Donald Trump suffered one of the worst losses of his political career, as the Democrats both won the rooms of the United States Congress in the middle-class elections. High prices appear to influence voters, as according to a poll conducted on Election Day, about two-thirds of respondents said President Donald Trump’s tariffs had damaged the economy.
But what does the loss of Trump and a largely democratic Congress mean for Europe and markets?
One of the main issues is that of commercial tariffs. Although the Democrats took control of the two chambers of Congress, it seems that this will not stop Trump from continuing with tariffs, since they no longer depend on Congress.
After the Supreme Court brought down its emergency tariffs in February, the administration shifted them under the 301 section of US trade law. This road allows the president to act without the lawmakers’ vote.
Economists say, like foreign policy, trade is another power the president can unilaterally exercise without Congress. They do not rule out new tariffs against Europe, which would have an impact on US inflation, but also on the Federal Reserve decision making.
The Democrats will head the Senate commissions and decide which of Trump’s nominated ones will be confirmed when the new Congress takes office in January. Many also want to approve new funds for Ukraine.
The hardest part is spending this money. Over the past two years, the White House has canceled the funds already approved by Congress, holding them until the end of the fiscal year when they expire.
In practice, according to experts, this means that a Congress dominated by the majority democrats may draft the law on spending and helping Ukraine and the president not spend it.
The result of the US Muslim elections affected markets. The American stock contracts were recovered, as the increase also marked European ones. The defence shares, on the other hand, followed the opposite direction, as investors fear that Congress could already slow down the rise in American military expenditures Trump has promoted. The American dollar was already weakened in proportion to other major currencies, while the euro increased by 0.5%.
Even bitumen rose 1.3% by climbing $78 300, while crude oil Brant was traded near $1 104 per barrel.
Source Layer: Insander