Trump 2.0 and what it means for the UK recruitment market

5 minutes read time

As Donald Trump prepares for his second term in office, the stakes are high for UK businesses and investors.
We take a look at how the ever-evolving U.S - UK relationship could shape opportunities, challenges and strategies for UK recruitment, within the property sector. 
full width image

In the UK, the property sector is bracing for a mix of opportunities and challenges as it navigates the potential impacts of a second Trump administration. 

Trade tariffs

One of the most immediate effects is on trade. Trump's protectionist stance and suggestions of tariffs on Chinese (and potentially other third country) exports into the US could disrupt a broad range of global supply chains, on which many UK businesses are reliant for the supply of components and construction capacity. 

Despite the aggresive talk of imposing tariffs of 60% on Chinese-made imports, it's likely that this will drop to 10% but could hit as early as 1 February. This could lead to increased costs and delays, potentially hindering the growth and competitiveness of UK companies and perhaps leading to a slow-down in short term recruitment. 

Tax and deregulation

Trump's new administration is generally expected to continue its focus on deregulation and tax cuts, which could create a more favourable business environment for many property companies trading within the US market. Reduced regulations and lower taxes might encourage investment and innovation within the sector, providing a boost to startups and established companies back across the pond. 

Crypto

With the launch just earlier this week of $Trump and $Melania, coupled with the rise in meme coins, Trump is likely to take a strategic approach to Bitcoin stockpiling and doubtless will be appointing financial regulators that take a more positive stance towards digital assets. These crypto ripples should be seen across the water, in the form of a demand for data centres and the rapid repurposing of existing warehousing.

Climate

Trump's scepticism of climate change and support for the fossil fuel industry, characterised by his withdrawal of the US from the Paris Climate Agreement, is a huge set back, particularly in the midst of an escalating climate crisis that’s upending livelihoods and lives. This is likely to create tension between US and UK climate policies, with Ed Miliband spearheading the UK’s pursuit of renewable energy technology, affecting international cooperation and the development of green technologies. The UK has ambitious plans to boost renewable energy supply and is creating thousands of clean energy jobs. 

What's next..?

Trump is highly unpredictable, so it's impossible to be sure of what lies ahead. While the second Trump administration presents a potentially complex landscape for the UK, it also offers significant opportunities to the property sector. The anticipated deregulation and focus on crypto innovation could provide fertile ground for growth and investment, particularly within data centres, which would hopefully benefit economic growth. However, the sector must remain vigilant and adaptable, particularly in navigating the challenges posed by potential trade disruptions and divergent environmental policies. 

Other insights