Trump’s midterm defeat: Good news or fresh trouble for India’s trade deal?

The Indian Express · Ravi Dutta Mishra · 2026-11-04 11:31 UTC

The Democratic Party now controls both chambers of the US Congress. But that may not necessarily translate into greater scrutiny of Trump’s trade policy for two reasons — he still has executive powers to impose tariffs, and trade largely remains an issue with bipartisan support.

The Democratic Party has pulled of a sweeping victory in the 2026 US midterm elections, taking firm control of both legislative bodies that comprise the US Congress — the House of Representatives, which is the lower house, and the Senate, the upper house. The decisive results — driven by a cost-of-living crisis worsened by President Donald Trump’s tariffs and war on Iran — have now fueled hopes of a more predictable trade policy in the US.

This will also come as some relief to India, which among the handful of countries that faced steep tariffs but managed to avoid getting entangled in a one-sided trade agreement that would have imposed several one-sided demands on digital trade and pushed for access into politically sensitive sectors such as agriculture. The increased scrutiny from a Democrat-controlled US Congress, experts said, could result in more practical asks from American negotiators.

However, Trump’s second term has been marked by an unusually frequent use of executive orders, which could continue to spell trouble for trade partners across the globe. In fact, soon after the results, Trump posted a photograph of a red cap emblazoned with the word “VETO” on his Truth Social platform. Indeed, he told Fox News that he would work with Democrats on issues such as immigration, but threatened to veto any “insane” bills they passed.

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