Donald Trump could be about to do UK economy and Keir Starmer huge favour

When reflecting on the US election, it is difficult to ignore the role that fiscal policy played in the outcome (leaving aside the results, of course). donald trumpis vehemently anti-tax This stance was no secret, but it leaves us wondering: what could this mean for the future of US relations on the global stage?

Interestingly, the president-elect took aim at double taxation of Americans abroad during his campaign, and he’s not wrong.

Expats are entangled in a terribly complex tax system that keeps them subject to US taxes even when they live and work abroad. While it’s not even a double tax, the endless bureaucracy and back-breaking paperwork is quite repellent.

With around five million Americans already working abroad, the immediate impact may not be as dramatic. However, an Arton Capital survey found that 53% of American millionaires were more likely to consider leaving the United States after the election, regardless of the outcome. Such a policy would almost certainly spur an American exodus, although its magnitude remains to be seen.

As leaders sit on the edge of their seats, bracing for the impact of Trump’s tariffs, they may find compensation, however slight, in the form of American expatriates joining their economies. This seems to be the comfort they weren’t looking for, but might end up getting anyway.

In fact, there are many benefits to be gained from expats. They provide skills, contribute to taxes and fill jobs. Amid skills shortages, they not only diversify the local talent pool but also bring much-needed entrepreneurial skills, new ideas and capital injections, all of which have multiplier effects.

Real estate markets will prosper, construction and property management will experience a revitalization, new technology companies may emerge, and government tax coffers will benefit.

This is already evident in the growing trend of wealth migration, in which more and more people from the United States move to Asia, Europeand the Middle East. It seems that Americans are increasingly pursuing the American dream, but not within the United States.

As a business owner in the real estate and restaurant industry, this is music to my ears. This type of migration generates greater investment, job creation and a regeneration of local economies, helping to reverse the recent decline, particularly for independent restaurants, with six closures planned each week in 2024.

The London property sector could also contribute by potentially offsetting the market decline caused by the departure of non-doms. As expatriates and wealth migration begin to reshape these markets, we will see the industry and others like it adapt to the influx of people driven by changing global policies.

However, the main impact of easing this tax burden for American expatriates will be an expansion of the country’s soft power. In a world where China’s influence is increasing and the power of the Western Hemisphere is slowly declining, this fiscal policy could serve as a silver lining for US soft power.

Expatriates play a crucial role in promoting the culture of their home countries through people-to-people diplomacy, helping to spread their values ​​and ideals across borders. The trust built through these relationships becomes fundamental to strengthening diplomatic relations, which in turn can facilitate trade deals, improve foreign policy cooperation and, hopefully for the UK, lead to softer tariffs.

In fact, all the anxious Democrats planning to flee the United States could benefit from this tax policy. Some of you have already set your sights on Scotland as the perfect getaway; however, I have heard that Trump International Scotland is particularly lovely this time next year.

Golf and expats aside, it’s no secret that many are eagerly awaiting the results of donald trumpFiscal policies. Despite the concerns surrounding these initiatives, it will be intriguing to see how American soft power policy plays out on the global stage.

Trump will undoubtedly try to take advantage of every opportunity to restore the United States’ position as the superpower that its rivals once came nowhere close to challenging.

How the UK responds to these measures will be crucial in shaping its economic future. These policies could intensify debate over whether the UK aligns more closely with the divergent economic approaches of the EU or the US.

It seems reasonable to expect that Trump’s tax cuts could attract new capital to the UK and not only influence broader economic policies, but also provide a boost to key sectors such as the London property market. This new capital can help clarify the way forward for the UK and, with it, Sir Keir Starmeralthough much will depend on what relationship this Labor government decides to prioritize.

Bill Sedat Frater is an entrepreneur and owns several businesses in London.