The Republicans managed to avoid the worst-case scenario in the US midterm elections on Tuesday, outperforming many polls in Senate and gubernatorial races and picking up three seats in the upper chamber in the process. But the Democrats’ win in the House of Representatives will still put a leash on the president, and that might translate into pressure for Donald Trump to drop the trade war.
That is the opinion of JPMorgan strategist Marko Kolanovic, who wrote in a note on Wednesday that the “anti-business” agenda that emerged during Trump’s second year in office was not supported by a red wave that could have helped the Republicans maintain control of the House.
That means that Trump has few choices to help keep the economy churning, except for backing down from a trade war that is weighing on the economy.
“As the president cannot count on Congress or the Fed for more easing, he will need to do what is in his power to keep the economy rolling – drop the damaging trade war and turn it into a winning deal,” Kolanovic wrote, per Bloomberg.
An e-mail from JPMorgan on Friday also noted that, despite avoiding a massive blue wave that had a small chance of handing the Democrats a majority in the Senate, the Republican’s showing in the election was actually worse than any in the last 100 years, adjusted for economic conditions.
The Atlantic’s Derek Thompson explained a striking chart from the investment bank, via Twitter:
The question Trump may be asking himself in the aftermath of the election and in anticipation of further interest-rate increases: “if I lost that many House seats with a strong economy, what will happen in 2020 if the economy tanks?”
With a zero percent chance the Democrats in the House will want to hand him legislative wins to shore up the economy, a deal with China may be his only option.
President Trump started the trade war against China. China retaliated by imposing tariffs on "red states" that elected Donal Trump.
During the midterm elections, Iowa farmers blamed Trump for the trade war. Iowa farmers can no longer sell their soybeans to China. Iowans elected Democrats to the House of Representatives.
Texans also elected Democrats to the House of Representatives. Due to Trump’s trade war, Texans can no longer export 10 million barrels of oil to China per month.
President Trump foolishly handed the House of Representatives to the Democrats by waging a trade war against China. In two years, Trump will hand the presidency to the Democrats, because Americans want to conduct business with China (which is the biggest buyer of American soybeans, oil, Boeing aircraft, GM cars, Apple iPhones, etc.).
President Trump started the trade war against China. China retaliated by imposing tariffs on "red states" that elected Donal Trump.
During the midterm elections, Iowa farmers blamed Trump for the trade war. Iowa farmers can no longer sell their soybeans to China. Iowans elected Democrats to the House of Representatives.
Texans also elected Democrats to the House of Representatives. Due to Trump’s trade war, Texans can no longer export 10 million barrels of oil to China per month.
President Trump foolishly handed the House of Representatives to the Democrats by waging a trade war against China. In two years, Trump will hand the presidency to the Democrats, because Americans want to conduct business with China (which is the biggest buyer of American soybeans, oil, Boeing aircraft, GM cars, Apple iPhones, etc.).
Since Donald Trump failed to get Russia to fight China, he will try to go the other way to get China to fight Russia, Getting better relation with China is a show of his success and will be of help for his plan for his second term election. "American First" Polocy is great to all Americans and no one would dare to go against it, including the Democrats. There is still a long way for Trump to fight with the opposition party. Donald Trump will not drop dead nor will be easily impeached because because of he lost control of the house in the mid-term election.
Since Donald Trump failed to get Russia to fight China, he will try to go the other way to get China to fight Russia, Getting better relation with China is a show of his success and will be of help for his plan for his second term election. "American First" Polocy is great to all Americans and no one would dare to go against it, including the Democrats. There is still a long way for Trump to fight with the opposition party. Donald Trump will not drop dead nor will be easily impeached because because of he lost control of the house in the mid-term election.
Trump is a moron. He thinks "tariffs are good" and "trade wars are easy to win".
Trump is a moron. He thinks "tariffs are good" and "trade wars are easy to win".
HAHAHAHA TOLD U SO!! Trump will be wagging his tail in the summit begging Xi. And this time Xi will say sure and do nothing hahahha
HAHAHAHA TOLD U SO!! Trump will be wagging his tail in the summit begging Xi. And this time Xi will say sure and do nothing hahahha
Do Trump want a Trade war that he cant win? Could he find another country to replace China that was feeding US hungar of her consumers and corporate profits? Is his political brinkmanship intended to sell US military hardwares that are unfit to fight a modern war?
Do Trump want a Trade war that he cant win? Could he find another country to replace China that was feeding US hungar of her consumers and corporate profits? Is his political brinkmanship intended to sell US military hardwares that are unfit to fight a modern war?