Business News Round Up (29/05/2025)
US court blocks Trump’s international tariffs
Business sentiment was given a significant boost after a US federal court blocked President Donald Trump’s tariffs. A panel of three judges at the Court of International Trade ruled that an emergency law invoked by the White House does not give the president unilateral authority to impose tariffs on nearly every country. The court has given the White House 10 days to complete the bureaucratic process of halting the tariffs, although most are currently suspended anyway. The court’s ruling needs to go through an appeals process which could go all the way to the Supreme Court. If the ruling is upheld, businesses which have paid tariffs could receive refunds, including so-called reciprocal tariffs. The White House has said it will appeal, saying: “It is not for unelected judges to decide how to properly address a national emergency.”
More than 47,000 jobs supported by Scotland’s renewable energy industry
Scotland’s renewable energy industry and its supply chain supported more than 47,000 jobs and supported £15.5 billion of output in 2022, new figures released today show. Using the latest data available, Strathclyde University’s Fraser of Allander Institute reports that offshore wind continues to be the renewable energy technology supporting the most employment across the Scottish economy with 19,580 full-time equivalent (FTE) roles while onshore wind supports 16,865 roles and renewable heat supports 4,095 roles. Offshore wind also powered the most activity across the Scottish economy, generating more than £6.8 billion of output, followed by onshore wind with £6.4 billion and hydropower with £1.4 billion. The Fraser of Allander Institute’s report assessed the economic impact of the renewable energy industry and its wider benefits in terms of supply chain activity and spending within the Scottish economy.
UK mid-market shaken by not deterred by tariffs dramas and economic head winds
New research from leading business and financial advisory firm Grant Thornton UK has revealed the UK’s mid-market remains broadly optimistic in the face of uncertainty driven by tariffs. Grant Thornton UK’s latest Business Outlook Tracker*, a rolling survey of over 600 UK mid-market decision makers found that whilst businesses are reviewing their strategies around US and international investment, they expect their decisions to be made quickly and feel they have a clear view of the options available. Undertaken before the announcement of the UK-US trade deal, the Business Outlook Tracker optimism indicators have declined since they reached record highs at the beginning of the year; they remain above average levels seen across the last four years. 80% of businesses were optimistic about the UK’s economic prospects over the next six months (-3pp since February) and 59% expect their organisation’s profits to increase in next six months (-8pp decrease since February).
Just 22% of small Scottish businesses expect to be net zero by 2045
Less than a quarter of small firms in Scotland expect to transition to net zero by 2045 as businesses struggle with the high upfront cost of green investment, according to a new report. The New Growth report, published by the Federation of Small Businesses (FSB) in partnership with Zurich UK, sets out practical steps which can be taken by Scottish and UK governments, as well as local authorities, to support small businesses in the transition to net zero. The Scottish Government has committed to the country reaching net zero emissions by 2045, five years earlier than the UK government. While nearly two-thirds of small firms (64%) think that sustainability should be a high priority for government, less than a quarter (22%) of those in Scotland expect to transition their own business to net zero by 2045.