Yesterday it was announced that Donald Trump was elected as President of the United States. This victory saw him take up his second term in office, after being kicked out for 4 years by Joe Biden.
As the Trump administration prepares to take office once more, business leaders all over the UK will be wondering what it means for the UK. But what areas could be affected?
What Trump Policies Could Affect UK Businesses?
The US-UK relationship has been a strong one for many generations. However, Trump’s ‘America First’ philosophy could mean some policies that backfire for UK businesses. Some of these include:
Trade tariffs: One of the ways Trump is planning to improve the US economy is by increasing tariffs on international exports of up to 20%. This could have huge impacts for UK businesses looking to trade in the US.
Dollar strength: Not a policy per-se, but Trump’s investment and focus on the economy could mean the dollar becomes stronger. This can affect British businesspeople looking to invest in the US or set up offices there, making it more expensive.
Stock prices: Investors will be looking to put their money in economies that are projected to grow over the next few years. This could see more international investors invest in American stocks and less in UK ones, again having an adverse effect on publicly listed companies in the UK.
To find out more about how UK businesses are reacting to a trump government, we asked the experts. Here’s what they had to say:
Our Experts
- Nic Conner, Partner at Parisi Consulting
- Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates
- Asma Bashir, Co-founder of Centuro Global
- Mouloukou Sanoh, CEO and Co-Founder of DeFi Innovator MANSA
- Amr Adawi, Co-CEO and Co-Founder of MetaWealth
- Simon Geale, Executive Vice President Procurement at Proxima
- Helen Child, Founder and CEO of Open Banking Excellence (OBE)
- Kit Cox, CTO and Founder of Enate
- Danny Scott, CEO and Co-Founder of CoinCorner
- Kamil Kluza, Co-Founder and COO of Climate X
- Kate Leaman, Chief Market Analyst at AvaTrade
For any questions, comments or features, please contact us directly.
Nic Conner, Partner at Parisi Consulting
“The primary concern will be over tariffs. Trump adheres to a philosophy of ‘economic nationalism,’ which entails imposing a 20% tariff on all U.S. imports and 60% on goods from China to encourage manufacturing within the U.S. While these tariffs are almost inevitable, we can take some comfort from comments by Elon Musk, who is expected to join the Trump administration. On the Joe Rogan podcast, Musk suggested that the best approach to introducing tariffs is gradual.
Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates
“A Trump victory creates significant challenges and uncertainties for the UK tech sector. In the short term, heightened tariffs and trade barriers could raise costs and inflation, impacting UK firms with ties to US supply chains. The risk of escalating trade tensions could also slow investment and disrupt cross-border collaboration, particularly in tech.
“Looking ahead, several key areas face potential disruption. In the semiconductor space, Trump’s policies could hinder global supply chains, which many UK firms rely on for cutting-edge technology. Trump has indicated that he may not follow through with investment commitments of the Chips Act, and any shift in US policy could have a far-reaching impact, limiting collaboration and access to essential chips components.
“The rise of AI also faces an uncertain future. With figures like Elon Musk influencing Trump’s tech agenda, the regulatory landscape could shift unpredictably, raising concerns around data privacy, ethical standards, and the pace of innovation. Meanwhile, Trump’s stance on cryptocurrency may provide an unexpected boost. With the U.S. potentially taking a more lenient approach to crypto, UK firms in this space could see increased opportunities as they look to expand into less-regulated markets. As the US shifts focus back to fossil fuels, global priorities on green innovation may also lose ground, leaving the UK to drive forward climate tech advancements with other nations.
“On immigration, UK tech firms may find opportunities to attract top talent from the US, as tightening immigration policies could make it more difficult for skilled workers to stay or enter the country. This could make the UK a more attractive destination for global tech talent. Overall, today’s news is bound to lead to seismic shocks across the economic landscape, and the UK tech sector should brace for impact.”
Asma Bashir, Co-founder of Centuro Global
If Trump resumes his previous approach, with tariffs prioritising domestic production, UK tech firms dependent on U.S. imports, particularly hardware and software, could see cost increases. For an industry focused on innovation and scale, the imposition of tariffs and restricted trade could affect UK firms’ agility in the market, especially those working closely with U.S.-based suppliers or clients. At the same time, such policies may encourage UK tech companies to diversify their supply chains or explore alternative markets, perhaps even boosting the domestic production of essential technology components.
Immigration policies are another pivotal area. Trump’s restrictive stance could drive more international tech talent to the UK if U.S. entry barriers tighten. The UK has long been a hub for global talent, and if barriers are eased here while tightening in the U.S., the UK could attract top minds in software engineering, AI, and data science. The Labour government’s focus on inclusivity and streamlined visa processes could amplify this effect, especially for companies looking to strengthen their teams in key growth areas.
Finally, Trump’s potential deregulation of AI could create an interesting contrast for British tech. While some in the U.S. may see reduced AI regulation as a gateway to accelerated innovation, the UK’s regulatory approach can offer a balanced alternative, one that fosters innovation while ensuring ethical oversight. This may create room for collaboration between UK and U.S. firms, especially if companies seek to balance agility with responsibility in deploying AI solutions.
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Mouloukou Sanoh, CEO and Co-Founder of DeFi Innovator MANSA
“If Republicans follow through on their promises, this could be a win-win for the DeFi space. Their commitment to safeguarding digital asset rights and resisting central bank digital currencies creates a more welcoming environment for blockchain innovation. Clear regulatory frameworks would not only protect investors but also encourage broader participation in tokenised real-world assets. For companies like MANSA, this shift enables us to expand our offerings and drive forward the adoption of blockchain technology in transforming traditional asset markets.”
Amr Adawi, Co-CEO and Co-Founder of MetaWealth
“The Republicans have won the Presidency and Senate (likely the House), and have promised to be Crypto / DeFi / Blockchain friendly.
“Republicans have been vocal opponents of creating a central bank digital currency (CBDC), arguing it could enable government surveillance and control over Americans’ financial activities. Instead, they advocated for protecting individuals’ rights to self-custody their digital assets and to transact freely without government interference. Several Republican lawmakers, including Tom Emmer and Patrick McHenry, have introduced legislation limiting the Federal Reserve’s authority to issue a CBDC and preserving private sector innovation in digital assets.
“This pro-stance from Republicans could significantly benefit the RWA tokenisation space. Clear regulatory frameworks protecting digital asset rights would enable broader participation from US investors in tokenised real-world assets. By focusing on investor protection while limiting unnecessary oversight, this approach could accelerate the adoption of tokenised RWAs by:
- Providing clarity for issuers on compliant tokenisation structures
- Enabling more efficient secondary market trading of tokenised assets
- Supporting institutional adoption through clear custody and trading guidelines
- Preserving the innovation potential of blockchain technology in modernising traditional asset markets”
Simon Geale, Executive Vice President Procurement at Proxima
“When Trump first took office in January 2017, the U.S. national debt was approximately $19.9 trillion. By the time he left office in January 2021, the national debt had risen to about $27.8 trillion. This represents an increase of around $7.9 trillion over his four-year term, largely due to tax cuts, increased government spending, and emergency spending in response to the COVID-19 pandemic. Trump has led this campaign with a couple of inflation causing policies namely tariffs and immigration. Should the Fed and bond market respond conventionally this would see higher inflation and cost of borrowing. The interest on the national debt is forecast to double in ten years, which would mean increased taxation for starters.
“Today’s global trade consists of an interconnected web of trade relationships and international supply chains, it’s natural that political change is closely watched by multinational businesses across industries. There is arguably no change of administration in the world that has more of an impact on global trade than in the US. There will be eyes on tariffs and the impact these will have on the global economy, particularly in relation to China. Tariffs will have a significant impact on how emerging economic regions develop and interact. The question for businesses will be whether the tariffs are a cost they can bear, or whether they require a reshaping of their entire supply chain.”
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Helen Child, Founder and CEO, Open Banking Excellence (OBE).
“Donald Trump’s victory along with the evolving Open Banking landscape, presents both challenges and opportunities for UK tech firms with international ambition.
“The Consumer Financial Protection Bureau’s (CFPB) Personal Financial Data Rights Rule, brought in under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, enshrines consumers with the right of access to their digital financial data and the ability to share it securely with third parties. In The Transatlantic Index USA, Open Banking Excellence (OBE) analysed the impact and market opportunity of this groundbreaking rule.
“The U.S. Open Banking market, projected to reach $35.79bn by 2031, opens up huge opportunities for emerging UK companies to export their expertise into the US. However, the changing U.S. political landscape has ushered in a new era of uncertainty for those seeking to establish a US foothold until the nature of the new Trump administration’s approach becomes clearer.”
Kit Cox, CTO and Founder of Enate
“Trump’s win could bring real issues for the UK tech sector, especially around AI and data regulations. With the EU moving forward on robust legislation to balance AI’s role and data use across society, this should be top of the agenda for the new president. If the US doesn’t follow suit, it could significantly impact UK companies working with US partners. Here in the UK, we’re already navigating evolving regulations under a new Labour government, and staying aligned with the US on AI standards is key. Without clear alignment, we could see extra compliance costs and slower innovation.
“In the event where regulations diverge, UK firms still need to operate withing the regulatory framework set by the EU. Although technically we stand on our own post Brexit, many of the fastest moving UK tech firms like ours trade extensively with Europe and need to dance to their tune. Whilst we can still access and sell into the US market, these regulations are different to GDPR where adhering to the standard created competitive advantage (European businesses were more secure than our US competitors). AI regulation is different.
“Regulation will rightly somewhat reduce the capability and effectiveness of products designed to support the European market leaving European businesses at a competitive disadvantage to their US counterparts who would largely be growing in the unfettered US internal market.
“Ultimately, while there are also voices in the US, like Elon Musk, advocating for AI regulation, the prevailing anti-regulation sentiment championed by figures like Peter Thiel could lead the US down a different path.
“There is an urgent need for common sense but a huge risk of grandstanding and isolationism.”
Danny Scott, CEO and Co-Founder of CoinCorner
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Kamil Kluza, Co-Founder and COO of Climate X
“While the outcome of the US election may raise concerns about potential tariffs and regulatory changes, we at Climate X believe the impact on the UK tech industry, particularly in the climate tech sector, could be neutral to positive.
The physical risk agenda is less politicised and remains crucial for businesses globally, regardless of political shifts. Many US firms we work with are international or receive funding from European and APAC investors, who will continue to prioritise climate risk management.
Our focus has always been on driving business value rather than mere compliance. We help our customers make more money, save more money, and build trust with their clients while mainstreaming climate resilience. This value proposition remains strong regardless of political changes.
Ironically, if there’s a slowdown in the transition to net zero, the need for physical risk assessment and management becomes even more pressing. This could potentially increase demand for innovative UK tech solutions in this space.
While we’ll be watching developments closely, we’re confident in the UK tech industry’s ability to adapt and continue delivering value-driven solutions that transcend political boundaries.”
Kate Leaman, Chief Market Analyst at AvaTrade
“Looking ahead, Trump and the Republicans’ electoral triumph is set to cause short-term market gains. The incoming president has historically been a market-friendly candidate, focusing on policies that benefit corporations and investors. A Trump administration would likely continue lowering corporate taxes, boosting large corporations like Apple or Amazon and helping to drive their stock prices higher.
“Along with more market-friendly policies, Trump’s win is also likely to lead to aggressive deregulation, with the combination driving stronger short-term gains across US equities, especially in sectors like industrials, financials and healthcare – all of which thrived during his first term. A Republican win will also likely mean less regulation and more support for fossil fuels, benefiting traditional energy companies and presenting a challenge to the renewable sector.
“Trump’s protectionist trade policies may also stir up some inflation, which would nudge the Federal Reserve towards higher interest rates. This stance could also create pressure for foreign currencies and lead to ripple effects in international markets, as well as with global trade. For instance, Trump has a rocky relationship with China so we could expect some volatility in these markets.”
For any questions, comments or features, please contact us directly.
