Following Donald Trump’s return to the White House in 2025, political experts and media journalists have been debating what his presidency could have in store for not only the US, but the rest of the world – including the UK.
The close allyship of the US and UK has been described as a ‘special relationship’ since Winston Churchill first coined the term in 1944, leading the two countries to share intelligence and research with one another for decades.
With Trump’s widely-reported ‘America First’ approach to foreign policy, questions have been raised over the continuation of this decades-long ‘special relationship’ between the UK and US.
In part, this ‘America First’ agenda would entail a competitive tax regime to help deter companies from outsourcing production overseas and to encourage foreign manufacturers to establish operations in the US.
Investor and strategic advisor, James Disney-May, offers his thoughts for how a Trump presidency could impact UK-US relations.
Disney-May predicts that the president’s ‘America First’ approach could sway the UK-US trade towards American interests. UK investors should therefore ready themselves to create strategies around potential new tariffs and sector-specific trade frictions.
He adds that Trump’s plan to remove or reduce state regulations may help to promote capital growth and tackle the regulatory burden imposed on businesses.
According to Disney-May, smoother regulatory pathways and favourable trade terms could be possible for UK companies that are prepared to set up local operations within the US, thanks to Trump’s preference for foreign businesses with a US presence.
“The UK’s financial services sector, which is vital to its economy, may find short-term opportunities in the US market, however increased volatility poses long-term risks.
“UK financial institutions may need to adjust their strategies to align with the evolving US regulatory landscape, particularly in areas such as cryptocurrency, data privacy, and financial disclosures,” Disney-May said.
Disney-May went on to say that the incoming Trump administration could also lead to significant changes for UK and US tech company relations following Trump’s focus on tech independence and data regulation.
While it’s possible that these initiatives will lead to stricter rules on cross-border tech operations, it also presents new opportunities for specialist UK tech firms to work with the US on emerging technology initiatives, including AI and cybersecurity, said Disney-May.
He added that for UK investors who specialise in US investment, Trump’s presidency poses both risks and opportunities.
When it comes to tax cuts, Donald Trump has made a promise to cut corporation tax from 21% to 15% for companies that manufacture their products in the US. Disney-May predicts that these tax cuts combined with the move towards deregulation could strengthen the US dollar.
In turn, this would increase the price of American assets for UK investors and put British companies that rely on US imports under greater strain.
“Those with dollar-heavy portfolios may need to hedge against currency fluctuations, re-evaluating acquisition costs and profitability.
“For UK businesses willing to decouple from China, Trump’s policies may bring preferential trade arrangements with the US, solidifying the “special relationship” as global geopolitics evolve” said Disney-May.