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

Economic Impact and Labor Market Analysis

The economic data supporting Trump’s position reveals striking wage disparities that have reshaped American technology employment. A senior software developer in California commands $150,000 or more annually, while identical roles in India cost companies between $20,000 and $40,000. Research demonstrates that when offshore wages reach approximately 10% below U.S. levels, offshore employment accelerates by 13.1 percentage points compared to domestic hiring.

The scope of this transformation extends far beyond the call center outsourcing wave of the early 2000s. Modern offshoring encompasses high-skill white-collar positions including software development, financial analysis, legal operations, human resources, engineering, and data analytics. The pandemic accelerated this shift dramatically, with U.S.-headquartered multinational corporations expanding their offshore workforce by 32% since 2019, compared to just 16.7% growth in their domestic employee base.