President Donald Trump's Republican Party suffered a heavy defeat in the US midterm elections, with the opposition Democrats winning a majority in Congress. The result is being read as a verdict on the hardline policies Trump has pursued, and leaves Tokyo recalculating its relationship with Washington.
Trump has pushed hardline policies on tariffs, immigration and the war with Iran. With Democrats now holding a majority in Congress, the legislature could put a stop to those policies, making it considerably harder for Trump to govern as he wishes, according to ABC News.
Tariffs and car exports
Nomura Research Institute executive economist Naruhide Kiuchi told ABC that further additional tariffs are unlikely. Japanese exports, including cars, are therefore not expected to take a hit, he said.
Gasoline prices
Additional budget for the attack on Iran may not be approved, which would make continuing the war difficult and is expected to push gasoline prices down. Japan's government plans to cut subsidies in stages from December, with forecasts putting the price at around ¥190 per liter by spring.
Kiuchi said the price could reach the ¥180-per-liter range without subsidies. Trump's unpredictable words and actions have unsettled the world, and how the election result plays out is being watched closely.
The comments were broadcast on ABC's "news Okaeri" on November 5.