Europe should not celebrate the Democrats’ victory in the midterm elections for one main reason: it will give Donald Trump a free hand to intensify the trade war against the EU itself.

Analysts and diplomats identify three key reasons why this scenario is dangerous for Europe:

• Focus on external pressure: Faced with a hostile Congress at home, Trump will shift all his attention to where he has the greatest legal freedom and faces almost no restrictions—foreign policy and international trade.

• Rising tariffs and economic demands: Instead of harmonizing relations, Europe will face new harsh tariffs, economic ultimatums, and even more complaints from the White House.

• Political deadlock over Ukraine and NATO: Even if Democrats approve financial aid for Ukraine, Trump could simply block or delay the release of those funds (using legal loopholes such as a pocket veto), shifting all the costs and security problems onto the shoulders of Europeans.

For investors and markets, this means that a Democratic victory will not bring back the “good old days,” but will only provoke Trump into taking new, unpredictable steps regarding the European economy.$HOT $BNB #USMidtermElections