November 8th 2016 was the day when Donald John Trump was elected as the next president on the United States and the UK went wild. So why will this affect UK businesses, or will it at all?
Now that Trump is in the house and taking control over US policies, it has given us chance to look at how the most powerful and influential person on the planet will affect the whole world in the next steps he chooses to take.
Trade Partners
The United States is the UK’s biggest trading partner on both imports and exports. In November 2016 alone the trade exports were reported at £29.3 Billion with a 9.4% increase on the month before. There has also been a reported $44.4 Billion of imports from United States putting them at the forefront of our trade deals.
At the same time as this, Donald Trump’s own website stating his trade policies, leaves no mention of the UK within it and merely focuses on China as the lead role in trade.
Getting Over the Bumps
With many bumps in the road from the start of his election campaign, Trump’s quest for presidency was much like the UK’s results with Brexit. With an immediate effect on the global economy, the same pattern occurred with USA’s finances as the UK’s and stocks plummeted. Although they are stable for the meantime, they experienced the same uncertainty that Great Britain did back in June.
It is this uncertainty that could tarnish the UK’s partnership and really effect the smaller businesses.
Uncertainty and Policies
With Trump comes a lot of uncertainty within his words and what he is actually going to implement across the US and the whole world in fact. Throughout his whole campaign, his ideas and policies have been far from clear cut which not only make the public uncertain but also the stock markets.
One noticeable uncertainty within his words are the two contradicting statements of…
Putting up trade barriers so that the US is more independent
UK will see a boost in trade deals with US post-Brexit deal
Which do you believe?
Trump’s aims, whichever he chooses, will revolutionise the trade deals that many countries have worked for years to build. With a strong partnership in Britain, China and Germany, it seems that Britain is set to be unaffected or in fact, better off in the long run. It may take some time for us to see the real changes as Trump will be ending his presidency as Britain leaves the EU but it is sure that is Trump keeps his promises, then we could be in line for a bright future in trade deals.
On the other hand, we could see a negative effect take place if he sticks to his first promise and does actually put barriers in place in the trade industry. If this takes place, there will be an increasing cost for both imports and exports within USA’s financial reach, therefore having a negative influence on the UK economy.
Fluctuations for SME’s
International trade deals will take the hit the most when Trump is in power. Those working domestically will not see much change, i.e. your smaller businesses as they will be effected by Brexit much more that the trade issues.
Whichever route is taken with the economy it is certain that the UK will face uncertainty because of both Brexit and the new presidency together.
If you are dealing internationally, all that the team here at Coleman and Co can suggest is that you sit tight through this trying time. As Europe looks unstable and the US somewhat the same, if not more, it might be beneficial to look at other trade deals in the process.
Get in Touch
If you are uncertain as to how stable your business is throughout these trying times, then get in touch with the team here at Coleman and Co by calling 028 9266 3599. With accounts preparation services, cash flow forecasting and business start-up assistance, Coleman and Co are able to assist you in your business path to success.