Export Markets Brace for Trump Presidency
Donald Trump is now President-elect Trump and that’s causing concern by countries that do business with the U.S.
Throughout his campaign Trump has hinted at a number of policies that would impact trade, including withdrawal from the World Trade Organization, scrapping the North Atlantic Free Trade Agreement, suggesting 35% tariffs on goods from Mexico and a 45% tariff on goods from China. Now that he is President, investors are anxious to see which predictions will come true.
In an article on agrimoney.com, investors provide insight on what is to come regarding trade under the Trump administration.
Ed Hugo, head of research at VSA Capital, says that while it’s too early to tell if Trump will implement all of the things he said on the campaign trail, he does feel that some of the proposed trade agreements are not likely to come to fruition. Hugo says the Transatlantic Trade and Investment Partnership (TTIP) and Trans Pacific Partnership (TPP) will likely not be ratified.
“Trump will kill them,” says Edward George, head of research at Ecobank. He went on to say that nothing is going to really change until his team is in place.
Both investors agree that Trump may be supportive of the post-Brexit UK, although his allegiance to the region was more evident when it was still part of the European Union.