The UK tech sector is assessing the fallout of Donald Trump’s return to power.
- Potential trade wars are causing anxiety among British tech firms reliant on US markets.
- Climate tech faces setbacks as Trump’s policies favour fossil fuels over green technology.
- Crypto and blockchain sectors are buoyant, anticipating a boom under Trump’s administration.
- The tech landscape is marked by both apprehension and optimism, creating a complex forecast.
The UK tech industry is grappling with the implications of Donald Trump’s electoral victory, which has led to a mix of concern and optimism. Trump’s presidency promises significant policy shifts, with potential trade wars at the forefront of worries. His self-proclaimed expertise in business could impose rigorous tariffs, affecting UK firms operating in American markets. The proposed tariffs of up to 20% on imports—and as high as 60% on Chinese goods—could increase global trade tensions. Jonathan Reynolds, the UK’s Business and Trade Secretary, has voiced concerns, echoed by industry leaders like Russ Shaw of Global Tech Advocates, who warns of inflation and economic downturns impacting the tech sector.
British tech companies, particularly those with American subsidiaries, find themselves navigating these potential challenges. Milan Patel, CEO of DotDigital, notes that while some firms may circumvent the immediate tariffs by operating through US subsidiaries, others could face hurdles in direct UK-to-US commerce. Trump has hinted at the possibility of new trade agreements with Britain, yet no deals materialised during his initial term, leaving future prospects uncertain.
For climate-focused technology firms, Trump’s reluctance to embrace environmental protections poses a significant threat. His endorsement of fossil fuel industries contradicts the UK’s push for climate tech advancement. Lukky Ahmed of Climate X highlights fears of weakened environmental regulations, urging businesses to bolster their resilience against climate threats. This divergence in approach may strain UK-US environmental collaborations.
Conversely, the crypto and blockchain sectors are optimistic about the future under Trump’s leadership. His outreach to crypto voters and the use of blockchain initiatives in his campaign indicate potential support for the industry. Dom Kwok, co-founder of EasyA, sees this as an opportunity for the US to solidify its role as a leader in Web3 technologies. The crypto market’s positive response, with notable gains in Bitcoin and other digital assets, reflects this enthusiasm.
The UK tech industry stands at a crossroads, navigating the challenges and opportunities posed by Trump’s presidency.
