Midterm blues: Why 'lame' duck Donald may push for a quick India-US trade deal
Following midterm election results, analysts suggest that President Donald Trump will likely maintain his economic nationalist trade strategy. The report indicates that Trump may pressure India for a quick trade deal to demonstrate American influence.
Why it matters
The outcome of US-India trade negotiations has significant implications for global supply chains and bilateral economic relations.
What does Democrats’ win in US midterm elections mean for India-US trade deal prospects? Will Donald Trump be forced to change his strategy?The unfavourable midterm election outcome is unlikely to prompt President Donald Trump to change course on trade, according to an analysis by Global Trade Research Initiative (GTRI).But, it’s important to note that both Democrats and Republicans have increasingly backed economic nationalism, domestic manufacturing and the strengthening of supply chains.Democratic lawmakers, too, favour protective tariffs to safeguard unionised workers and local industries.“The adverse midterm results won’t change President Donald Trump’s trade direction because both Democrats and Republicans now favor economic nationalism, domestic manufacturing, and strong supply chains,” says Ajay Srivastava, founder of GTRI.Unable to rely on Congress for every measure, Trump is expected to continue exercising powers already available to the administration.
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