Democratic Control of Congress Could Open Space for U.S. Deals on Debt and Trade

According to Jin10, U.S. President Donald Trump will face a Congress firmly controlled by Democrats next January, potentially leading to prolonged policy gridlock over the following two years, along with aggressive investigations and impeachment efforts. The parties could also reach agreements with broad effects on the U.S. economy. Some of Trump's policy positions align with Democratic priorities, and deadlines to avert crises such as a debt default or government shutdown could encourage compromise. Possible areas for agreement in the new Congress include abolishing the debt ceiling, increasing defense and domestic agency spending, extending Affordable Care Act subsidies, setting caps on drug prices, and reaching new trade agreements to reduce tariffs that are pushing up inflation. Experienced Democrats and Republicans in Washington told interviewers that budget and debt-ceiling deadlines forced the parties to compromise on fiscal policy during Trump's first term. In 2019, the Democratic-controlled House also helped advance the United States-Mexico-Canada trade agreement.