Congress has the right to regulate commerce and set import duties, but Trump exploited existing laws to impose tariffs under the guise of national security or unfair trade practices.
Trump is likely to use his presidential veto against the Democratic Party's efforts to limit his powers.
Questions have been raised about whether Trump will immediately carry out threats, such as imposing a 100% tariff on European countries that levy a digital services tax on giant American technology companies, or whether a loan of 3 billion euros (3.37 billion dollars) from the European Investment Bank to Airbus will undermine what has largely been considered a transatlantic trade truce since 2025.
In this context, analysts said the elections might provide some countries in Asia with additional justification to delay the investment commitments they made to avoid tariffs, and might give China, the economic rival of the United States, an advantage in ongoing trade negotiations.
Chim Li, an industrial policy analyst at The Economist's Intelligence Unit in Beijing, noted that the overall economic relations between the United States and China are likely to remain in a state of "fragile stability."
Trump's losses in the midterm elections could be a source of relief for Indian negotiators regarding a trade deal with the United States, which has been delayed as New Delhi strives to protect its farmers.
Anup Wadhawan, former Minister of Commerce in the Indian federal government, said: "After President Donald Trump's losses in the midterm elections, his ability to impose arbitrary tariffs will certainly face challenges. At some point, he will need Congress's approval for trade actions, and from that perspective, his position has weakened."