President Trump ruled out cutting his tariffs.

Danske Bank analyst Magnus Poulsen said in a note that Democrats winning both chambers reduces the likelihood of U.S. fiscal measures that would expand the deficit. The result also makes Trump’s earlier proposal to pay $5,000 to every U.S. adult infeasible, implying the fiscal policy stance will be effectively locked in for 2027-2028.

I. Economic Issues Become the Republican Party's Achilles' Heel A joint survey by the Associated Press and major television media outlets, covering over 79,000 registered voters, revealed that approximately 90% of voters indicated that the cost of living was a key or significant factor influencing their voting decisions. Inflation and rising food and energy prices have eroded voter trust in Republicans' economic governance, a problem further exacerbated by Trump's tariff policies and the war with Iran. II. Voters Are Effectively Rejecting Trump's Governing Agenda Trump's deep involvement in the midterm elections, including exaggerated statements, inflammatory rhetoric, and inappropriate comments at rallies, alienated him from the real concerns of ordinary citizens. Even on election day morning, he declared that "inflation has been resolved," failing to effectively address public economic anxieties. The election ultimately became a rejection of his leadership and governance performance. III. Democrats Regain Control of Congress, Trump Administration Faces Increased Political Confrontation With the Democrats expected to control both the House and Senate, Trump will face stronger congressional constraints on fiscal, trade, foreign policy, and governance issues. Going forward, the Democrats will need to coordinate their policy agenda internally and decide whether and to what extent to investigate Trump and his political allies. IV. Republican Redistricting Strategy Fails, Several Key Seats Lost Unexpectedly Results in key states like Florida and North Carolina show that redistricting has failed to effectively translate into a Republican seat advantage. Furthermore, in an effort to secure Democratic-controlled seats, Republicans have excessively fragmented their voter base in some districts, creating greater challenges for incumbent members of the party. V. MAGA Voter Coalition Shows Signs of Weakening Support among Hispanic, African American, and white voters without a college education has declined, while independent voters have clearly shifted towards the Democratic Party, putting Trump's political base to the test.