Trump's midterm rebuke gives trading partners room to resist
SPY•Democrats captured majorities in both chambers of Congress, and analysts say the result could embolden trading partners to delay investment pledges or resist U.S. trade policies. Japan and South Korea pledged $550 billion and $350 billion in U.S. investments, respectively.
1. Partners may delay pledges
The Democratic victories could give countries more reason to slow-walk investment commitments made to stave off tariffs, analysts and economists said. Japan and South Korea pledged $550 billion and $350 billion in U.S. investments, respectively, under deals with Trump last year.
2. Trade talks face uncertainty
Analysts said India could take a wait-and-see approach as it negotiates a trade deal with the United States. The two countries agreed in February to a framework that reduced a tariff on most Indian goods to 18% from 50%.
3. China weighs its position
China may seek to use Trump's political weakness to strengthen its position in trade talks, analysts said. Others said a Democratic-controlled Congress could constrain deals with Beijing and support tighter technology export controls and supply-chain scrutiny for AI and semiconductors.
