The Implications of the 2024 US Presidential Election for UK Startups

Investment Climate: The US is a major source of venture capital and private equity. If the election results in policies that favour entrepreneurship and innovation, such as tax incentives for startups or increased funding for research and development, UK startups may find it easier to attract US investors. However, political uncertainty or changes in tax policy could lead to a more cautious investment environment.

Trade Policies and Tariffs: A change in administration may result in a shift in trade policies with renegotiation of trade deals or implementing new tariffs. UK startups, especially those exporting goods or services to the US, should stay informed and be prepared to adjust pricing, supply chains and business strategies in response to any new trade barriers or opportunities. Where the Biden administration has opposed across-the-board tariffs, Trump proposes to impose tariffs on imported goods.

Regulatory Changes and Compliance: Changes to the regulatory landscape in the US could affect sectors like technology, healthcare and finance. For example, a more conservative administration might prioritise deregulation, which may benefit startups by reducing compliance costs. On the other hand, a more progressive administration might introduce stricter regulations, particularly in areas such as data privacy, environmental protection and labour rights. Changes to immigration rules with stricter border controls may affect UK companies’ ability to recruit and second their staff to the US.

UK Economic Growth and Market Stability: If the election leads to policies that boost economic growth, such as increased government spending or tax cuts, it could create a favourable environment for UK startups looking to expand in the US. Conversely, if the election results in economic uncertainty or volatility, it could lead to a more cautious approach by investors and consumers, potentially slowing down market growth.