[Editorial] The Bigger Challenge Comes After U.S. Midterms... Prepare for Trade Uncertainty

U.S. President Donald Trump. White House

The U.S. midterm elections, watched closely around the world, will be held on Nov. 3 (local time). Local media expect Democrats to have a strong chance of winning a majority in the House, while the Senate race is expected to be close. Depending on the results, Republicans could face checks on their unilateral policy agenda after controlling the White House and both chambers of Congress.

That does not mean South Korea can expect its trade uncertainties to ease. The standoff between the White House and Congress could increase uncertainty. U.S. President Donald Trump has warned that if Democrats take control of Congress, he will become “Mr. Veto” and veto bills one after another.

If Democrats gain control of Congress, they are expected to push to repeal some of the legal provisions Trump has used as the basis for imposing tariffs. They could hold votes on measures such as the “Trump Tariff Repeal Act,” introduced by Senate Minority Leader Chuck Schumer. If Democrats take the chairmanships of trade-related committees, they could also investigate how the hundreds of billions of dollars in U.S. investment funds promised by South Korea, Japan and others are being deployed.

However, the Trump Administration’s tariff policy will not be easy to roll back even if control of Congress changes. President Trump can use his veto power and statutory executive authority to maintain or strengthen the tariff policy. Foreign media have reported that the White House began preparing months ago for ways to advance key policies, including tariffs and government spending, without congressional approval, in anticipation of Democrats taking control of Congress.

Some Democratic candidates are calling for tighter regulations on data center construction. If the results of gubernatorial elections affect artificial intelligence (AI) infrastructure investment plans, South Korea’s semiconductor industry could also feel the impact. South Korea must also watch for volatility in global oil prices and inflation stemming from the course of the war in the Middle East.

According to the Pew Research Center, 74 House members have already been confirmed as leaving office after this election, the highest number since 1992. The government should broaden its trade consultation network with the new Congress, key committees and members of both parties. It also needs industry-specific plans to respond to changes in policies on tariffs, investment in the United States and AI. The U.S. balance of power could change, and our approach should not remain unchanged.

This content was produced with the assistance of AI translation services.