Mr Trump, a billionaire property mogul, has slammed the US government-led TPP as a "horrible deal" and said earlier free trade pacts with countries like Mexico allowed rivals to "beat" America and cost local jobs.

Fanning fears of a possible trade war, the tycoon has outlined plans to slap new taxes on Chinese imports.

Mr Trump has also pledged to close a private equity tax loophole, limit immigration and deport 11 million undocumented arrivals. His immigration policy is at odds with the US Chamber of Commerce, which views immigrants as a valuable source of labour and extra consumers for the economy.

Mr Trump is the Republican frontrunner, ahead of senators Ted Cruz and Marco Rubio.

Winning: The conquering hero addresses his euphoric crowd. AP

Senator Sanders, a self-described democratic socialist who is campaigning on fixing income inequality, has pledged to fund free university education and government-funded healthcare by slugging the rich with higher taxes and imposing a new tax on Wall Street "speculation".

"The American people bailed out Wall Street, now it's time for Wall Street to help the middle class," Senator Sanders said in a jubilant victory speech on Tuesday.

Of possible consequence for Australia's BHP Billiton and Rio Tinto, the 74-year old has also co-sponsored a bill in the US Senate attempting to overturn a federal land swap deal that allows the mining giants to expand their jointly-owned Resolution Copper mine in Arizona.


Despite his resounding win on Tuesday, Senator Sanders is considered a long-shot to win the Democratic nomination.

Democratic presidential candidate Hillary Clinton gestures to supporters at her New Hampshire presidential primary campaign rally, Tuesday. Elise Amendola

However, his popularity is forcing Hillary Clinton further to the left on economic policy.

Like Senator Sanders, Mrs Clinton has opposed the TPP trade accord, despite championing it as President Obama's secretary of state.

Both Democratic candidates support increasing the $US7.25 hourly minimum wage.

Echoing the 74-year old Senator, she has vowed to crack down on prescription drug prices, a plan that has caused drug company stock prices to fall.

Senator Ted Cruz led the government shutdown in 2013. Luke Sharrett

Americans spend the most on pharmaceutical drugs in the world and often pay higher prices than counterparts overseas for the same medicines.


Brad McMillan, chief investment officer at US broker-dealer Commonwealth Financial Network, said the political success of Mr Trump and Senator Sanders "should shake the market."

"This is the most uncertain political environment we've had in years, if not decades," he said.

"If that really suggests a change in how Washington is going to start thinking, then business is going to be affected across the board."

One of the world's richest investors, billionaire Saudi Arabian Prince Alwaleed bin Talal, in December lashed Mr Trump as a "disgrace" to America after the Republican candidate called for a temporary immigration ban on Muslims.

The prince is a major investor in bank Citigroup, social media giant Twitter and Four Seasons Hotels & Resorts.

In the Republican race, Iowa caucus winner Ted Cruz who is running second behind Mr Trump, has vowed to break the Washington and Wall Street "cartel", by stamping out backroom deals for lobbyists.

Positively for business, Senator Cruz and Mr Trump want to slash taxes on corporate and personal income.

Senator Cruz, a small-government ideologue led the government shutdown in 2013, taking the US to the brink of a sovereign debt default, causing global stock markets to tumble.


He has voted to close the business-friendly Export-Import Bank and wants to the Federal Reserve to have less discretion in stimulating the economy by returning to the "gold standard" in setting interest rates.

Mr Pelsoky said the electorate's anger towards the elite and economic establishment, underlined by the rise of outsiders, may make the Fed less willing to respond to falling stock prices.

"The Fed defines establishment and has a policy that has benefited the wealthiest in the US economy," he said.

"Unless Main Street is hurting, it makes it more difficult for the Fed to reverse course on interest rates if the stock market falls, because it would be seen to be bailing out Wall Street."

Wall Street donors have been injecting funds into the campaigns of mainstream Republicans Jeb Bush and Marco Rubio, as well as Mrs Clinton.

Peterson Institute for International Economics senior fellow, Jacob Kirkegaard, said it was a "little too early" in the election cycle for candidates to have an immediate impact on the economy and markets.

He said the rise of the outsiders bolstered the chances of former New York major and ex-banker Michael Bloomberg entering the presidential race as an independent.

"In that situation, it's fair to assume corporate America's money would back him," Mr Kirkegaard said.

Mr Trump has struck a chord with American voters by self-financing his campaigning and not being "bought" by millions of dollars in campaign contributions from business professionals.