Trump’s victory has shocked many in the City of London but, speaking shortly after Trump’s win was confirmed, Keith Wade, the chief economist at Schroders, said Theresa May’s government might indirectly benefit from the latest groundswell of populist sentiment.
Wade said: “It is another example of the depth of feeling of populism and feeling against globalism to the extent that Europe takes that on board and maybe it would strengthen the UK’s hand in negotiations with the European Union.
“In some ways it does increase the likelihood the UK does gain some concessions with its Brexit negotiations.” In the run-up to the election Trump described a potential US election victory as “Brexit plus plus plus”.
With controlling immigration a central part of Trump’s campaign, Wade said the ramifications may force the EU to rethink its until now uncompromising view that being a member of its single market also requires the freedom of movement of people.
Wade said that following the UK’s Brexit vote in June, Trump’s win was another example of the political status quo being “turned upside down” and warned this could be a portent of things to come with a number of key elections coming up in Europe next year.
Italy will next month hold a referendum on constitutional reform, while in 2017 national elections will be held in the Netherlands, France and Germany. Wade added: “We could see political risk really ramping up in Europe as well.”