US Midterm Rebuke Weakens Trump's Trade Leverage with Japan, South Korea, India

Democrats won majorities in both the US Senate and House in Tuesday's midterm elections, a rebuke of President Donald Trump's trade policies and inflation that may embolden foreign nations to resist his demands. Countries like Japan, South Korea, and India may now slow-walk investment pledges or trade negotiations, as analysts say the results weaken Trump's leverage. However, some warn he could squeeze allies harder to prove his policies work, and a Democratic Congress may constrain his ability to offer concessions. China, facing a fragile trade truce expiring in January, may seek to exploit Trump's weakened position, though Democrats are likely to support tighter tech export controls and scrutinize supply chains for AI and semiconductors.