President Trump: the business reaction

Donald Trump confounded the pollsters today to achieve what is being described as the second tsunami of the year in world politics, following the Brexit vote.

But what does it mean to the business community? Will Mr Trump’s nationalist views mean a tightening of the borders, or will Shropshire companies which trade with the USA continue to benefit from a ‘special relationship’?

On social media, the majority of Shropshire business people were expressing a mixture of either astonishment, exasperation, and disappointment.

And nationally, more than four out of every ten (41%) small independent retail and hospitality businesses across the UK say that they expect the result of the US presidential election to have a negative impact on their business over the long-term. Less than one in five (18%) of the organisations surveyed said they thought it would be positive for their business. 

These were among the key findings of a snapshot poll of such businesses, each with a revenue of under £500,000, conducted by technology company, Epos Now the morning after the election.

The survey highlighted some regret that Hillary Clinton had not prevailed in the vote, with 38% of the sample saying it would have been better for their business had the result gone the other way, as compared to just 14% who said it would have been worse. These small businesses were also concerned about the wider picture, with more than one in five (21%) saying it would be likely to have a ‘very negative impact’ on the UK’s trading relationship with the US.

Shropshire Chamber of Commerce chief executive Richard Sheehan described the result as 'interesting' but suggested that it may actually lead to better trading relationships between UK and US companies. He said he certainly wasn't expecting the door to be suddenly slammed shut on transatlantic trade.

Salop Design and Engineering Director, Christopher Greenough said: “It is a momentous decision that the American public has taken. He would not have been my vote, but neither was Brexit. Trump needs to formulate a plan before he actually moves into the White House, I’m sure that he will have a lot of policy writers behind him.

“I think he will be looking for our special relationship to continue and now we are not in Europe, that actually puts us in a better place. I think regardless of who was elected, the UK would have been at the front of the queue on any trade deals.”

A Shropshire accountant who splits his time between the UK and the USA says the election of Donald Trump could be a refreshing change.

Rob Whittall (pictured) runs Dyke Yaxley Chartered Accountants’ office in Cleveland, Ohio, and also works from the company’s Telford and Shrewsbury offices in the UK. He is the managing partner of the USA operation and has worked on both sides of the Atlantic for over 20 years.

"Now that Donald Trump has been elected and is in place as President Elect, I believe he will take a far more moderate approach as he indicated with his acceptance speech, and he'll have a strong team behind him.

"I'm not concerned about Mr Trump as President because having someone in that position who has come from the world of business and not from a political background potentially could be great news for business.

"He understands what businesses need to run successfully and his policies could make real sense for business people.

“Over the 20 years I have been working in both the UK and the USA, potentially his election could be a really positive move for firms operating in the States.

"Running the country like a business rather than taking a political approach could be very good news indeed."

Rob’s work in the UK and the USA involves tax planning/structuring for UK and US businesses and high net-worth individuals.

He specialises in in-bound and outbound international tax issues for UK and US closely-held businesses and individuals focusing on tax planning, foreign tax credit utilisation, transfer pricing issues, withholding tax issues, income tax treaties, and foreign-earned income exclusions.

“Far from being the catastrophe that many people seem to believe it is, Donald Trump’s election could be an opportunity for businesses in America and in the UK, and I’m looking forward to finding out more about his plans for the future.”

Wrekin MP Mark Pritchard told the Shropshire Star: "Whilst I vehemently disagree with many of his views, I hope these same views will be moderated by good advisers around him. This is a time to pray for America and the world."

North Shropshire MP Owen Paterson also told the paper: "It was good to see a decisive result. The Republicans won the House of Representatives and the Senate and they got the popular vote.

"I will now wait and see who Donald Trump appoints to his team. There are close links between the USA and the UK and I look forward to continuing that special relationship. I aim to travel to the USA at the start of 2017."

Trump winning the US presidency is a bigger deal than Brexit and businesses should expect enormous volatility, but also important financial opportunities, according to the boss of one of the world’s largest independent financial advisory organizations.

Nigel Green, founder and CEO of deVere, said: “Buckle up for a bumpy ride in the global markets.  Whether President Trump will, in fact, do what he has said he will do throughout his campaign, or whether it was just soaring rhetoric to whip up his support base, for now, Trump winning is sending shockwaves across the world.  As such, enormous volatility can be expected in the markets.

“The Brexit result was a real shock and created instability in the UK.  But this is a far bigger deal as this creates instability on a much wider, international scale.

“The markets’ main concerns include Trump’s protectionist policies, focusing on potential trade wars with China – America’s largest trading partner – and with Mexico, it’s third largest. 

“In addition, with Trump having said certain countries are ‘cheating’ due to their undervalued currencies, currency tensions should also be expected.”   

He continues: “Whilst some people are put-off investing because of volatility, many of the most successful investors welcome it.  This is because major buying opportunities are always found where there are fluctuations.

“Fluctuations can cause panic-selling and mis-pricing. High quality equities can then, for example, become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all, in turn, means greater potential returns.

“A professional fund manager will help investors take advantage of the opportunities that volatility brings and mitigate potential risks as and when they are presented.

“Anyone serious about enhancing their finances should be using this somewhat unexpected turn of events to create, maximise and protect their wealth.”

Mr Green concludes: “As ever, the best way to benefit from the inevitable key opportunities and sidesteps risks is through real diversification – this includes across asset classes, sectors and geographical regions.”

UKIP’s Shropshire-based MEP Jill Seymour added: “I'm excited and delighted to hear Donald Trump speaking for the people, and not the political elite.

“He will shake up politics and will work for safety and unity - and it was clear from his victory speech this morning that his words have already softened, with less rhetoric.

“I hope he helps everyone, whatever religion or background, to feel part of a united America. I believe he will also offer more opportunities for Britain.”