Home Business NewsBusinessKiller reasons why a Trump presidency would threaten British businesses

Killer reasons why a Trump presidency would threaten British businesses

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9th Nov 16 10:39 am

What the experts said

Trumpโ€™s triumph is yesterdayโ€™s US elections isnโ€™t good news for businesses, experts have said.

Doing business with the business will get tougher after Trump becomes incharge and UK firms will be forced to look elsewhere for expansion.

While work permits will also become a problem, the London property market may be able to attract more US buyers.

Christian Stadler, of Warwick Business School, who is Professor of Strategic Management, said: โ€œTrumpโ€™s victoryย brings a similar uncertainty as Brexit did. We simply donโ€™t know which of his campaign promises will translate into policy.

โ€œFor UK business it is a particularly big threat as trade with Europe is likely to decline as a result of Brexit, so companies have to offset business losses, but the US will also be a more difficult place to trade with.

โ€œTrump has spoken out against free trade, so expect a dramatic rise inย import duty in some industries, such as steel.

โ€œThe negotiations on TTIP are likely to end. As the UK will no longer be in the EU this will not have a direct effect, but suggests that it will be difficult for the UK to negotiate a deal with the US.

โ€œWe can expect substantial investment in US infrastructure, but this is not likely to benefit UK companies as contracts are likely to go to US companies.

โ€œSo what should UK companies do? There are two options: first,ย reduce US business and look for alternatives – this could mean a deliberate decision to shrink. Orย set up subsidiaries in the US, so if a companyย operates in the US itย wonโ€™t be affected by the new trade barriers.

โ€œAnother effect for UK businesses is that it couldย be more difficult to get work permits in the US for UK business people.โ€

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