Trump Declares War on Tech Outsourcing with Sweeping AI Action Plan Targeting India and China

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Trump’s AI Action Plan and three new executive orders tighten federal AI rules, fast-track data-center permits, and challenge offshoring models tied to India and China. [File Photo]

Critical Policy Shift

President Donald Trump delivered an unprecedented ultimatum to American tech giants at the White House AI Summit on July 23, 2025, demanding they cease overseas hiring practices, particularly targeting India and China. The president’s directive marked a decisive break from decades of corporate outsourcing practices, accompanied by a comprehensive 28-page AI Action Plan featuring over 90 policy measures designed to restore American technological dominance and protect domestic workers.

By Samuel Lopez – USA Herald

The battle lines have been drawn in Silicon Valley. With his characteristic bluntness, Trump issued a stark command: “End corporate outsourcing” and “bring jobs back from India and China.” This declaration represents the most aggressive federal intervention in tech industry labor practices in modern history, targeting what the administration views as systematic exploitation of American workers through foreign labor arbitrage.

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The president specifically criticized major firms for “benefiting from American freedoms while building factories in China, hiring Indian workers, and stashing profits in Ireland, ignoring the welfare of Americans at home.” This sharp rebuke signals a fundamental shift toward economic nationalism in technology policy, with potentially far-reaching consequences for the global tech ecosystem.