U.S. President Donald Trump is expected to focus on stabilizing prices ahead of the upcoming midterm elections. Specifically, adjustments are anticipated in tariffs, oil prices, and policies related to data centers.
Researcher Huang Shanhai from LS Securities recently noted that the likelihood of the Democratic Party winning the midterms has significantly increased. He explained that the probability of Democrats controlling both chambers was only 20% in October last year and has now approached 40%. The strong performance of Democrats in the Texas primaries confirms this trend. Even in Texas, a traditionally Republican-leaning state, Democrats are leading in early voting, which is expected to put some pressure on President Trump.
To reverse this electoral trend, Trump is likely to focus on economic policies, especially price issues. This seems to consider the reality that, given the high debt levels in the U.S., additional fiscal spending is difficult. Huang’s analysis indicates that while tariffs are being eased through measures like removing tariffs on food and beverages, issues related to oil prices, raw materials, and electricity costs still require solutions.
Additionally, Trump emphasized in his State of the Union address the need to reduce current energy costs and continue investing in social infrastructure. Measures to stimulate the economy using profits from large tech companies are also likely to persist.
These economic moves appear to be strategies by the Trump administration to maintain the Republican advantage in the midterms. It is important to monitor how future political and economic developments will influence domestic policy changes in the U.S.