International trade

Iowa's wide-open midterm elections produced a historic flip: Democratic state Rep. Josh Turek, a two-time Paralympic gold medalist, defeated Republican Rep. Ashley Hinson for the U.S. Senate seat being vacated by retiring Sen. Joni Ernst. The race, called once 95% of votes were tallied, marked Iowa's first Democratic Senate win since 2015 and came despite President Trump's endorsement of Hinson. Libertarian Thomas Laehn also appeared on the ballot.

The result follows a year of voter frustration over prices, tariffs and the Iran war that turned the once-reliably-red state into a battleground. Iowa's governor's race, pitting Democrat Rob Sand against Republican Zach Lahn to succeed retiring Gov. Kim Reynolds, remains a separate closely watched contest.

President Trump rallied in Sioux City, Iowa, backing Senate candidate Rep. Ashley Hinson, Rep. Zach Nunn, and Rep. Randy Feenstra, telling supporters to "pretend I'm on the ballot" and warning that Democratic gains would threaten GOP wins on tariffs, trade and farm policy. Hinson, running against Democratic state Rep. Josh Turek in a tight contest that could decide Senate control, has distanced herself from Trump on issues like his Russia diesel deal, the Iran war's economic fallout, and tariffs, even as she campaigned alongside him. Polls show the race within a few points either way, with early voting already underway in Iowa.

President Donald Trump opened a 32-day campaign tour on Oct. 1 with a stop in Denton, Texas, touring Peterbilt Motors' truck factory ahead of an evening rally in Durant, Oklahoma. Addressing factory workers and company leadership, Trump touted American manufacturing and credited 25% tariffs on foreign medium- and heavy-duty trucks and non-compliant components under the USMCA with helping add more than 1,000 jobs at the facility. Peterbilt's parent, PACCAR, also makes Kenworth trucks at U.S. plants in Ohio, Mississippi, Washington, and Kentucky.

Trump used the stop to deliver an enthusiastic endorsement of Texas Attorney General Ken Paxton, calling him "the single greatest attorney general in the United States," as Paxton runs for U.S. Senate against Democratic Rep. James Talarico, with recent September polling showing Talarico slightly ahead. Campaign finance filings show $10 million in ad spending split evenly between attacking Talarico and promoting Paxton. Sen. Ted Cruz and Rep. Ronny Jackson, facing a safer reelection bid, were also present. The tour continues with stops in Alabama, Ohio, and Nebraska, part of a broader Republican push ahead of the November midterms.

The Sept. 23-25 state visit of Chinese President Xi Jinping to Washington produced several concrete agreements, following up on momentum from President Trump's May visit to China. The two countries launched the U.S.-China Board of Trade and Board of Investment, bodies agreed upon in May, and announced tariff relief on $30 billion worth of non-sensitive goods in each direction. A new working group will target barriers in agriculture and other sectors, while China committed to importing at least 10 million metric tons of U.S. coal annually in 2027 and 2028.

On counternarcotics, China agreed to restrict a class of dangerous drugs and limit exports of fentanyl precursor chemicals, building on law enforcement cooperation that led to drug-trafficking arrests of Chinese nationals in August. No joint military statement was issued, though China's Foreign Ministry said both militaries agreed to prioritize a new crisis-communication mechanism. Unlike in May, Trump indicated Taiwan was not a major topic this time, even as tensions and Chinese military activity near the island continue.

The U.S. Supreme Court, in a 7-2 unsigned order, declined to disturb a preliminary injunction halting enforcement of a new U.S. Postal Service rule ahead of the 2026 midterms, drawing praise from officials in Michigan, Illinois, Colorado, and other states. The rule, issued after a March executive order from President Trump, would have required states to submit lists of mail-eligible voters and adopt standardized, trackable envelopes, with USPS withholding delivery of noncompliant ballots. The court said the government was unlikely to succeed on the merits given the midterms' proximity; Justices Alito and Thomas dissented, while Kavanaugh agreed the restrictions should not take effect for this election but suggested the government's underlying arguments could be reconsidered if similar rules were proposed earlier for a future election.

Michigan and 24 other states, including Illinois, sued within hours of the rule's publication, leading to a restraining order and then a Sept. 4 injunction that the high court left intact. Officials in Michigan, Illinois, and Colorado called the ruling a win for state authority over elections, while Trump denounced the decision on social media, criticizing the justices he appointed. The court did not rule on the rule's underlying legality, leaving that fight to continue in lower courts; existing mail-ballot processes remain unchanged as states begin distributing ballots for November. Attorney General Todd Blanche said the ruling turned partly on timing and that election-security efforts would continue beyond this cycle. In North Carolina, postal workers and union leaders have publicly defended mail-in voting's integrity amid ongoing fraud claims, as absentee voting proceeds under established security measures.

At the Texas GOP's midterm convention in Dallas, Republican candidates and officials credited President Trump's tax policies—including new breaks for tips, overtime and the extension of 2017 tax cuts—for helping working families, while blaming Democrats and the Biden administration for high grocery and gas prices. Attorney General Ken Paxton, the GOP Senate nominee, attacked Democratic opponent James Talarico's tax record, while U.S. House candidates Carlos and Monica De La Cruz emphasized their working-class backgrounds and GOP tax relief. Gov. Greg Abbott and Lt. Gov. Dan Patrick framed the election as a choice between conservatism and "socialism," touting Texas's low-tax economy without addressing rising costs.

Democrats countered throughout the convention, arguing Republicans, tariffs and the Iran conflict have driven up costs for consumers while benefiting corporations and the wealthy. Talarico, Gina Hinojosa and Vikki Goodwin proposed raising taxes on corporations and the wealthy. The clashing narratives over affordability and economic credit are expected to shape Texas's competitive midterm races, particularly in battleground U.S. House districts.

At the Texas Republican convention in Dallas, GOP leaders and candidates leaned on new federal tax breaks — including deductions for tips and overtime and an extension of 2017 tax cuts — as evidence President Trump and the party have helped working families. At the same time, they blamed Democrats and the Biden administration for high grocery and gas prices, largely avoiding discussion of Trump's tariffs and the Iran conflict, which polls show voters associate with rising costs. Attorney General Ken Paxton, the GOP's U.S. Senate nominee, touted his own tax proposals while attacking Democratic opponent James Talarico's tax record. Gov. Greg Abbott and Lt. Gov. Dan Patrick emphasized low taxes and a strong state economy without addressing affordability concerns.

Democrats, including state party chair Kendall Scudder and national committee officials, used the convention to argue Republicans have driven up costs while favoring corporations and the wealthy. The dueling narratives underscore how affordability could shape competitive Texas races this midterm cycle.