Former prime minister John Howard “trembles” at the thought of Donald Trump becoming the next US president.

But if Mr Trump becomes the Republican candidate he expects him to lose to Democrat Hillary Clinton.

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“I’m conflicted by that because my natural inclination would be to see a Republican in the White House, but I tremble at the thought of Trump being president. There’s an instability about him that bothers me,” he told Sky News on Sunday.

Howard expects Clinton to come out on top. Photo: Getty

Mr Howard also spoke about local politics.

He believes industrial relations have returned to the 1980s, saying there should be individual contracts.

“The idea you can’t make a contract directly without the injection of a union is absurd,” he said.

He criticised unfair dismissal laws, saying it’s tough on small firms to have to pay “go-away money” for troublesome employees.