The incoming US president has vowed sweeping tariffs on imported goods as part of his promise to prioritise American manufacturing.

Unlike his first term this time Trump is promising 10% tariffs on all imports, 25% on Canadian and Mexican goods and 60% on items coming from .

Mr Trump said he would be signing executive orders to impose them on day one.

One UK-based venture capital firm believes that because of the fear of tariffs, $33billion (£27bn) will be 'up for grabs' with British start-ups expected to benefit from investment cash that would otherwise have been ploughed into US companies.

Fuel Ventures, a leading UK-based venture capital firm, believes this huge sum could be diverted to the UK in the first two years of Mr Trump's presidency.

Looking at previous Chinese investment in the US, according to Statistica, when Mr Trump first took office, Chinese investment dropped by around 36%. Subsequently, the following year's investment decreased by around 83%.

Fuel Ventures has projected that if investment trends follow a similar pattern to Trump's first presidency, Chinese investment in the US could drop sharply from the $28bn (£22.77bn) in 2023 to $10bn (8.1bn) in the first year of his presidency in 2025, with a further decline to $3bn (£2.44bn) thereafter.

Mark Pearson, founder of Fuel Ventures, said: "Trump's re-election means Chinese investors are looking elsewhere for investment outside of the US market. We predict around $33 billion is up for grabs from Chinese companies in the coming years, and the UK only stands to benefit from this, as a hotbed for tech talent and innovation. Although Fuel Ventures and Fuel Ventures Asia already have a large pool of Chinese investors, since Trump's re-election we've seen growing interest as major investors look to redirect their money this side of the pond."

Jing Jing Xu, managing director at Fuel Ventures Asia, confirmed this.

He said: "The UK is becoming an increasingly attractive destination for Chinese investors. The quality of UK technology and innovation stands out globally, offering more consistent growth opportunities compared to other markets.

"Education has always been a priority for Chinese investors, and the UK boasts some of the world's leading universities and secondary schools. This is evident in the 80% rise in Chinese students studying in the UK over the past decade.

"Beyond education, the UK lifestyle and cultural ties to Europe further enhance its appeal. For Chinese investors, the UK represents a bridge to Western markets that offers reliability, sophistication, and long-term potential.

"Following our recent meeting with the Deputy Mayor of Beijing, who expressed a strong desire to bring more advanced technology into China, we are pleased to have successfully forged a relationship with both the Mayor and the Chinese government, further solidifying collaboration opportunities through our latest round of investments."