The warm sunny weather greeting Rachel Reeves in Washington DC this week contrasted with the somewhat chilly headwinds facing the British economy at present.
The International Monetary Fund has downgraded its growth forecasts for this year for the UK from 1.6% to 1.1%, and the Chancellor is right to redouble the Government’s efforts to strike a trade deal with the US in order to avoid the full impact of President Trump’s tariffs.
Since they were announced earlier this month, the President’s tariff plans have sent shockwaves through overseas capitals and stock markets, and fear of retaliation has sparked concern for damaging trade wars that could have significant consequences for all of us.
Time will tell and a patient approach seems prudent. Yet, it is clear that the Trump Administration is seeking to put the interests and jobs of American manufacturing first by reducing US deficits and reordering the global trading system.
This has profound implications internationally and for American consumers too, who now face higher prices and lower growth. Yet, despite the shocks and challenges, the view of our business is that the US economy will continue to be a highly attractive market within which to invest.
We are a family investment business born in the UK, with almost a quarter of our portfolio comprised of American firms spread across the continent – from an automated carwash firm with over 150 outlets to an outfit offering a full range of outpatient healthcare real estate services in 21 states. Through such investments we have developed a series of productive relationships in the US that are benefiting economies on both sides of the Atlantic.
We continue to have confidence that America is a great country in which to pursue profitable business opportunities.
Yes, there may be some difficult times ahead and it is almost impossible not to admire their irrepressible entrepreneurial spirit, the ‘get up and go’ character that you constantly see whenever you spend time in the United States.
I was in DC on a planned business trip earlier this month and -whether it was the taxi driver working two side hustles as a real estate agent and digital marketing expert or the street vendor hawking MAGA hats outside the White House - the willingness to take risks, to fail quickly and to reward success is a deeply-embedded feature of American society that drives wealth-creation.
Such traits certainly also exist in the UK, but it would equally be fair to say that a little more of this innovative, business-friendly attitude would not go amiss as we look to inject new momentum and growth into our own economy.
Without a doubt, government in the UK has an important role in setting the right environment for commerce – and the forthcoming industrial strategy will rightly focus on helping to boost high growth sectors. At the same time, businesses like ours generally seek the freedom to get on and do what we do with minimum interference (in a lawful and ethical manner).
During my Washington visit, I was struck by a prevailing view from fellow businesspeople and policymakers that trade agreements between the UK and the US were not just desirable but also eminently possible in the short-term and could bring huge potential benefits to both countries.
The road to striking such deals may not be easy, and there will need to be political trade-offs that may be controversial.
However, the UK Government, and the Prime Minister in particular, have played their cards well so far with the new President by focusing on substance and avoiding the temptation to get distracted by the high-octane debates that dominate political and economic discourse on both sides of the Atlantic.
There is admiration among many of the people I met with in the US at the way the Prime Minister conducted himself on his trip to the White House in February, not least for the flourish with which he produced the hand-written invitation from the King.
Alongside this, our new man in Washington, Lord Mandelson, brings a wealth of experience on trade negotiations from his work as an EU Trade Commissioner and he has clearly landed soundly amongst the policy community.
We should all wish them and the Chancellor well in their work to strike these agreements. Yet, we should also remember that the bonds between America and the UK through family, culture or business have been tested many times in the past and have continued to flourish.
Like the weather, individuals, governments and even tariffs come and go but the relationship between our two countries will endure.
