Trump's midterm losses could give China, India and US allies room to push back on tariffs and trade deals

The mid-term elections in the United States, where Democrats secured majorities in both the Senate and House, may embolden trade partners to push back against former President Donald Trump's aggressive policies. However, caution is advised to avoid provoking him during his final two years in office. The economic rival, China, could gain a perceived upper hand in ongoing talks and prompt allies in Asia to delay investment commitments worth hundreds of billions of dollars.

Allies in Europe may also face unpredictable trade issues, while India may adopt a wait-and-see approach in its negotiations with the United States. China, the biggest US rival, may attempt to exploit Trump's weakened political position, but Democratic control of Congress could limit his ability to offer concessions.