What boards need to know about the impact of the US election
The consequences of the recent US election will be felt by businesses across the world - but how should boards prepare for a shifting trade and regulatory landscape?
Donald Trump's second term in office promises to up-end the international order of trade and regulation, with wide-reaching consequences for businesses across both sides of the Atlantic. Protectionist “America First” economic policies, including tariffs and renegotiated bilateral trade deals, will have significant impacts on the global economy.
For the UK, The National Institute of Economic and Social Research has suggested that a 20% tariff on all goods entering the US could cause Britain’s economic growth to halve over the next four years. Any UK or EU businesses that rely on exports to the United States will need to prepare for the impact of these measures.
The Trump Administration also intends to pursue a policy of aggressive deregulation, which will complicate the international business landscape at a time when the EU is implementing new legislation in key areas, such as AI. The EU AI Act, which will be fully in force by August 2027, establishes a regulatory framework for AI applications classified by risk level – those considered highest risk are either outright banned or are subject to strict evaluation throughout their life cycle.
If the US were to create a largely deregulated AI industry, it could mean that US businesses that rely on AI have to alter the way their products function in the EU to comply with the AI Act. Likewise, any EU businesses dealing with GDPR compliance will need to navigate any potential changes to US data-sharing agreements, and the likelihood of a more relaxed data protection environment in the US.
At L-EV8, our experience of the business landscape in both Europe and the United States means that we are fully prepared to advise boards and directors on what is to come. Our bespoke training sessions ensure that boards stay informed about the latest regulatory developments and learn how to plan for uncertainty.
Contact us to find out more.