Democrats win control of US House and Senate, leaving Trump facing gridlock

Democrats take both chambers

Polls had pointed to heavy losses for Donald Trump and his Republican party before the vote on Tuesday, 3 November. Democrats had been favored to take the House of Representatives and had put Republicans on the defensive over the Senate, and the results since then show them holding both chambers. Stern reports that Republicans lost their majority in the House and in the Senate. In Maine, incumbent Republican Susan Collins lost to Democrat Troy Jackson, and in Michigan Democrat Abdul El-Sayed defeated Republican Mike Rogers.

Gridlock and the veto

Democrats now hold comfortable majorities in both houses, but the party still lacks a filibuster-proof majority in the Senate, which limits the near-term policy effect. Trump has said he would become 'Mr Veto', blocking any legislation the Democrats advance. Speaking to Fox News on Tuesday night, he touted his 'ultimate power' of veto to shut down bills passed by Congress. Jacob Funk Kirkegaard of the Peterson Institute for International Economics expects Washington to stall.

“I think we are looking at two years of complete 100% gridlock.”

Tariffs and Canada

The result is unlikely to bring Canada tariff relief any time soon, although it could improve Ottawa's position as on-again, off-again trade talks resume. Voters cited affordability as a main concern, and a Cato Institute survey from September found that about 75% believe the tariffs have raised prices. Trump's 25% tariffs on non-US made cars and trucks have led to layoffs in Ontario. Hakeem Jeffries and Chuck Schumer have pushed to rein in the Canada tariffs, but Trump's levies were largely imposed through executive orders without congressional approval. Ontario Premier Doug Ford reacted on Wednesday morning:

“I was doing cartwheels down the street”

Markets and the economy

Markets initially slid after the Democrats' gains, and the dollar followed global stocks lower, before rebounding after Trump accepted the results. Some investors worry that Democrats could push through AI regulation, especially if they also win the White House in 2028. Rising opposition among large majorities of Americans to data centers, the infrastructure behind AI, helped Democratic candidates win. Kirkegaard argues that local resistance could make those facilities harder to build, which could weigh on the valuations of big tech firms that benefited from the AI boom.

Reactions abroad

Iran's Parliament Speaker Mohammad Bagher Ghalibaf wrote on X that Americans said no to war, and that Iran endorses that message. Before the vote, Qatar-led mediators had been trying to restart US-Iran negotiations, though renewed fighting remains on the table, according to three US, Israeli and regional sources cited by Axios. Benjamin Netanyahu wants to resume fighting in Iran, but his political future is uncertain after Israel's recent election. German Defense Minister Boris Pistorius congratulated the Democrats and said Germany would keep cooperating with the Trump administration. South African President Cyril Ramaphosa told reporters:

“We have seen that the Democrats have taken control of the Senate and of the House, and the people of America have spoken.”

Ramaphosa said he expects the change to introduce a new era in world relations. From Moscow, Deputy Foreign Minister Sergei Ryabkov told RIA Novosti that the Democrats' approach to relations with Russia is 'extremely negative'.