The election of Donald Trump as U.S. president creates new uncertainties for the global economy, say investors and economists, who see him as a reckless novice who might disrupt trade at a time when growth is already fragile.
Trump’s campaign was marked by fiery anti-foreign rhetoric and promises to tear up trade deals, restrict immigration and lock up political rivals. He was more conciliatory in his victory speech, arguing he would seek good relations with other countries.
But Trump’s shifting and radical positions on key issues and lack of details leave many uncertain about the direction of the world’s biggest economy and market.
“We simply can’t know what type of President Trump will be,” said Paul Ashworth, chief U.S. economist for Capital Economics, in a report.
“Will he be the demagogue from the campaign trail, who threatened to lock up his political opponents, punish the media, build border walls and start a global trade war?” said Ashford. “Or is he capable of becoming a statesmanlike figure who leads in a more measured manner?”