Donald Trump’s promise to put America first helped propel him to the U.S. presidency, but it also has unleashed uncertainty on the global economy, The Associated Press reports.
Trump campaigned by threatening to end trade deals he deems unfavorable. He promised penalties for U.S. firms that create offshore factory jobs and threatened to label China a currency manipulator. He also campaigned on repealing Obamacare, and said he would erect a wall along the Mexican border and limit immigration.
“Donald Trump would be well advised not to seal off the U.S. economy from the world,” says Ulrich Grillo, head of the Federation of German Industries. “Otherwise, the lack of clarity about the future course will lead to significant negative effects for the world economy.”
Trump’s win on Tuesday happened against all odds. He became the nation’s 45th president, snagging 279 electoral votes to Democrat Hillary Clinton’s 228. Financial markets reacted quickly and negatively to the unknowns of a Trump stewardship of the world’s largest economy. Stocks stabilized today, while U.S. Treasury notes lost value, pushing up interest rates.
In a speech earlier today, Clinton called her loss to Trump “painful,” but said America owes Trump the chance to lead.
Still, key U.S. trading partners appear nervous.
“Taking Trump’s campaign rhetoric at face value, there is reason to believe that the policies he supports could push the U.S. into a recession and could create wider contagion,” says Megan Greene, chief economist at Manulife Asset Management.
In his victory speech, Trump adopted a softer tone but pledged to put U.S. interests first.
“I want to tell the world community that while we will always put America’s interests first, we will deal fairly with everyone. With everyone. All people and all other nations,” Trump said. “We will seek common ground, not hostility. Partnership, not conflict.”
