It might surprise everyone but trade between the two countries has increased dramatically…

The last decade has seen a massive increase in two way investment.

Export to US for goods were $13 Billion and $7 Billion for services, in 14/15 year. US is the biggest investor in Australia and Australia invests more in the US than any other country.

Those that think the US isn’t important don’t think.
How will Trump affect our business and is he likely to be elected, so it matters.

Let’s deal with the latter can he win. His odds of winning have firmed from 100/1 to an even money favorite so of course he can win.

Will he win while he’s no sure bet I think the email blunder for Hillary Clinton will make it unlikely she can win, it renders her a security risk among the mainstream voters.

Trump negative will be that in order to get America manufacturing industry going he will have to change the trade imbalance between the Chinese Yen and American Dollar.

He’s unlikely to remove free trade which the USA benefits from but will either put tariffs on Chinese goods or give preference to USA firms. The USA imports 53% of its computers from China and the USA will look to manufacture these themselves. USA will also look to revive its automotive industry.

Will this affect Australia not much we may lose some trade from China but unlikely to be significant and do stand to pick up more from the US.

Trump will probably cause a rise in the US dollar against the Australian dollar and make our exports more competitive. Small business will be well placed to gain on this.

By Terry Murphy Simple Economics 4/9/16 forster@accountingandmore.com.au