Stormy times ahead for investors with UK now seen as an oasis of political stability: RUTH SUNDERLAND
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Could the tempestuous weather that ushered in the New Year be a bad omen for 2025? Let’s hope not. But I’m not alone in looking ahead to the next twelve months with a high degree of trepidation. The post-war world order in the West looks increasingly unstable with free trade and centrist politics under threat from a surge in populism.
The biggest event we already know about is the return of Donald Trump to the White House: he will officially be sworn in for his second term on January 20. To state the obvious, this will have enormous implications for the UK, politically and for the economy.
If Trump goes ahead with his threat to slap tariffs on imports into the US, it would threaten the decades-long trend towards free trade and globalisation. Instability: The post-war world order in the West looks increasingly unstable with free trade and centrist politics under threat from a surge in populism.
Some economists argue the UK will not be in the front line of countries affected, but even so. Our chances of a good trade deal are not helped by fractious relationships between elements of the Labour Government and the incoming Trump administration. This is, predictably, leading to calls to ‘reset’ – to use the Chancellor’s word – our relationship with the EU, a euphemism for trying to undo Brexit.
It is easy to envisage the UK being caught between a Trump White House and trying to placate EU leaders. Who would have confidence in this Government’s ability to walk such a tightrope? Not me. Alongside Trump is Elon Musk, a figure who is as alarming as he is fascinating.
