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Trump Tariffs and GOP Loss
The Republicans’ defeat may encourage countries to hold off on fulfilling investment commitments they made to avoid tariffs, and could give China an advantage in trade negotiations. Japan pledged $550 billion in investment, while South Korea pledged $350 billion. Although Donald Trump retains executive authority over tariffs, congressional scrutiny may give countries time to review the agreements, while Democrats are likely to push for tighter restrictions on China, particularly in technology and semiconductors. But analysts warned that Trump could increase pressure on allies to prove his policies are working, and that a Democratic victory does not necessarily mean he will back away from tariffs.
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