Trump Tariff Impact on US Operations Will be Minimal, UK Tech Startup Oxa Says

UK-based tech company Oxa has said that the impact of Trump tariffs on its US operations will be minimal. According to Tech.eu, The Google-backed tech startup says it’s on the path of scaling Oxa under Trump tariffs.

Oxa designs software for self-driving cars. Founded in 2014, the tech startup focuses on selling its software products in controlled environments like refineries, solar farms, and factories. A Google-backed startup, Oxa raised £250 million and is a unicorn in which the search giant acquired a 3.5% stake in 2023.

Global Impact of Trump Tariffs

The tariffs imposed by the US and the subsequent halting of many of them shocked financial markets globally and affected the wider investor community.

Oxa employs about 400 people. It has 40 people working in the US and has a partnership with an American shuttle company, Beep. The Oxa and Beep partnership allows the UK tech company to power driverless passenger shuttle service in different parts of the US,including Florida.

Oxa’s technology is powered by Google and US AI chip manufacturer Nvidia. According to Oxa CEO Gavin Jackson, the company is shock-absorbed from Trump tariffs due to its localized setup. This is because its technology products for the US market are produced in the US.

Oxa also says that its US production aligns well with the buy America rule that predated Trump tariffs. The rule prioritizes US produced, US sourced goods.

“I think that, by and large, the model in the US pre-and post-tariffs has always been that they reward companies and entities that are inwardly investing into the region. So Oxa is very much an inward investor into the US, so far we haven’t seen anything that has been cause for any alarm for us,” Jackson said.

Oxa serves several blue-chip companies like Ocado and BP. In the coming months, the company is seeking to ramp up its commercial offensive.

Future Expansion Plans

Oxa plans to expand its operations and grow its customer base moving forward. As part of Oxa US expansion strategy, the company is looking to get more businesses paying for its technology. According to Jackson, the company is shifting to general availability, from beta deployment for its tech products to clients in specific sectors where it operates.

One such area is asset monitoring, which includes surveillance or repetitive monitoring of huge industrial sites. BP, for instance, runs huge solar firms that hold solar panels. The panels are prone to heating, which can potentially result in fires. Oxa-powered autonomous vehicles drive through these firms to find hotspots.

Oxa will also be shifting from beta to general availability in two other areas – light towing and heavy towing. Light towing includes movement of autonomous baggage towing in airports, while heavy towing involves moving autonomous vehicles in ports.

Financial Performance

Oxa will be reporting its 2024 full year financial results soon. In 2024, the company reported losses amounting to £42 million on a £794,000 turnover. Jackson said that as a deep tech company in the venture stage, Oxa was still several years away from being self-financed.

“We are on the precipice of commercial scaling. We are well capitalised today and that can sustain us for any number of years,” he said.

Jackson holds that the shift from beta to general availability is the fastest path to achieve self-financing. He did not say whether Google was willing to increase its 3.5% stake in Oxa. He however said that current investors understand the startup will require more funding.