UK Companies Thriving in US Market Ahead of Presidential Election
Business activities between the UK and the US have flourished this year despite uncertainties surrounding the upcoming American presidential election. New data from HSBC UK revealed a significant surge in UK firms acquiring US businesses or establishing new subsidiaries, with a notable 45% increase over the first half of 2024 compared to the same period last year.
The term “subsidiaries” refers to spin-off companies established by a parent corporation. Concurrently, US companies engaging in acquisitions or subsidiary formation in the UK witnessed a remarkable 71% surge year on year. These statistics indicate a growing trend among businesses to seize opportunities for expansion and trade across the Atlantic amidst the gradual recovery from the Covid-19 pandemic and recent energy crisis.
Stuart Tait, the head of commercial banking at HSBC, emphasised the enduring strength of business collaborations between the UK and the US. Tait highlighted the US as an appealing growth market for UK enterprises due to its stable economy, transparent regulatory framework, and shared cultural affinities. He noted, “In the first half of this year, HSBC UK received more new client referrals from HSBC US than any other HSBC market globally.”
Moreover, the bank disclosed that the value of transactions initiated by its business clients in the UK towards counterparts in the US surged by 15% in the year leading up to June, compared to the previous year. Reciprocally, payments from the US to the UK also saw a 5% annual increase.
These revelations surface shortly before American voters cast their ballots to elect the next president, with economic policies emerging as a focal point for international businesses. Republican candidate Donald Trump has proposed imposing tariffs of up to 20% on all US imports. A recent survey by banking group UBS unveiled that affluent investors in the US exhibit a split opinion on which candidate would manage the economy better, with 57% favouring Democratic candidate Kamala Harris and 43% backing Trump.
Investors expressed a heightened sense of optimism regarding both the US and global economies this year relative to 2020, as indicated by the survey findings. The evolving business landscape indicates a vibrant transatlantic relationship, characterised by opportunities for growth and collaboration between UK and US companies.