Impact of Donald Trump's UK visit on Profiteers and Detractor Companies within the British Industry
The United Kingdom is strengthening its ties with the United States in the life sciences sector, but the investment landscape for the UK industry is challenging, as evidenced by recent developments.
Last week, US-based Merck announced it would scrap plans for a £1 billion site in Kings Cross, affecting around 125 jobs. This decision comes as US tariffs on UK steel exports, which currently stand at 25%, have been shelved, with the UK pausing its push to bring the levy down to zero.
However, there is a silver lining. The steel industry's disappointment over President Trump's visit has been overshadowed by significant investments. The UK government secured around £150 billion of US investment during the visit, with technology firms announcing £31 billion of investment, including a £22 billion commitment by Microsoft for AI infrastructure and the construction of the UK's largest AI supercomputer.
The UK pharmaceutical industry is also experiencing a surge in investment. UK pharmaceutical giant GSK revealed plans to put nearly £22 billion into US R&D and manufacturing over the next five years. Palantir plans to establish the UK as its European headquarters for defence, creating 350 "high-skilled" new jobs. Nuclear engineering company Amentum confirmed a £150 million investment in the UK and plans to create more than 3,000 new jobs.
Moreover, the focus in the UK pharmaceutical industry is on the next generation of drugs development and pharmacovigilance services. However, overall investment in research and development has recently declined by nearly 100 million GBP in 2023, with concerns about losing investment attractiveness to other countries. Major pharmaceutical companies have paused or cut investments, and government calls have been made to increase spending on medicines to maintain competitiveness.
The UK's life sciences sector is also set to benefit from Prologis' £3.9 billion investment to drive growth in life sciences and advanced manufacturing. Meanwhile, US engineering firm Stax has committed £37 million to expand its operations and pioneer emission-reducing technology used at ports.
In the realm of artificial intelligence, Google has committed £5 billion of investment, focusing on improvements in research and development and AI infrastructure. Nvidia has committed to supporting the development of the UK's AI supercomputer, deploying 120,000 advanced processors across the UK.
The US investment comes amid a key period for global trade, following trade tensions caused by the US president's tariff plans. US software company Palantir has announced plans to invest £1.5 billion in the UK's defence sector, with a focus on artificial intelligence-powered capabilities.
Lastly, X-Energy and Centrica plan to build up to 12 advanced modular reactors, signifying a significant step towards clean energy and sustainable development.
These investments not only strengthen the UK-US relationship but also provide a boost to the UK economy, creating thousands of new jobs and driving growth in various sectors. Despite the challenges, the UK remains an attractive destination for global investment.
