THE global tariff policies of Donald Trump will impact Wales proportionately more than in England while it could create investment opportunities, believes First Minister Eluned Morgan.
Last month Mr Trump’s administration introduced a 10% tariff on all steel and aluminium imports and 25% on the automotive sector.
A 10% tariff on all 海角视频 goods, as well as a range of tariffs on nations globally and the EU at 20%, were paused for 90 days. Whether any trade deal can be struck between the 海角视频 and USA is yet to be seen.
The US has though imposed eye-watering tariffs on China, which has reciprocated, leading to concerns that Chinese goods could flood 海角视频 and European markets.
For all Welsh goods exported, on value America accounts for 15.2%. Addressing the CBI Wales annual lunch event in Cardiff, Ms Morgan said unlike in England, goods make up well over half of the total value of all Welsh exports.
She said: “There are particular challenges for some businesses in Wales at the moment with the US policies on tariffs.
“The impact of Wales is proportionately much greater than in England because in England they have a much more service-based economy. In Wales around 67% our exports are goods while in England it is 32%. That is a massive difference so the impact on Wales and Welsh businesses would be far greater.
“So, there are headwinds we are trying to deal with and all of this creates turmoil.”
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Last week the First Minister attended the WindEurope 2025 conference in Copenhagen where she held talks with some of Europe’s biggest renewable companies and investors.
She said: “Talking to some of those wind developers they are pouring out of America because of the ‘drill baby drill” approach.They are looking for a new home, (to invest) so there are opportunities and I am always trying to be positive and where the opportunities are amongst this chaos?”
In December her government will host an international investment summit at the International Convention Centre Wales (ICC Wales) and adjoining Celtic Manor Resort in Newport.
It will focus on sectors where Wales currently has significant strengths, including compound semiconductors and renewables. She said that efforts in trying to increase direct foreign investment into Wales shouldn’t be seen as being at the expense of indigenous firms, pointing to the fact that inward investors generate significant opportunities for home-based firms through supply chains.
Ms Morgan said:“I want to put a huge flag up and say Wales is open for business and there is no better way of doing that than hosting an international investment summit.
"There are 180,000 people in Wales that are employed by foreign companies in Wales which is quite a substantial number. We are working in a very competitive global environment and we need to make sure that we put our best foot forward and demonstrate what we can do uniquely and where we have additional power to bring people to our country. That may be about resources, skill sets and particularly sectors where we have excellence like compound semiconductors.
“It is time to get inward investment (more of) and obviously if we land those investments there will be massive opportunities for Welsh-based companies as things will fall out of that.
"At the renewables conference in Denmark I talked to people who have a genuine interest investing in Wales, but the interest for us is not just about a big massive turbine turning in the Celtic Sea, but where is ‘our piece of pie here’?
"So, what do you need us to do as government to make sure we can surround that investment and our hope is that will be greater opportunities for businesses in Wales.”
She identified planning and productivity and two key areas that need improving in Wales.
The First Minister said:“Planning is a big issue and the first thing we did (on being appointed First Minister last September),was to pour money into it in order to speed things up. We know that any day a business is waiting for a decision is money and time wasted.”
On improving productivity levels, which is not a unique Welsh issue but a 海角视频-wide one, she added: “As a Labour politician you would expect me to make sure that the voice of the worker is absolutely essential.”
Addressing a business audience she added: “You understand how important it is to get people in workplaces that are happy, trained up and have that sense of security, as we know that is going to improve productivity because of having a happier workforce.
“I think there is a strong case to be made for supporting the new employment rights (海角视频 Government legislation) so what we get is actually better productivity, and God don’t we have a problem with productivity in this country.
"Some of that is about the need for improved management for example and needing to make sure that people are accountable in our workforce.
"And I think there is a role for government in helping to upskill people. I think upskilling constantly in this day and age is imperative. If you look at AI the world is about to change and we have to make sure that we are part of that change and that we embrace it in a way that works for businesses and our communities as well.
“If we can harness that power there are real opportunities, but there are obviously things that we have to be cautious about as well.”
Director of CBI Wales, Russell Greenslade, said: “Our annual lunch celebrated the businesses, innovators, and leaders shaping our future, alongside a thought-provoking discussion on how we can build on this momentum to deliver sustainable economic growth. Welsh businesses are leading the way. From pioneering technologies to attracting investment and driving innovation, Wales is demonstrating what a modern, agile economy can achieve.”