UK firms growing in the US as presidential election looms large

Business activity between the UK and the US has ramped up this year, new data showed, as firms shrug off uncertainty ahead of the American presidential election.

Data from banking giant HSBC UK showed that UK firms buying US businesses, or creating new subsidiaries, shot up by 45% over the first half of 2024, compared with the same period last year.

Subsidiaries refer to spin-off companies formed by a parent firm.

US firms acquiring those in the UK or creating subsidiaries soared by 71% year on year.

The data points to a growing cohort of businesses spotting opportunities to grow and trade across the pond, amid an ongoing recovery from the Covid pandemic and the energy crisis.

Stuart Tait, the head of commercial banking at HSBC, said that business partnerships between the UK and the US “remain strong”.

“UK businesses view the US as an attractive growth market because of its stable economy, transparent regulatory environment and cultural similarities,” he said.

“In the first half of this year, HSBC UK received more new client referrals from HSBC US than any other HSBC market globally.”

Furthermore, the bank said that the value of payments made by its business customers in the UK, to those in the US, rose by 15% in the year to June compared with the same period a year ago.

Payments made to the UK from the US also rose by 5% year on year.

The data comes weeks before American voters head to the polls to choose their next president, with economic policies among those in focus for international businesses.

Republican candidate Donald Trump has pledged to impose tariffs of up to 20% on everything the US imports.

A recent survey from banking group UBS found that wealthy investors in the US are more or less divided over which candidate they think will handle the economy better.

Some 57% of investors surveyed said they would be voting for Democratic candidate Kamala Harris, versus 43% who said they would vote for Mr Trump.

Most investors also reported feeling more optimistic about both the US and the global economy this year than they did in 2020, according to the survey.