Trump’s Impact on the Investment Property Industry Around the Globe: What Investors Need to Know
Donald Trump’s second term as US President, which began in 2025, has sent ripples through global markets, significantly affecting the investment property industry. From tariffs to economic policies, his administration’s actions are reshaping how investors approach real estate worldwide. As a leading UK property platform, Movehut.co.uk explores how Trump’s policies are influencing the global investment property landscape and what this means for investors in 2025.
Tariffs and Their Economic Ripple Effects
Trump’s introduction of sweeping tariffs, including a 10% levy on UK goods and up to 60% on Chinese imports, has sparked concerns about global economic stability. These tariffs, aimed at protecting American industries, are driving inflation by increasing the cost of imported goods. In the UK, where over 35% of imports are priced in US dollars, a stronger dollar due to Trump’s policies has led to higher costs, prompting the Bank of England to consider raising interest rates to curb inflation. This, in turn, raises mortgage rates, making borrowing more expensive for property investors. However, some economists predict that the Bank of England may cut rates faster than expected—potentially to 3.75% by the end of 2025—if global trade tensions slow economic growth, which could benefit investors by lowering borrowing costs.
Globally, countries like Mexico and Canada, which rely heavily on US exports (77% and 75%, respectively), may see reduced disposable wealth, dampening demand for overseas property investments in markets like Spain or the US [Web ID: 4]. Conversely, Asian economies with large savings pools might weather the storm better, potentially increasing investment in regions like the UK, where properties listed on platforms like Movehut.co.uk could attract more international buyers.
Currency Fluctuations and Investment Opportunities
The US dollar’s strength, driven by Trump’s protectionist policies and investor confidence in his tax cuts, has weakened currencies like the pound. This makes UK properties more affordable for foreign investors, particularly in high-demand areas like London, where luxury homes are seeing increased interest from wealthy Americans seeking stability amid US political uncertainty [Web ID: 6]. However, volatile exchange rates may deter some investors, as seen with cautious capital movements in markets like India, where the commerce ministry is analysing the impact of tariffs on sectors like electronics and jewellery [Web ID: 20].
For investors using Movehut.co.uk to explore opportunities, this currency imbalance presents a chance to attract international buyers to UK properties, especially in growing regions like Birmingham and Liverpool, which offer better value compared to London.
Inflation and Interest Rate Pressures
Trump’s policies, including tax cuts and increased government spending on defence and infrastructure, are expected to fuel inflation in the US, with effects spilling over globally. Oxford Economics predicts US inflation will rise by 30 basis points from 2026, potentially pushing interest rates to 3.5% by 2028 [Web ID: 2]. As many central banks follow the US Federal Reserve’s lead, this could lead to higher-for-longer interest rates worldwide, increasing borrowing costs for property investors. In Australia, however, experts anticipate that the Reserve Bank of Australia may cut rates by May 2025 if global recessions loom, potentially buoying the property market by making borrowing cheaper
Shifts in Investment Patterns
Trump’s hardline stance on immigration, including deploying troops to the US-Mexico border, may slow labour force growth in industries like construction, raising development costs globally [Web ID: 4] [Web ID: 17]. This could delay projects and increase property prices in markets dependent on migrant labour, such as the US and parts of Europe. However, his policies may also drive investment flows into commercial real estate (CRE). Fiscal stimulus and deregulation are expected to boost corporate profits, potentially increasing demand for office spaces, especially if federal mandates encourage a return to office work.
In the UK, student housing and build-to-rent properties remain resilient investment options, as demand in these sectors is less tied to short-term economic fluctuations. Investors browsing Movehut.co.uk can target these assets for stable income streams amidst market volatility
Opportunities Amid Uncertainty
Despite the challenges, Trump’s policies create opportunities for savvy investors. In the UK, stamp duty holidays introduced to counter economic pressures may spur short-term demand, though they’re unlikely to offset long-term inflationary effects [Web ID: 6]. Globally, markets perceived as stable, like the UK and Japan, may benefit from more favourable trade agreements with the US, facilitating mutual property investment [Web ID: 4]. For example, Japan’s significant investments in the US could lead to reciprocal interest in Japanese real estate, a trend worth watching for diversified portfolios.
Challenges
Despite the challenges, Trump’s policies create opportunities for savvy investors. In the UK, stamp duty holidays introduced to counter economic pressures may spur short-term demand, though they’re unlikely to offset long-term inflationary effects [Web ID: 6]. Globally, markets perceived as stable, like the UK and Japan, may benefit from more favourable trade agreements with the US, facilitating mutual property investment [Web ID: 4]. For example, Japan’s significant investments in the US could lead to reciprocal interest in Japanese real estate, a trend worth watching for diversified portfolios.
Conclusion: Navigating Trump’s Impact with Movehut.co.uk
Trump’s presidency is reshaping the global investment property industry through tariffs, inflation, and shifting investment patterns. While challenges like higher borrowing costs and economic uncertainty loom, opportunities exist in stable markets and resilient sectors like student housing. By leveraging platforms like Movehut.co.uk, investors can stay ahead, finding properties in high-growth areas like the UK that align with global trends. In 2025, understanding Trump’s impact is key to making informed, profitable decisions in the ever-evolving real estate market.
