Trump’s post-election agenda could cause issues for the GOP.
October 30, 2026
While Tuesday’s elections are likely to reflect that voters want to de-escalate economic and military situations, Trump will probably ignore this.
Sources on Capitol Hill, industry bodies and current and former officials say the president wants to implement ambitious economic policies, including reinstating hefty import tariffs that were invalidated by the Supreme Court earlier this year. Additional trade barriers that could result in new tariffs will begin to come into play over the next few weeks, while military presence has increased in the Middle East and the White House has heavily suggested there will be additional strikes against Iran.
Republican insiders and corporate lobbyists expect the president to ramp up policies following the difficult mid-term elections.
“If they increase tariffs, everything becomes much more volatile, uncertain and aggressive,” said one corporate lobbyist who wished to remain anonymous.
There is considerable opposition to this in the GOP. Many candidates will have seen the impact of increased living costs and many within the party hope the leadership will draw the opposite conclusion. New aggressive trade barriers could turn off everyday consumers, cause the stock market to drop and cause oil prices to increase. This would have knock-on effects during the upcoming congressional terms and the 2028 election.
A White House spokesperson added: “Any announcements regarding trade tariffs will be made by the administration. Until then do not pay any attention to any tariff reports.” The administration did not wish to comment on their military plans.
Many GOP candidates in border constituencies have moved away from the new trade war with Canada which began during the summer after talks between Washington and Ottawa broke down.
“These tariffs are causing problems,” said one Republican in Michigan.
High fuel prices have also caused problems for many. After the U.S and Israeli attacks on Iran earlier this year prices soared. Farmers have struggled with high diesel prices, while commuters in the suburbs have become frustrated. Goldman Sachs analysts noted that prices have been consistently high with little or no strikes. Any new active conflict will likely cause prices to increase.
“After the midterms some Republicans in Congress will feel they can finally confront Trump,” said one former congressional aide.
It appears the executive will press ahead.
“The executive has a lot of power regardless of who is in control of the House and Senate,” said one senior administration source who wished to remain anonymous.
The Pentagon is preparing for potential new conflict in the Middle East. The USS Theodore Roosevelt aircraft carrier strike group left Japan in late October and should arrive in the region by late November. Over 2000 marines have also been moved from the Pacific.
The State Department and Pentagon have also moved some personnel away from the area as they did prior to the joint U.S-Israeli attack on Iran in February. This has raised speculation that a new escalation may occur.
Several trade policies will come into play.
Jamieson Greer – the U.S Trade Representative – is concluding a report into over capacity in manufacturing in 16 countries. This will open the doors for new tariffs to be placed on key trading partners including the EU and China. Although the report has been delayed several times due to the election a representative from the USTR said “The White House will continue to pursue policies that ensure American workers, farmers, and businesses are treated fairly.”
The Commerce Department has also concluded a report into medical products which could lead to increased tariffs. Although investigations into industrial robots, machinery and wind turbines were paused earlier this month, the administration could increase tariffs on these products in the coming months. Officials must report back to the president within 180 days.
Other trade measures are being considered. Recently the president has chosen not to implement new sweeping tariff powers from a sanctions bill passed in September on Russia. However he does still have the power to place tariffs of up 100%. A former congressional insider said whether he does or not will depend on trade negotiations with India – a big purchaser of Russian crude.
“They are holding onto it as an option. If they get a deal with India they probably won’t use it,” said the former aide.
The sanctions bill also means the executive can increase tariffs on China – another big purchaser of Russian energy. Washington and Beijing have agreed to extend the temporary ceasefire until early January however issues remain with rare earth minerals and high tech exports.
