*NEW RESEARCH* US tariffs on UK: Tech investment implications

As we reach the end of a roller coaster (think Oblivion at Alton Towers) week of economic and stock market activity, TechMarketView brings some cool, calm, and intelligent analysis on how tariffs might impact the UK tech sector. 

In “US-UK tariff situation: UK tech market implications”, Chief Analyst, Georgina O’Toole analyses the impact on tech investments and specifically the digital investment implications sector by sector.

It's clear the imposition of US tariffs on UK exports – including a 25% tariff on cars and a 10% reciprocal tariff – creates significant challenges for the UK tech market that extend far beyond directly affected sectors. While manufacturing (including automotive) represents just 10% of the UK SITS market, the ripple effects across an economy already weakened by Brexit, COVID-19, and energy crises threaten much broader tech spending patterns.

Trump's 'Liberation Day' approach threatens to fundamentally redraw principles that have governed global trade for decades. His unexpected threat to end pharmaceutical tariff exemptions and the 90-day policy reversal announced just days after implementation further compounds uncertainty.

Our new research examines how this unpredictable landscape is reshaping technology investment across key verticals:

• Manufacturing companies face dual imperatives – simultaneously pursuing efficiency improvements while considering production relocation, as demonstrated by Jaguar Land Rover's pause of US shipments
• Financial services organisations brace for indirect impact amid market volatility 
• SITS suppliers face varied exposure based more on client export profiles than simple sector categorisation
• Tech innovation funding faces significant pressure as market turbulence affects start-up and scale-up capital

The previously anticipated "GenAI Dividend" is now shifting, with organisations anticipated to move increasingly from “spend to save” toward “don't spend” as discretionary budgets go into reverse.

Read our full analysis to discover which tech suppliers are most vulnerable, where investment opportunities remain, and how to position for success in this challenging environment: US-UK tariff situation: UK tech market implications.
 

This research is only available to members of TechMarketView’s Foundation Service. If you can’t access this research, please contact Belinda Tewson for more information.

Posted by HotViews Editor at '09:42' - Tagged: growth   economy   tariffs