Democrats Win House and Senate. Trump Offers to Work With Them, Then Calls Himself 'Mr. Veto'

President Donald Trump enters the final two years of his term without a congressional majority. Democrats won the House and the Senate on Tuesday, Nov. 3.

Trump congratulated them and said he had spoken with Democratic leaders on election night. He said he is ready to pass policies "appropriate and good for the country." He also posted a picture of a red baseball cap with the word VETO on it.

How big the loss was

Democrats won House seats in districts Trump carried by double digits two years ago, and they prevailed in districts redrawn to favor Republicans. Fox News chief congressional correspondent Chad Pergram wrote that Democrats overcame redistricting in Texas and Florida and won in states such as South Carolina and Kansas. He compared the night to 1994, 2010 and 2018.

Several of Trump's handpicked nominees lost, including Ken Paxton in Texas and Darlene Graham in South Carolina. According to TIME, Trump elevated both over the objections of party leaders who thought other Republicans had a better chance.

Pergram also noted that the newly elected Democrats who flipped Republican turf, not the party's progressives, are what gave Democrats their majority. Democrats, he wrote, won on a message of affordability.

Iran and the price at the pump

Trump himself tied the loss to the war he launched in February. "We actually have the greatest economy," he told Fox News. "But because of the gasoline prices people don't see it as much as they would have without it. And the gasoline was caused by Iran."

Headline inflation has risen to 3.7%. Diesel hit a record in August. The Guardian described the Strait of Hormuz closure as setting off the biggest energy price shock of the modern age, and the IMF expects global headline inflation of 4.7% this year.

Brent crude fell as much as 9% on Wednesday, dropping below $100 a barrel for the first time in a month. It traded around $94, against a prewar level of about $70. The move came amid hopes of a diplomatic breakthrough.

That hope is unproven. CNN reported that U.S. and Iranian negotiators worked unsuccessfully in recent days to strike a new deal, and that Trump has strongly hinted he is prepared to resume the war now that the campaign is over. Trump told Fox News he is still seeking a deal, "otherwise I'll just finish the job."

Senate Minority Leader Chuck Schumer and congressional Democrats are set to press Trump for an immediate end to the conflict, the Epoch Times reported.

Vetoes, investigations and the 'revenge' question

Two-thirds of both chambers is needed to override a veto. Republican strategist Ford O'Connell told the Epoch Times that Democrats will struggle to change policies such as tariffs through legislation.

Democrats say they have other tools. Rep. Robert Garcia of California, expected to chair the House Oversight Committee, posted "Lawyer up" in all caps on election night. Democrats have promised inquiries into alleged corruption and influence peddling, and have already opened probes touching White House staff, the Trump family and Washington renovation projects. Subpoena power arrives in January.

Chapman University presidential studies professor Luke Nichter put the question this way: "Do Democrats want compromise or do they want revenge? Because I think we all know that the investigations in the House are going to start almost right away in January." O'Connell predicted frustrated Democrats will turn to "investigating, prosecuting, and engaging in lawfare."

Democrats frame it differently. Fox News noted that Democrats could argue the vote was a mandate to rebuke the president. Hakeem Jeffries has launched a bid for speaker and laid out a 100-day agenda for the new majority.

One source involved in internal discussions told CNN that Trump's behavior will depend on Democrats. "If you have a Congress that's willing to strike deals, he's a deal-maker," the source said. "If you have a Congress that's going to come in and immediately only focus on investigations — then you're going to get a very different version of Trump."

What Trump can still do alone

Foreign policy is where a lame-duck president keeps the most room. Peter Loge, director of George Washington University's School of Media and Public Affairs, told AFP: "Every time Trump has been backed into a corner, he has shouted more and come out fighting."

At home, the administration has reportedly drawn up a plan to use executive orders to push hardline immigration policies, as Trump did early in his second term. CNN reported that aides have spent months exploring executive authority on immigration and federal spending.

Trump dismissed speculation that he might fire Pentagon chief Pete Hegseth as the Iran war continues. Fresh trilateral talks on Ukraine are set for next week. Brookings Institution fellow Ryan Hass told AFP he doubts Trump wants his legacy to be a warmonger.

The final weeks of the campaign were not about any of that. Trump closed with a 53-minute speech at the Lincoln Memorial Reflecting Pool, where he had overseen a renovation. According to TIME, the new coating peeled and algae turned the water green. He spent much of the speech on construction projects, including the $400 million White House ballroom, which is due to be finished in late 2028.

Markets

Markets initially dropped in early trading in Asia and then rallied as investors weighed up the results, the Guardian reported. Berenberg chief economist Holger Schmieding said voters had "rejected Trump and his somewhat authoritarian penchant for crony capitalism," and called the result evidence that checks and balances work. That is his reading, not a settled fact.

Traders also expect Democrats to take a tougher line on AI regulation and the datacentre rollout, a driver of stock market growth.

The first test is close. Ukraine talks begin next week, and Iran negotiations have so far failed to produce a deal. Whether Trump resumes strikes before the Democratic majority takes office in January is still open.

After that, subpoenas and veto threats will meet each other in Washington.