Despite the pre-election polls pointing to a modest but comfortable win for Clinton, Donald Trump has won the Whitehouse. What does this mean for Australia, the economy and markets? A Trump presidency has serious implications for Australia from both a strategic and economic perspective. Strategically, the US is Australia’s most important ally. President Obama’s foreign policy approach has been to pivot towards the Asia-Pacific region while Trump has said that he wants to reduce America’s presence in the region.This might encourage China to accelerate its reclamation activities in the South China Sea. Any such destabilisation in the region would have serious consequences for Australia as it is a major shipping route for Australian businesses and China is Australia’s largest trading partner.