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View all search resultsTrump’s midterm humbling offers little relief for Southeast Asian exporters
The Democrats’ flipping of Congress could increase pressure on the White House, but Trump retains broad authority over trade and foreign policy, leaving Indonesia and other exporters exposed to protectionist US import tariffs.
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Attendees listen as United States President Donald Trump speaks on Oct. 14 during a campaign rally at Laughlin/Bullhead International Airport in Bullhead City, Arizona, the US. (AFP/Alex Wong)
T
he Democrats’ sweeping victory in both chambers of the United States Congress in last week’s midterm elections dealt a blow to US President Donald Trump, raising the question in Southeast Asia of whether Washington might soften its trade policy toward the region.
While the new balance of power could complicate Trump’s ability to advance his agenda over the next two years, analysts see little room for Congress to rein in his tariff push, with the implications for broader trade and foreign policy remaining unclear.
“I do not think it will make as much difference as might be expected,” said Deborah Elms, head of trade policy at the Asia-based Hinrich Foundation.
“He loves tariffs. He believes they will deliver jobs in manufacturing to the US.”
Read also: Trump tries to brush off midterms rout as Democrats celebrate
Speaking to The Jakarta Post on Thursday, she cautioned that Trump, criticized at home, might double down on trade in the coming two years, particularly if his domestic agenda becomes bogged down by congressional opposition and investigations pile pressure on his administration.
The president also retains the power to veto legislation passed by Congress. As democrats did not secure a two-thirds majority in both chambers, they will be unable to override a presidential veto, making any attempt to legislate away Trump's tariff powers difficult.
