UK entrepreneurs have mixed views on Trump agenda
Two thirds of British entrepreneurs see Donald Trump’s second term in office as “good for business” as it could provide opportunities for expansion and growth, but fears linger of the impact of US trade policy.
Helm, a group of 400 UK entrepreneurs with a combined revenue of £8bn, found that while 66 per cent of the group’s members were optimistic about Trump’s pro-business stance, concerns remain over his protectionist trade measures.
Andreas Adamides, chief executive of Helm, said: “This bullish sentiment likely reflects Trump’s pro-business policies, which many entrepreneurs believe could provide opportunities for growth.”
David Atkinson, founder of ad agency Agency Space was cautious, said: “Longer term, this is not a good thing. But I think the US and UK economy will receive a short-term bump.”
Adamides said: “Our members are sharply divided on the broader implications of Trump’s presidency.”
Meanwhile, founder of SBC Shelley Hope said: “I don’t think Trump will be good for business. He creates a lot of chaos and uncertainty, which makes markets volatile, everyone more anxious, and planning more difficult.”
During his campaign, Trump proposed business tax cuts in the US but also advocated for significant tariffs on imports. Last night the President suggested an additional 10 per cent levy could be slapped on Chinese imports from next month.
Analysts warn that a Trump-led trade war could result in a short recession and push inflation above three per cent.
Darren Jones, chief secretary to the treasury, publicly said that he doesn’t believe the new president would place tariff on UK goods yet the UK government will have to prepare for such an eventuality.
UK business and trade secretary Jonathan Reynolds said that Trump’s time in office will “be a challenging time for anyone that’s responsible for trade in a big economy”.
As the UK exports an estimated £60bn worth of goods to the US, this could lead to inflation throughout the international supply chain.
In his first presidency, Trump imposed 4.1 per cent of US imports tariffs initially on China, before extending to the EU.
He also placed particular tariffs on steel and aluminium from the UK.