Context: The Democrats' decisive victory in the November 4 midterm elections has significantly altered the political balance in the U.S. Congress, potentially weakening President Donald Trump's ability to pursue unilateral policies.
The New York Times projections indicated that Democrats could secure nearly a 13% lead in the national popular vote for the House of Representatives, marking their strongest midterm performance since 1976.
The results are being viewed as a rejection of Trump's economic and foreign policy decisions, potentially turning him into a lame-duck President for the remainder of his term.
Background: Trump's 'America First' Policy
America First: A protectionist and unilateral policy approach aimed at prioritising American economic and strategic interests through tariffs, trade restrictions and pressure on other countries.
Reciprocal tariffs (July 2025): Trump imposed reciprocal tariffs on 157 countries, arguing that they followed unfair trade practices against the U.S.
Impact on India: Indian exports faced tariffs of up to 50%, partly linked to India's imports of Russian oil, even while India and the U.S. were negotiating a bilateral Free Trade Agreement (FTA).
Economic consequences: Higher tariffs increased import costs, contributed to inflation and slowed economic growth in the U.S.
U.S. Supreme Court intervention: The Court ruled that the reciprocal tariffs were illegal, preventing further economic disruption.
Iran War: Trump's subsequent military campaign against Iran disrupted global oil and gas supplies, affected downstream industries and supply chains, and increased global economic uncertainty.
Impact on American households: One estimate placed the additional cost of the Iran war at approximately $2,000 per U.S. household, absorbing nearly half of the average household's income gains.
These economic consequences contributed to Republican electoral losses, although Trump continued to defend his military decision.
How Can Democrats Check Presidential Powers?
Congressional control: The Democrats can use their dominant position in Congress to exercise legislative and oversight powers over the Trump administration.
Power of the Purse: Under Article I, Section 9, Clause 7 of the U.S. Constitution, no money can be withdrawn from the U.S. Treasury except through appropriations made by law.
Congress can restrict or deny funding for executive programmes and policies.
This provides an important constitutional mechanism to limit unilateral executive actions.
Congressional oversight: The Constitution requires regular publication of statements and accounts of public receipts and expenditures.
Congress can scrutinise government expenditure, investigate executive decisions and demand accountability from the administration.
Oversight can help prevent misuse of public funds and arbitrary executive actions.
Presidential veto: Trump can veto legislation passed by Congress, creating a potential institutional confrontation. However, Congress can override a presidential veto with a two-thirds majority in both Houses.
Role of Congress in Regulating Trade and Tariffs
Constitutional authority: Article I, Section 8 of the U.S. Constitution empowers Congress to:
Lay and collect duties, imposts and excises.
Regulate commerce with foreign nations.
Trade Promotion Authority (TPA):
A legislative framework through which Congress delegates defined trade-negotiating authority to the President.
Establishes negotiating objectives, procedures and conditions for trade agreements.
Enables Congress to consider trade agreements through expedited procedures, generally involving an up-or-down vote without amendments.
The last TPA was enacted in 2015 and expired in 2021.
Potential Democratic intervention: The article argues that Congress should enact a new TPA to establish clearer limits and conditions on presidential trade negotiations and tariff decisions.
Implications for India
Greater negotiating leverage: A politically weakened Trump administration may provide India with greater bargaining space in ongoing bilateral trade negotiations.
Bilateral Free Trade Agreement (FTA): India has been seeking a balanced trade agreement with the U.S., but certain American demands have remained contentious.
Agricultural market access: The U.S. has pushed India to open its markets to major cereals and dairy products, raising concerns regarding Indian farmers and domestic agriculture.
Generic pharmaceutical industry: Indian generic drug manufacturers have faced threats of higher tariffs unless they invest in the U.S.
Food and health security: These demands could affect India's agricultural interests, affordable medicine production and domestic health security.
Opportunity for India: New Delhi can utilise the changed political environment in Washington to negotiate a more balanced agreement and protect sensitive domestic sectors.
Significance of Congressional Checks and Balances
Separation of powers: The U.S. Constitution distributes governmental powers among the Legislature, Executive and Judiciary to prevent concentration of authority.
Checks and balances: Each branch has mechanisms to restrain the exercise of power by the others.
Congressional oversight: Legislative scrutiny of executive actions is particularly important when the President relies extensively on executive powers in areas such as trade, foreign policy and national security.
Global implications: Changes in U.S. domestic political balance can influence international trade, global supply chains, energy markets and bilateral relations.
Important Constitutional Provisions for UPSC
Provision
Significance
Article I, Section 8
Congress's powers over taxation and foreign commerce
Article I, Section 9, Clause 7
Congressional control over public expenditure through appropriations
Article I, Section 7
Legislative procedure and presidential veto
Article II
Executive powers of the U.S. President
Article III
Judicial powers of the U.S. Supreme Court and federal judiciary
