Business
Why experts think Trump’s win will be blow to UK economy and your wallet
DONALD TRUMP’S return to the US presidency casts an uncertain shadow over the UK, potentially leading to economic shocks that could burden British households with higher costs, lower growth, and less job security. His policy unpredictability and “America First” doctrine spell challenges for UK businesses, while his strong-willed approach to trade and foreign policy could drive a wedge between the two countries.
TRADE TENSIONS COULD COST UK EXPORTERS
Trump’s protectionist stance has reignited concerns about tariffs, which could cut deep into the UK economy. The US is Britain’s largest export market, receiving around 25% of all UK-manufactured exports. Proposed tariffs of up to 10% on imports to the US would affect major British exporters such as Rolls Royce and BAE Systems, impacting an estimated £56 billion in trade. If enacted, such tariffs could push costs higher, threatening thousands of jobs in sectors dependent on American demand.
A STRAINED UK-US RELATIONSHIP
While Prime Minister Keir Starmer and Foreign Secretary David Lammy have made diplomatic overtures to Trump, attending dinners and working closely with Trump’s allies, challenges in the relationship remain evident. Starmer’s reserved style contrasts with Trump’s brash manner, raising questions about how compatible their leadership styles are. This uncertainty, highlighted by one diplomat’s remark that Trump “doesn’t give a stuff” about UK relations, suggests a bumpy road ahead.
Diplomats have tirelessly built relationships with Trump’s inner circle, including former Secretary of State Mike Pompeo and Trump’s likely national security adviser, Elbridge Colby. However, Trump’s mercurial nature, marked by unpredictable social media outbursts and contentious negotiations, may test these connections. As Lammy put it, relations with Trump are likely to be “bumpy, noisy, and transactional.”
ECONOMIC FALLOUT AND SLOWER GROWTH
The potential for UK economic slowdown under Trump’s policies is profound. Economists from the National Institute of Economic and Social Research (NIESR) predict UK growth will be halved if Trump enforces his proposed tariffs. Without tariffs, the UK could expect moderate growth of around 1.2% next year; however, this figure could drop as low as 0.4% should the trade restrictions come into force. Coupled with rising inflation, this could lead to diminished purchasing power for households already grappling with a cost-of-living crisis.
CURRENCY VOLATILITY AND JOB THREATS
Trump’s victory has already weakened the pound, with the GBP/USD exchange rate falling sharply as results came in. Investors are wary of increased tariffs and Trump’s isolationist policies, both of which could stoke currency volatility and strain the UK economy. A weakened pound also drives up the cost of imports, which affects consumers directly through higher prices for everyday goods.
The potential loss of thousands of jobs in sectors heavily reliant on US trade adds to the bleak outlook. Automotive manufacturing, for instance, could be heavily impacted by Trump’s threat of a 100% tariff on imported cars. Companies like Jaguar Land Rover, whose Land Rover Defender was one of the UK’s top exports to the US, may face cutbacks if tariffs make exports uncompetitive.
UNCERTAIN INVESTMENT ENVIRONMENT
The UK’s global-facing stock market may also suffer. Companies in the FTSE 100 and FTSE 250, which derive significant profits from international operations, could experience volatility as Trump’s policies introduce uncertainty into transatlantic trade. Such uncertainty could lead investors to shy away from the UK market, diminishing capital inflows and further affecting economic growth.
SHIFTS IN GLOBAL PRIORITIES
Beyond economic pressures, Trump’s foreign policy outlook could exacerbate the UK’s security challenges. Trump’s “America First” rhetoric and emphasis on Asia over Europe may leave European allies, including the UK, less confident about US support for initiatives like defending Ukraine. While the UK has publicly aligned with Trump’s view that Europe should shoulder more of its defense costs, there are fears that a US pivot to Asia could weaken the cohesion of NATO and reduce military backing for Europe.
Lammy has attempted to foster an understanding of Trump’s instincts, acknowledging his focus on American interests and recognition of Asia’s growing influence. However, as the UK looks toward cooperation on issues like Ukraine, this alignment may prove insufficient in securing the support needed to address shared security concerns.
BRITISH FAMILIES TO SHOULDER THE COST
For British families, the impact of a Trump presidency could hit close to home. With increased tariffs potentially driving up inflation by 3-4%, the Bank of England may feel compelled to raise interest rates by as much as 2-3% in response. For households already feeling the pinch from rising prices, this could lead to higher mortgage costs, increased borrowing rates, and a tougher job market, further squeezing living standards.
Though the UK government has prepared for Trump’s return, the effectiveness of these plans remains to be seen. As Britain braces for another unpredictable chapter with Trump at the helm, citizens may face a “bumpy, noisy, and transactional” relationship that could reshape the economy, impacting everything from job security to the prices at the supermarket.
Business
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
Business
52 homes to be built in Roch as scheme gets final sign-off
THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.
Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.
18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.
Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.
An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].
“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.
“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”
Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.
Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.
The Section 106 agreement was recently agreed, with the application now formally approved.
Business
World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners
AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.
Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.
The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.
The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.
SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.
Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.
“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”
Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”
“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.
The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.
-
News2 days ago
Ferry accident causes delay on new Dublin-Fishguard route
-
Top News6 days ago
Pembrokeshire man jailed after repeatedly punching pregnant wife
-
Education3 days ago
Home Education: Delays and missed opportunities risk further tragedy
-
Top News5 days ago
Police investigate dogs seen persistently chasing sheep on Pembrokeshire airfield
-
Top News6 days ago
Milford man dealt ‘persistent’ blows on girlfriend after urinating in flat
-
News6 days ago
Engine room fire caused by loose fuel pipe connection previously flagged
-
Top News6 days ago
Caws Cenarth ‘matriarch’, Thelma Adams, dies aged 86
-
News6 days ago
Children seen kicking and ‘egging’ doors near Pembrokeshire train station in early hours