Political analysts and economists said the US midterm election results could prompt countries to delay investment pledges made to avoid tariffs and give China an advantage in ongoing trade talks.
Key takeaways
Democrats winning US midterms may embolden trading partners to delay investment pledges made to avoid tariffs, potentially complicating Trump's upcoming Asian tour. Analysts suggest this shift could give China leverage in trade talks while increasing pressure on allies like Japan and South Korea.
- Democrats won majorities in both US chambers, citing tariffs and the Iran war as key reasons for the electoral rebuke.
- Japan and South Korea pledged $550 billion and $350 billion respectively in US investments to stave off tariffs last year.
- Experts warn that despite domestic political shifts, Trump may intensify pressure on allies to fulfill investment commitments.
Summarised automatically by AI from the original article by Free Malaysia Today. AI can make mistakes, so check the original for details.
Democrats won majorities in both the Senate and House, but will the outcome rein in or embolden Donald Trump?SEOUL: A backlash against President Donald Trump's Republican Party over rising living costs in the midterm elections could embolden countries around the world to resist his combative trade policies, which have raised prices for American consumers.
Democrats captured majorities in both the Senate and House on Tuesday, as US voters delivered a stinging rebuke for Trump's policies, specifically tariffs and the Iran war, which they blame for persistent inflation.
That could give countries more reason to slow-walk investment pledges they made to stave off tariffs, and hand economic rival China a perceived upper hand in ongoing trade talks, political analysts and economists said.
