech Sector
President Trump's newly imposed tariffs on China and paused tariffs on Canada and Mexico are significantly impacting the tech sector and the broader TMT industry in the U.S. and globally. The 10% tariff on Chinese imports, particularly affecting electronics, semiconductors, and cloud hardware, is driving up costs for major U.S. tech firms. Additionally, the removal of the de minimis exemption for low-cost imports from China means that previously duty-free shipments—many used by e-commerce and cloud providers—are now subject to tariffs, increasing costs and potential delays.
Beyond cost increases, these tariffs are exacerbating geopolitical tensions, with China launching an antitrust probe into Google and considering trade restrictions on AI chips in response. This escalation threatens U.S. dominance in AI and semiconductor markets, as companies like Nvidia and Intel face growing trade barriers in one of their largest markets. The tech sector, reliant on advanced hardware and global supply chains, is now facing uncertainty in investment and expansion. While Trump's tariffs are aimed at strengthening U.S. manufacturing, they risk increasing costs, slowing digital infrastructure growth, and diminishing U.S. tech firms' global competitiveness.
(Jan 30) TMT M&A Awards EMEA 2026 Announced
The TMT M&A Awards EMEA 2025, held in London, celebrated outstanding achievements in digital infrastructure mergers and acquisitions across Europe, the Middle East, and Africa. The awards recognized excellence in various categories, highlighting significant deals, advisory firms, and individual contributions within the industry.
Key Winners:
Europe Telecoms Deal of the Year: Orange Spain / Formation of MASORANGE (Spain)
Europe Digital Infrastructure Financing Deal of the Year: Project Optics (Acquisition Financing of TIM’s NetCo)
Europe Fibre Deal of the Year: Telecom Italia Network fixed-line assets
Europe Towers Deal of the Year: Cellnex Nordics
Europe Datacentre Deal of the Year: Vantage Data Centers
Advisory Recognitions:
Digital Infrastructure Financial Adviser – Volume: JPMorgan
Digital Infrastructure Legal Adviser – Volume: Linklaters
Digital Infrastructure Financial Adviser – Value: Citi
Digital Infrastructure Legal Adviser – Value: Linklaters
Why Should We Care?
For investors and financial institutions, these awards showcase where capital is flowing—with major deals in fiber networks, data centers, and telecom infrastructure, signaling continued demand for digital expansion. The recognition of firms like KKR, Citi, BNP Paribas, and Linklaters reflects who the major players are in high-value digital asset transactions.
For CEOs and corporate strategists, the awards reveal the biggest trends in digital transformation, such as the growing focus on fiber networks (Telecom Italia deal), towers (Cellnex Nordics), and hyperscale data centers (Vantage Data Centers). These are critical assets as enterprises and governments race to scale cloud services, AI computing, and next-gen mobile networks.
At a broader level, these awards emphasize that digital infrastructure remains a prime investment area in a world increasingly dependent on AI, cloud, and high-speed connectivity. Companies and investors ignoring these shifts risk being left behind in the next wave of technological disruption.
(Feb 10) Elon Musk Leads Bid to Gain Control of OpenAI
Elon Musk and a group of investors have made a $97.4 billion unsolicited bid to acquire OpenAI’s controlling nonprofit, escalating his long-standing rivalry with CEO Sam Altman. The bid challenges OpenAI’s $40 billion fundraising round led by SoftBank, which values the company at $300 billion.
Musk’s offer exploits OpenAI’s complex governance, where a small nonprofit legally controls its for-profit arm. Accepting the bid would set a high market value for the nonprofit’s control, complicating OpenAI’s transition to a fully for-profit model.
Altman and OpenAI’s board, closely aligned, dismissed Musk’s bid, while regulators in Delaware and California reviewed OpenAI’s governance changes. Meanwhile, Trump-backed AI investments further influence industry power dynamics. Musk’s move, though unlikely to succeed, forces OpenAI to address its governance and could raise costs for Altman’s long-term plans.
(Feb 4) WWT Acquires Softchoice in $1.3bn ($1.8bn CAD) Deal
World Wide Technology (WWT) is acquiring Softchoice in an all-cash transaction valued at C$1.8 billion. Under the agreement, WWT will purchase all outstanding common shares of Softchoice at C$24.50 per share. The deal will be executed through a statutory plan of arrangement under the Canada Business Corporations Act, requiring shareholder approval in March 2025. The transaction is expected to close in late Q1 or early Q2 2025, subject to regulatory approvals. A termination fee of C$49 million applies if Softchoice accepts a superior offer.
Financial & Legal Advisors:
Details on financial and legal advisors were not disclosed.
Buyer Background:
Founded in 1990, WWT is a U.S.-based global technology solutions provider specializing in AI, cloud, cybersecurity, and digital transformation.
The company serves large public and private organizations, combining strategy, execution, and partnerships to drive innovation.
This acquisition aligns with WWT’s goal of expanding its AI and cloud capabilities while strengthening its footprint in North America.
Seller Background:
Softchoice is a Canadian IT services and software provider with a strong presence in the North American mid-market.
The company focuses on software, cloud, cybersecurity, and AI solutions, catering to commercial and medium-sized businesses.
By joining WWT, Softchoice gains access to a larger customer base, global infrastructure, and expanded enterprise solutions, positioning it for greater market impact.
Implications on IB & Industry:
This acquisition highlights the ongoing consolidation trend in the IT services sector, particularly in cloud, AI, and cybersecurity. For investment banks, it signals increased M&A activity in digital transformation, creating advisory opportunities as tech firms seek strategic acquisitions. The deal also strengthens WWT’s competitive position in North America, intensifying competition with major IT service providers like Accenture and CDW. As tech giants continue expanding their capabilities, the transaction reflects broader industry trends of scaling through acquisitions to meet growing enterprise IT demands.
