Is Trump an Ally to British Business?
- besociety
- Oct 3
- 4 min read
Updated: Nov 21
Trump has expressed on many occasions his love and respect for the United Kingdom, but does this make him a friend to British business? This question is not as straightforward as it seems. Despite having family ties to Scotland, which may sway him to view the country and businesses with more favourability, he has always maintained his ‘America First’ ideals when making deals during his first and second terms so far.
The America First policies brought in by Trump are a way to promote American business and manufacturing, as well as to secure America’s interests on the global stage in matters such as conflict and energy security. The way in which the US has decided to promote American business is through the use of tariffs. Trump stated during his campaign that, if re-elected, he would impose tariffs on every country importing goods to the US. In theory, this would push up the price of goods brought in from other countries, leading to cheaper American-made items being sold on the market. It would also encourage businesses to move their manufacturing to the US to avoid paying heavy fees.
For America, the tariffs have been a success, with several businesses, such as MG, saying that they will be investing heavily over the next few years in manufacturing infrastructure in the US. This comes as countries with large manufacturing bases, such as China, have been hit heavily with tariffs, as the government has consistently increased the rate. What started off as a 10% tariff on Chinese goods in February has ramped up to a 55% rate. However, these tariffs have been put on hold until mid-November as part of a 90-day trade truce, as retailers in both continents gear up for the busy holiday season. Tariffs can be expected to resume after this period and potentially increase even further.
So how do these tariffs affect the UK? As previously stated, Trump has a deep affection for the UK through his ancestral links, as well as having several businesses set up in the country, such as Turnberry golf course just outside Aberdeen. For these reasons, the UK has been dealt a favourable hand compared to China and the EU. The UK has received a 10% tariff on the majority of its goods; however, British steel, aluminium, and passenger car parts have been given a steeper tariff. The effect this has had on British business is that it has made it more competitive when trading with American businesses, due to other regions having to pay higher tariffs, such as the EU, which must pay a base 15% tariff on goods. Evidence of this can be seen with Scottish salmon, where some of the biggest trading partners for salmon come from Norway, which, like the EU, has a 15% tariff rate compared to the 10% applied to Scottish salmon.
Although tariffs are allowing British business to trade more competitively with America, some businesses are still feeling the pressure. A report from the BBC states that Scottish businesses will suffer from the tariffs, an example being Scottish shortbread. Higher prices brought on by tariffs mean that Scottish goods will not be able to sell at a premium price when American-made shortbread sells for much cheaper. This will have a knock-on effect on jobs in Scotland, as lower demand for the biscuits may reduce the need for workers. The whisky industry will also feel the effects of the tariffs, as Diageo expects the tariffs will cost them up to £150 million. As well as specific industries feeling the effects, British industry as a whole will feel the toll of the tariffs, with some businesses halting hiring, freezing wage increases, and putting expansion plans on hold.
In conclusion, although Trump is fond of the United Kingdom, his love for the US and his ‘America First’ mantra comes first. Even though his tariffs have some benefits for British business in allowing them to compete against businesses from other countries in American markets, they also have several drawbacks. These include the possibility of pushing customers away due to higher prices that can be undercut by American businesses. The tariffs also pose a threat to the job market in the UK, as lower demand for goods in the US means fewer workers will be required to fulfil orders compared to previous levels.
Written by - Paul Anderson
Position - President
Date - 01/10/25
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