What Theresa May Stepping Down Means For The US
Theresa May, the prime minister of the UK, has chosen to step down.
After conceding defeat on Brexit, she is officially stepping down on June 7, nearly five months earlier than what would the scheduled for her departure. She feels that a new leader is needed to resolve the Brexit process in the UK.
Trump has already gone on record for saying that he feels bad for her. However, what does it really mean for the United States with Theresa May stepping down?
How Brexit Negotiations are Going
Much of her time as Prime Minister was spent trying to deal with the exit of Britain from the European Union.
This has been going on for years, and it’s caused a huge split with those in Great Britain as some believe it is important to stay as part of the EU while others feel it’s imperative to leave.
Many want Brexit to go through if nothing more than to focus on immigration.
The people movement has caused a significant issue, with a number of people migrating from other parts of Europe, like Romania, into Britain.
It’s led to a significant amount of economic pressure, housing concerns, and unemployment.
May tried desperately to create a clean Brexit deal that would pass, but it was not something that she was able to do.
This means that whoever steps up to take her place will be faced with the same problems.
Parliament is opposed to no-deal. Further, leaders in Europe have stated that negotiation is off the table for the terms that May agreed upon in November with Brussels.
Compromise, according to May, is the only way that Brexit will move forward.
She said that it’s not a “dirty word” and that it has to be something that the new leader will have to become familiar with.
Why It’s Such a Problem
The UK, as a whole, is split as to whether they want to exit the UK or not.
The largest vote is to remain in the European Union. Many are all about negotiating, even though EU leaders aren’t willing to negotiate too much, marketing with remaining in a single market and having a customs union.
There are also a number of people in the UK who are completely okay with leaving the EU without any kind of deal, which would lower the standard of living across the UK with higher inflation thanks to tariffs being reimposed.
Food shortages could also be experienced because of having to depend on companies in the EU.
How Brexit Affects the US
Whether Britain leaves the European Union or not is of great consequence to the United States.
Although it isn’t taking place on US soil, it is a major global event, which can upset stocks considerably.
Many US businesses with offices in the UK are considering leaving if there’s a Brexit deal, too. This can make it harder for US businesses to maintain international stability.
When the Brexit vote took place, the Dow fell over 610 points. Currency markets were in turmoil for a while, too.
The global economics wreaked havoc all over the world because of the uncertainty of what was to come.
With a weaker British pound, it also causes US exports to be more expensive in the UK.
Brexit essentially prevents globalization, which can weaken international clients and markets. However, the instability in London could greatly benefit New York, making it a stronger global capital.
For the most part, everyone’s in favor of a soft Brexit…or no Brexit at all.
If there’s a no-deal Brexit, it can lead to a hard exit as of October 31, eliminating any kind of trade deals.
If there are no agreements as to how the EU and Great Britain will maintain a relationship in the future, it will result in all sorts of volatility – for all of Europe, Britain, and the United States.
Trump and the rest of DC will be watching closely to see who gets into the position of Prime Minister over the next few months as it will have a considerable impact.
If Brexit were to go through, it could also affect trade deals. Tariffs could go up and there could be considerable custom delays, with both imports and exports.
If the next Prime Minister doesn’t focus all of their energy immediately on Brexit, it can result in a number of problems for the world as a whole, not to mention anyone who is currently doing business in the UK.
While there are plenty of Britainers worried about Brexit, everyone in the United States should be focused on what’s happening, if for no other reason than to protect their stocks.