UK CFOs Shift Investment Focus Away from US Amid Tariff Concerns

The United States is losing its appeal as an investment destination for British businesses, according to a new Deloitte survey. The report, released Monday, reveals that just 2% of CFOs at major UK firms still view the U.S. as attractive for investment—plummeting from 59% in late 2024, before President Donald Trump assumed office.

The steep decline in sentiment mirrors official U.S. data showing a significant drop in foreign direct investment (FDI) in early 2025, coinciding with heightened uncertainty over Trump’s proposed tariff policies. In contrast, British executives now see more promising opportunities closer to home. Deloitte’s survey shows a net balance of +13% favoring the UK as a top investment location, up sharply from -12% earlier this year. The UK now ties with India as the most attractive market in the eyes of British CFOs.

Despite the drop in U.S. favorability, the country remains more appealing than China and the rest of developed Europe, both of which recorded negative sentiment in the survey. Deloitte UK CEO Richard Houston noted that "renewed confidence and rising risk appetite" suggest strong investment potential for the UK economy.

In 2023, Britain ranked as the fourth-largest direct investor in the U.S., holding $636 billion in assets, according to official U.S. data. However, current trends suggest a shifting landscape.

The survey, conducted between June 16 and June 29, included 66 CFOs and executives, including 37 listed firms with a combined market value of £386 billion. While business confidence remains modest, Deloitte’s optimism index edged up to -11% from -14% in April, indicating a slight recovery.

Economic growth concerns persist in the UK, with speculation that Finance Minister Rachel Reeves may raise taxes in the next budget.