Trump's Impact on Technological Developments
In the political landscape of 2025, President Trump's administration is making significant strides in shaping the future of technology and trade relations, particularly with the United Kingdom.
Emphasis on AI and Deregulation
The Trump administration has announced an ambitious AI Action Plan, aiming to establish the U.S. as the global leader in AI. The plan, unveiled in July 2025, focuses on accelerating innovation, building AI infrastructure, and leading international AI diplomacy and security efforts. This includes three executive orders targeting ideologically neutral AI models, streamlining infrastructure development, and promoting an all-American AI technology stack.
This deregulatory approach, which removes barriers to innovation and eliminates diversity or equity initiatives within federal AI practices, is reshaping the federal government’s AI policies and practices. The overall emphasis is on ensuring the U.S. maintains a competitive edge in AI and related emerging technologies such as semiconductors and quantum computing.
Deepening UK-US Trade Ties
The UK and U.S. have announced an Economic Prosperity Deal (EPD) aimed at reducing tariffs on key sectors like cars, steel, and aluminum to deepen bilateral trade. A key element of the deal is harmonizing export controls on sensitive and strategic technologies, including semiconductors, AI, quantum computing, and biotechnology. This cooperation is intended to prevent critical U.S. and UK technologies from reaching geopolitical rivals, particularly China.
The trade agreement further solidifies a coordinated stance against Chinese tech companies previously allowed limited access in the UK market, such as Huawei, by formalizing stricter export controls and sanctions coordination. The Trump administration has set deadlines and conditions for finalizing these trade negotiations, emphasizing both economic benefit and security implications for transatlantic trade.
Implications for the Technology Sector and UK-US Relations
The Trump administration’s technology policy and trade strategy indicate a blend of economic openness with strong security-driven trade controls, significantly shaping transatlantic technology and trade landscapes. The implementation of Trump's proposed corporate tax rate reduction could disproportionately benefit sectors other than technology, making it difficult for the UK to negotiate a deal with the US.
UK companies may face a tougher trading relationship with the US, potentially leading to the establishment of subsidiaries in the US to avoid new trade barriers. Professor Christian Stadler of Warwick Business School stated that Trump's victory brings a similar uncertainty as Brexit did, as it's unclear which of his campaign promises will translate into policy.
Trump's stance on immigration is a potential issue for technology companies, as he has stated his opposition to H1-B visas but supports highly skilled immigration. The observations were sourced from Dan Ridsdale, head of technology at Edison Investment Research.
Trump's victory could have significant implications for US businesses, including tech companies, in their trade relationships with China. There is a potential for major differences between what Trump has said he will do and what he actually does or can do regarding technology policy.
[1] White House, Office of Science and Technology Policy. (2025). AI Action Plan. [online] Available at: https://www.whitehouse.gov/ai/
[2] UK Government. (2025). Economic Prosperity Deal. [online] Available at: https://www.gov.uk/government/publications/economic-prosperity-deal/economic-prosperity-deal-factsheet
[3] Office of Management and Budget. (2025). Executive Order on Maintaining American Leadership in Artificial Intelligence. [online] Available at: https://www.whitehouse.gov/presidential-actions/executive-order-maintaining-american-leadership-artificial-intelligence/
[4] Office of the United States Trade Representative. (2025). U.S.-UK Trade Agreement. [online] Available at: https://ustr.gov/trade-agreements/free-trade-agreements/us-uk-free-trade-agreement
- The Trump administration's AI Action Plan, focused on AI, semiconductors, and quantum computing, aims to establish the U.S. as a global leader in technology, while the Economic Prosperity Deal with the UK serves to deepen bilateral trade and prevent critical technologies from reaching geopolitical rivals, such as China.
- In the business realm, the Trump administration's technology policy and trade strategy indicate a blend of deregulation, economic openness, and strong security-driven trade controls, which could have significant implications for both US and UK technology companies, particularly in their trade relationships with China.
