LinkedIn co-founder Reid Hoffman has once again warned that the tariffs and spending cuts imposed by US President Donald Trump may hurt the US and help China. Hoffman, who is also a venture capitalist, recently claimed that the Trump administration’s tariffs could increase China’s industrial and technological strength, potentially undercutting US competitiveness in artificial intelligence. This comes after Hoffman warned that the US risks straining its alliances—something that could have consequences for American businesses, including in the tech sector, in March. At that time, he argued that a lack of diplomacy may give international competitors an edge over US companies.
What LinkedIn co-founder Reid Hoffman has now said about Trump tariffs
In an interview with Bloomberg Television, Hoffman said the tariffs are “in fact helping China across its entire industry,” noting that if Europe comes to see China as a more “stable trading partner” for manufacturing and technology, it will “create better global markets for China and worse for the US.” He even cautioned that, without course correction, these policies could hand Beijing the upper hand in next-generation tech.
Hoffman has even voiced concern about DOGE member Elon Musk’s drive to make changes to the federal government and trim its budget. In the interview, he warned that cutting funding for science labs, research initiatives, and universities would undermine America’s technological edge.
“Science is one of the ways we got our American technology advantage. It’s like saying, hey, let’s put concrete overshoes on both legs and run a marathon,” he added.
Efforts by the Trump administration to scale back the government’s role in funding and steering AI research have become a contentious topic in the industry, with critics warning that such cuts could hand China the upper hand, Bloomberg reported.
Michael Kratsios, the White House’s science and technology director, has also emphasised the need for “smart choices” in funding, including a reassessment of how research dollars are allocated.
