2016 is turning into a surprising year…First the Brexit vote changing direction of the EU. Then November 8 unfolds and introduces Donald Trump as US President elect.

But will it really be as bad as some have suggested?

In terms of world trade this is going to be a very interesting four years (possibly eight depending on what happens during the 2020 election). Certain trade agreements are now under threat, namely NAFTA (North American Free Trade Agreement) and the soon to be signed, or not TTIP (Transatlantic Trade & Investment Partnership). Trump has even suggested leaving the World Trade Organisation.

As a consequence of the recent election result Asian markets got the jitters with the Japanese Yen strengthening against the US Dollar; challenging Japan, as they try to reinvigorate their export.

The Mexican Peso tumbled 11% on the news of Trump’s election success and although it rallied late on it was still trading 8% lower than the previous day. Investors are expecting the Mexican Government to initiate contingency plans whatever they might be, but investors expect the central bank to either hike interest rates or to buy up large amounts of the currency to stabilise it.

The President elect has indicated that trade tariffs could be reintroduced on products from China.

What it means for UK Business?

Before Brexit, President Obama suggested that the UK would be at the back of the queue for any trade negotiations should Brexit prevail; President elect Trump on the other hand has said that Britain will be further up the ladder. Could this be a bonus for the UK?

If only we knew when/if Article 50 is going to be triggered and on what terms, perhaps this current uncertainty can be put to rest.

With certainty TR Logistics will be following events very closely...

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