Business News Round Up (03/04/2025)
President Trump’s tariffs to be ‘devastating’ for UK firms, business groups warn
Business groups have warned that Donald Trump’s tariffs will have a “devastating” impact on UK firms who are already grappling with sluggish growth. Experts also cautioned of more turbulence in the financial markets as investors react to the sweeping measures affecting global trade. Mr Trump confirmed a 10% tariff was being imposed on US imports of UK goods – the same level as the global “baseline” he was setting for countries around the world. Meanwhile, a 25% import tax has been confirmed for steel, aluminium, and cars. The Federation of Small Businesses (FSB) warned the move will deal a “major blow” to small and medium businesses, who are already facing pressure from weak growth at home. Currently, 59% of small UK exporters sell into the US market, the FSB said.
Scottish exporters ‘disappointed’ over Trump tariffs
Scotland’s biggest exporters to the United States have expressed disappointment with Donald Trump’s new 10% tariffs and called for negotiations to continue. The US President unveiled plans at the White House which will see the import tax apply at varying rates for different countries, affecting products like whisky and salmon. One distillery owner told BBC News the announcement was a “big blow” for the industry, which counts the USA as its most important market. Scotland’s Deputy First Minister Kate Forbes said she was “concerned” the new levies would have a “negative impact” on the Scottish economy. Trump claimed the tariffs would encourage Americans to buy more goods made in the USA rather than overseas and dubbed his announcement “liberation day”. America is the largest export market by value for Scotch whisky, with 2024 figures showing the market was worth £971m to the industry.
https://www.bbc.co.uk/news/articles/c17505eq5wpo
British Business Bank invests €20m to Sustainable Innovation Growth Fund
The British Business Bank, the UK’s largest domestic investor in venture and venture growth capital, has announced a €20m to a funding round from EU tech investor Revaia. The fund will invest in high-growth technology scale-ups across Europe and the UK with a focus on sustainable innovation. The firm partners primarily with mission-driven entrepreneurs, helping them scale their companies globally from growth stage to IPO or buyout. The British Business Bank joins a syndicate of global investors and LPs, including Bpifrance, the European Investment Fund (EIF), BNP Paribas Cardif and JP Morgan. The commitment from the British Business Bank has also helped support Revaia’s UK expansion, with the firm establishing a permanent UK presence. Revaia has a dedicated ESG team that supports portfolio companies with their sustainability journey. The Fund has already invested in sectors focusing on resilience such as energy transition, AI for insurance, and cybersecurity.
https://www.digit.fyi/british-business-bank-invests-e20m-to-sustainable-innovation-growth-fund
Fraser of Allander: Uncertain start to 2025 for Scottish economy as employers brace for increased costs
Economic and business conditions in early 2025 showed limited improvement, as firms across Scotland brace for upcoming cost pressures. according to the latest Economic Commentary from the Fraser of Allander Institute, economists have downgraded their growth forecast for 2025 and 2026 to reflect economic conditions in both the UK and the world economy. The Fraser of Allander now expects growth in 2025 to be similar to growth in 2024 at 0.9%, before increasing to 1.1% in 2026. While GDP in Scotland and the UK grew over 2024, and inflation has continued to ease, the outlook among businesses remains pessimistic. Inflation fell unexpectedly fell to 2.8% in February, offering some relief to households and policymakers. However, services inflation remains high at 5%, meaning the Bank of England is likely to remain cautious in cutting interest rates over 2025.