Donald Trump's election win and what it means for Australia's economy 

The election of Donald Trump as the next US President will have a long-term impact on Australia’s economy, but the impact may not be as bad as first thought.

Local markets collapsed immediately after Republican Trump’s shock victory over Hillary Clinton on Tuesday. But on Thursday things started to change.

And while Trump has championed protectionist rhetoric and restoring America’s economic prosperity at the expense of its trading partners like Mexico and China, he has also indicated he has a positive view of Australia.

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In the next four years, America’s economy is expected to transform into something very different from what the leading nation has known.

As the biggest economic change in the world, it will inevitably affect the rest of the world, including Australia.

But Trump has indicated he views Australia favorably, which could stand him in good stead if the new president implements policies he has said are smashing international trade deals and reintroducing trade barriers.

During his long campaign, Trump said he would prioritize the concept of protectionism, meaning he would protect local businesses.

And now he’s won the election, columnist Charles Firth explained to News.com.au what this means for America and other nations like Australia.

The political commentator said this concept of protectionism, which Trump so ardently supported, meant the government would support US companies – which in turn would benefit the everyday worker with higher wages and more stable employment.

This is the style of government that Democrats and left-leaning Americans have widely criticized.

They argue that corporations and corporations get all the benefits and leave the everyday worker to his own devices.

But Trump’s idea is to invest in local businesses on the assumption that the whole country would eventually benefit.

And this age-old style of protectionism is likely to have an impact on Australia.

Wealth Editor at The Australian James Kirby predicted Trump’s economic plan would send interest rates soaring in America, meaning the Australian dollar could fall and Australian mortgages could become more expensive.

With the US leading global trends, Trump’s call for higher interest rates could eventually push Australian interest rates higher.

Trump has also been a strong advocate for tighter trade borders between America and other countries — especially poorer countries.

Years of globalization policies have allowed poorer countries to benefit from US wealth by making products cheaper than they sell in the US without major tariff barriers.

Those were the years Trump described as “disastrous” for America.

While Trump’s proposed trade policy is expected to wreak havoc in Asian countries and Mexico behind closed doors, Australia could weather the storm as it’s still seen as a cheap trading partner.

Australian Prime Minister Malcolm Turnbull praised Trump as a “pragmatic businessman” after his election victory.

“He’s a businessman, a dealmaker and he will no doubt see the world in a very practical and pragmatic way,” he said.

Mr Turnbull also acknowledged that the relationship between Australia and the US is strong and that he wants to nurture it.

“Mr. Trump recognizes the solidarity Australia has shown to the United States, and the United States has shown Australia over 98 years that we have fought side-by-side with the United States in every major conflict,” said Mr. Turnbull.

And more good news for Australia: Just a day after Trump was elected the next US President, Australian equity markets have already recovered.