The Big Question – January ’25

John Elliott
Chair
Ebac

Trump’s economic plans hold a lot of merit.

He would be right in imposing tariffs, and we should maybe learn some lessons from his boldness.

Both the US and the UK need to foster investment and trade within their own borders, and look to re-address trade balances.

This should not be limited to services, and should include tangible products that people actually use.

By making imports comparable in price to British-made goods, you support manufacturing here, just like Trump wants to do in the US.

And I’m not talking economic theory; I have skin in the game.

My company does around ten per cent of its business in the US.

We account for nearly half of all industrial dehumidifiers sold in the US, so would need to navigate any tariff changes Trump introduces.

But if there is a favourable agreement with the UK, as has been suggested, it would be great for both economies.

While there are valid concerns about market turmoil and potential cost increases, I’m actually very optimistic.

Manufacturing in the UK or the US won’t be safeguarded if it is competing against cheap imports from countries with lower overheads and lower quality thresholds.

What you need is something that drives your own manufacturing sector forward.

Matthew Robertson
Director
Jackson Hogg

Donald Trump’s return to the White House brings renewed focus on international trade and economic policy.

While potential import taxes and shifts in foreign relations create some uncertainty, they also offer opportunities for UK and US businesses to adapt and innovate.

With the UK election, budget and US election concluded, organisations now have greater clarity to plan for the future.

After a subdued back-end to 2024 – marked by limited talent movement and slower growth – US companies are now accelerating recruitment plans for early 2025.

Growth is firmly back on the strategic roadmap, with businesses placing
a strong emphasis on attracting
new skills in areas such as artificial intelligence, emerging markets and fostering diverse talent pools.

Confidence is high in the US, with more professionals seeking new roles and businesses adapting quickly to evolving demands.

By contrast, the UK feels slightly behind in matching this momentum.

However, this creates a window for organisations to learn from US confidence and focus on becoming more agile and resilient.

Businesses that prioritise a combination of adaptability, a skilled workforce and the strategic integration of artificial intelligence will be well-positioned to compete.

Simon Rowland
Newcastle office head
Womble Bond Dickinson

Donald Trump’s election success has stirred a mix of apprehension and cautious optimism regarding the UK’s trading relationship with the US.

His proposed tariffs on imports, particularly from China and Mexico, have sparked fears of potential trade wars and economic downturns.

Yet, some experts argue the UK’s economic growth might only see a minor dip of 0.2 per cent, suggesting there remains room for UK businesses to flourish through exporting.

The renowned special relationship between the US and the UK could be pivotal in alleviating the adverse effects of these tariffs.

Trump’s business savvy, and his grasp of international trade dynamics, might provide unexpected advantages for UK enterprises.

Moreover, the chance of the UK being exempted from certain tariffs, or even benefiting from trade redirected away from China and Mexico, presents intriguing opportunities for growth.

While uncertainties around Trump’s foreign policy persist, the UK’s solid position in global supply chains and its thriving service industry could help navigate these challenges.

Ultimately, Trump’s second term may usher in both hurdles and prospects for the UK’s trading ties with the US.