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President Trump – What will it mean to UK small businesses?

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The US Presidential election was of huge interest to the UK business community, especially as the United States is often viewed as a leader of trends in the UK and other countries across the world.

As news of the Donald Trump’s election was announced, the UK markets immediately fell, although they largely recovered soon after. Experts believe that as global markets recover from the impact of the election, the instability may affect consumer confidence in the UK, which could result in a further small cut in the Bank of England base rate.

A period of uncertainty

In the aftermath of the vote for the UK to leave the European Union, small and medium enterprises are once again facing uncertainty, although it may be possible that President-elect Trump is willing to make a trade deal with the UK. If this is the case, it will be good news for Theresa May, the UK Prime Minister, as she attempts to demonstrate that the UK can make trade deals with other countries outside the EU following Brexit. Doing business with Trump may also strengthen the position of the Prime Minister with the remaining members of the EU.

Donald Trump has no previous experience in the world of politics though, and certainly none in international politics, which won’t increase consumer confidence. Until the President has the opportunity to demonstrate the experience he will gather around to support him, the markets may struggle to show real confidence in his leadership.

Green technology

The UK is recognised as a leader in green technology, with leading advances in science to offer. However, the concept of global warming has been dismissed by Trump, which will possibly mean that his administration won’t be encouraging the reduction of carbon emissions. This may impact on the UK companies that export green technology to the US, or are planning to in the future.

What can businesses do to prepare?

Just as UK businesses are waiting to see what will happen following Brexit, it may be wise to adopt the same stance in the wake of the presidential victory for Trump. The main concern for UK business will be the promise of a trade deal with the US, now that the UK is leaving the EU. A management accounting service will be able to help a company to prepare for the best and worst of the Trump presidency.

If you would like to discuss what the changing Western world may mean for your company, contact us to arrange an informal meeting.