What Donald Trump’s second term and Elon Musk’s investment signals for the future and the Caribbean

As the US presidential election concludes with Donald J. Trump securing a second term, important questions arise about what this renewed administration might entail, particularly given recent policy directions. For clarity, this column isn’t politically charged; instead, it explores the intersections of business, technology, and politics, where these worlds often collide in unexpected ways.

One of President Trump’s key policy positions has been the imposition of new tariffs on Chinese imports, potentially as high as 60 per cent, intended as a protectionist strategy to strengthen the American tech sector and encourage domestic job creation. However, critics argue that such tariffs would likely raise costs across the tech market, with products like video game consoles potentially increasing by up to 20 per cent and mobile devices by around 26 per cent. Since much of this manufacturing currently occurs in China, repositioning the U.S. as a primary manufacturing hub would require significant effort and investment.

In the final months of the 2024 campaign, billionaire Elon Musk openly backed Donald Trump and the Republican Party, offering substantial financial support to the campaign. Reports reveal Musk contributed around $75 million to America PAC, a pro-Trump political action committee, over three months.

This level of financial commitment naturally raises questions about Musk’s motives and possible expectations from the administration. While his intentions remain speculative, it’s likely that such sizeable contributions are intended to safeguard or advance his business interests under the new administration.

What might be driving Musk’s strong allegiance? To understand, let’s look at the three key pillars of his business empire: Tesla, SpaceX, and xAI.

Starting with Tesla, known for its electric vehicles and energy storage solutions, the company currently faces regulatory scrutiny from various government agencies over concerns that its Autopilot and Full Self-Driving (FSD) marketing may mislead consumers and pose safety risks.

SpaceX, a key venture of Elon Musk focusing on satellite deployment and space transport services, has encountered regulatory scrutiny from the Federal Aviation Administration (FAA) over alleged launch licence violations and delays in approving Starship test flights, resulting in proposed fines and legal disputes. Additionally, environmental concerns have been raised regarding the impact of its launch activities on local wildlife habitats.

Lastly, xAI: Founded in 2023, Elon Musk’s AI startup aims to uncover the universe’s true nature while positioning itself as a competitor to major AI firms. However, it faces regulatory challenges over privacy concerns for using X (formerly Twitter) data without user consent, risks of misinformation from its AI tool Grok, and environmental concerns surrounding its Memphis data centre.

Each of Musk’s enterprises reflects his ambition but faces significant regulatory scrutiny, especially around privacy, misinformation, and environmental impact. Under a renewed Trump administration—known for its historically lenient industry oversight—Musk may find a more favourable environment to pursue these ventures with fewer regulatory hurdles.

The one enterprise most relevant to the Caribbean—and likely to reshape the global telecommunications landscape—is SpaceX. Through its Starlink brand, SpaceX is already legally offering high-speed broadband services in the Caribbean. However, what many may not realise is that, in my view, Starlink could serve as a Trojan horse for Musk’s true goal: becoming the world’s first truly global mobile phone service provider.

What many don’t know is that numerous high-end flagship mobile phones can already connect directly with Musk’s low-orbit satellites, making it possible for users to have a single provider for seamless global roaming. This capability could fundamentally disrupt the traditional telecom industry worldwide, as Musk holds the unique position of providing cost-effective low-orbit satellite coverage. In this scenario, local and regional telecom providers, such as Digicel and Flow, could face unprecedented competition from a single, far-reaching network that offers connectivity without the need for traditional infrastructure or physical footprint.

So, where does this fervent support for Trump come in? In an August 16, 2024, article in The Verge, it was reported that AT&T and Verizon filed complaints with the Biden administration’s Federal Communications Commission (FCC) to block T-Mobile and SpaceX’s plans to connect mobile phones to Starlink satellites. AT&T and Verizon argue that this plan could harm their mobile broadband networks and claim that SpaceX’s request for a waiver of out-of-band emission limits would result in unacceptable interference with their services.

AT&T’s claims of potential interference and degradation if Musk’s satellite mobile service goes live appear unfounded, given that the service is not yet operational. These assertions seem more like legal manoeuvring to protect the dominance of legacy players who, after misreading Musk’s intentions, now feel their business models are threatened by his expansive satellite network. Rather than adapting to this technological shift, they are seeking legal backing from a Biden administration inclined to temper Musk’s influence.

With Trump potentially assuming unchecked power in 2025—and Musk as a key financial figure in his campaign—it seems unlikely that Musk’s ambitions in telecom and beyond will face substantial barriers.

steven@dataprivacy.bb