Last Updated on: 16th May 2025, 05:19 pm
A leading expert on UK and US business relations has delivered his analysis of President Trump’s first 100 days.
Reflecting on the opening months of Trump’s second term, business expert James Disney-May noted that policy decisions are already influencing the business dynamics underpinning Britain’s special relationship with America.
James said: “Donald Trump’s return to the White House has brought renewed focus to economic nationalism, energy independence, and regulatory reform. Within the first three months, the U.S. administration has introduced a 10% universal import tariff, announced the reduction of over 250,000 federal jobs, and declared a national energy emergency – moves that have injected both momentum and volatility into global markets.
“These measures reflect a bold and fast-paced approach to governance, aimed at reshaping U.S. economic posture. However, the speed of execution has raised questions around long-term strategic planning and coordination with allies.
“The implications for the United Kingdom are already emerging. As the U.S. pivots toward a more self-reliant stance, there’s fresh uncertainty for British trade ambitions, transatlantic investment flows, and shared defence commitments. It’s a moment that calls for pragmatism, adaptability, and clear diplomatic engagement.”
Here, James brings together five headline policies from the Trump administration and examines their ripple effects, particularly on the United Kingdom.
1. Tariff Policy and Economic Volatility
“President Trump’s expanded tariff regime – including import duties as high as 145% on certain Chinese goods has been positioned as a strategy to re-shore manufacturing and protect American industry. It may appeal to domestic producers, however, early economic data points to mixed outcomes: U.S. GDP contracted by an estimated 0.3% in the first quarter and global markets have responded with caution.
“For UK firms integrated into U.S. supply chains, the knock-on effects are becoming apparent. Companies such as Jaguar, Land Rover and Rolls-Royce, which rely on transatlantic logistics and component flows, are reporting increased costs and greater operational complexity. The challenge goes beyond pricing – it’s a broader shift in the structure of international trade.
“The UK is now at a strategic crossroads: whether to recalibrate for a more transactional U.S. trade posture or to diversify its economic partnerships elsewhere. Either path will demand agility and foresight from both government and industry.”
2. Government Efficiency or Institutional Shock?
“The launch of the Department of Government Efficiency, led by Elon Musk, has triggered a sweeping overhaul of the federal bureaucracy. With a reported $160 billion in public spending reductions and thousands of roles eliminated, the initiative is being presented as a bold effort to streamline operations and reallocate resources more effectively.
“Supporters argue it reflects a business-like approach to governance, focused on trimming excess and improving productivity. But while the headline figures are striking, the broader impact on institutional capability remains to be seen.
“There’s a cautionary tale here for other governments, including the UK. Reforming public institutions is rarely cost-free. Structural cuts may offer short-term fiscal gains, but if not carefully executed, they risk eroding long-term capacity. Efficiency must be earned, not declared. The danger lies in replicating the optics of reform without securing its substance.”
3. Energy Deregulation and Strategic Risks
“President Trump’s declaration of a national energy emergency has enabled the administration to expedite oil and gas permits by waiving certain environmental reviews. The result has been a sharp 20% drop in oil prices and a significant uptick in U.S. domestic production – moves that have been welcomed by some as a boost to energy independence and cost control.
“However, the policy shift has sparked debate over regulatory oversight and long-term sustainability. While the economic benefits are clear in the short term, the sidelining of environmental protections introduces new strategic risks – particularly for allies with more climate-focused policy frameworks.
“For the UK, the challenge lies in navigating a more commercially driven U.S. energy agenda without undermining its own environmental targets. As global energy dynamics become more fragmented, Britain may find itself needing to work harder to maintain credibility on climate diplomacy and ensure its values are reflected in future trade arrangements.”
4. Tax Reform and Worker Spending Power
“The Trump administration has proposed exempting federal income taxes on tips, overtime, and Social Security payments – an initiative aimed at increasing worker take-home pay and boosting consumer spending. Though still in the proposal stage, it reflects a broader effort to stimulate the economy through labour-driven fiscal incentives.
“The political appeal of larger pay cheques is clear, especially in sectors like hospitality and retail. Yet the structural impact will hinge on the policy’s implementation – how it’s funded, and whether the additional income circulates through the economy or is saved.
“In the UK, the idea has sparked renewed discussion around labour taxation, particularly in lower-paid, high-turnover sectors such as care and hospitality. While there’s interest in adopting similar incentives, experts caution against simple replication.
“Context matters. The U.S. is leaning heavily on consumption to fuel growth. The UK, with its different tax structure and social safety net, would need to evaluate such policies carefully to avoid unintended fiscal or social consequences.”
5. Housing Supply and Public Land Debate
“President Trump’s proposal to open federal land for residential development is being positioned as a bold response to America’s housing shortage. The goal is to rapidly boost supply, reduce cost pressures, and drive construction-led economic growth.
“The move signals a willingness to rethink federal land use policy, but turning available land into actual homes is rarely straightforward. The real challenge isn’t just land – it’s infrastructure, zoning, and delivery at the local level.
“Britain faces similar hurdles. Despite years of policy focus on unlocking public land, progress has often been slow and fragmented. The UK experience underscores a key lesson for U.S. policymakers: headline-grabbing initiatives must be matched by long-term planning and local coordination, or they risk becoming symbolic rather than systemic solutions.”
