The surprise victory of Donald Trump creates increased uncertainty about economic policy ahead, said DNB Markets in a recent analysis.
Analyst Knut Magnussen at DNB Markets notes that Donald Trump has spoken vaguely about a large part of his economic policy, but has expressed a relatively clear message on tax and foreign trade.
There is still a question how many of the most extreme proposals will have an impact, in that they must be approved by both chambers of Congress before they can can be put into operation.
‘Trumps trade policy initiatives cause significantly greater concern’, wrote Magnussen in his analysis.
He pointed out that the new US president elect provides more freedom trade policy than for other areas.
‘He may raise tariffs for a period without congressional approval. And overtures he has made are so extreme that even a moderate version could have major negative consequences’, wrote Magnussen.
Source: NTB scanpix / Norway Today
