Malaysia may face prolonged US trade uncertainty after Democratic midterm win

The new Democratic-led Congress is unlikely to deliver Malaysia a quick shift in US trade policy, experts warn, because President Donald Trump is expected to strongly oppose attempts to reverse some of his tariff measures.

Malaysia’s hope for a change in US policy is therefore unlikely to be realised for some time, even after Republicans lost control of both Congress and the Senate.

Why the election may not bring relief

Trump’s Republicans suffered their worst rout in recent times in the US midterm elections on Tuesday.

They lost control of both Congress and the Senate by wide margins, as voters expressed anger at Trump over surging living costs caused by the Iran war.

The result is expected to put Trump on the defensive.

Experts also expect the president to double down on his controversial tariff regime rather than retreat from it.

That would limit the immediate scope for a Democratic-led Congress to change the trade policy affecting smaller partners.

According to experts, there is little indication that the new Congress would be of much help to smaller trade partners such as Malaysia.

The political shift in Washington may therefore create opposition to Trump’s tariff measures without producing a near-term policy change for Malaysia.

The central uncertainty is whether the Democratic-led Congress can overcome Trump’s opposition as it tries to reverse some of his tariffs.

For Malaysia, the election result offers no clear sign that its hope for a shift in US trade policy will be realised soon.

Source: South China Morning Post