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As Democrats take control of the US Congress, what changes for the rest of the world?

SBS News Australia •
November 05, 2026 • 06:36 PM
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A dramatic election result has delivered a major setback for Donald Trump and raised hopes of a shift in US foreign policy.

As Democrats take control of the US Congress, what changes for the rest of the world?

From January, the United States Congress will change dramatically. Both chambers will shift from Republican to Democratic control , placing new constraints on US President Donald Trump's power for the rest of his term.

Leaders and ordinary people around the world watched the midterm elections closely, after nearly two years of a Trump administration that has upended international relations and sent shockwaves across the planet.

Republicans suffered a historic defeat in the elections, widely interpreted as a rebuke of Trump's agenda. Since returning to the White House, the president has launched a deeply unpopular war with Iran that has driven up fuel prices domestically and abroad, exacerbating cost of living pressures.

He has also overseen sweeping immigration crackdowns, imposed tariffs on international trading partners and scaled back US military aid to Ukraine in its war against Russia.

Democrats have won clear majorities in the House of Representatives and the Senate, giving them the power to block many of Trump's proposed laws and make it harder for him to carry out his agenda. They will also have greater power to investigate and scrutinise his administration's actions.

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Congress also controls federal government spending, giving Democrats influence over how Trump's policies are funded.

With Democrats poised to take over, what could Washington's political shake-up mean for the rest of the world?

Jessica Genauer, associate professor in international relations at the University of New South Wales, told SBS News the world will feel a difference, but likely not a major one until the 2028 presidential elections.

"There's a signalling that the US may come back to be a security ally and a key partner of countries around the world. Probably never in the same way that it was, but we're not going to see this particular period continue for too long," she said.

It's been more than eight months since the US and Israel launched joint strikes on Iran, starting a conflict that still has no end in sight.

The economic consequences have been felt far and wide. In a social media post after the Republican defeat became clear, vice president JD Vance said: "The reason we lost is the war."

However, Democrats may struggle to end the war through Congress, as the president retains broad powers over US foreign policy.

David Smith, associate professor at the United States Studies Centre, said "everyone will be waiting to see" whether Democrats can end the war, noting that the Trump administration has avoided calling it one.

In March, Trump said he preferred the term "military operation" because calling it a war raised questions about congressional approval.

"[Democrats] have said that they'll pass legislation against the war, but the Trump administration doesn't even call it a war," Smith told SBS News.

"So probably the most effective weapon that Democrats would have would be to hold up military funding or even to shut down the government over funding the Iran war."

Senate Democratic leader Chuck Schumer has vowed to end the conflict, suggesting on Wednesday that Congress could block funding for the Pentagon.

"The Founding Fathers had the power of the purse as one of the ways of deterring a president who does war without the consent of the American people," he told reporters.

While Congress controls legislation and government spending, the president has authority to veto bills it passes. Congress can override a veto, but doing so requires a two-thirds majority in both chambers.

While Trump was not on the ballot, the resounding Democratic success has already prompted Republican soul-searching, with many questioning the party's future and the role of Trump's grievance and culture war-focused brand of politics.

Smith says the election illustrates "how sick Americans are of this style of politics", and may show the world its limitations.

"Trump has really, for the last 10 years, been an icon of the global far right, and there have been politicians all over the world, including in Australia, who have really modelled themselves on Trump," he said.

In his social media post analysing the election result, Vance said a pollster had determined four things that could bring voters back to the Republican Party: ending the war, focusing on the cost of living, putting "America first" and changing the US relationship with Israel.

Trump seems aware of that vulnerability. In a surprise announcement on the morning of election day, he said the US would end its annual US$3.8 billion ($5.4 billion) in military aid to Israel, suggesting the aid had become a "bad talking point" for the political left.

"I think it's a sign of how desperate he was feeling towards the midterms," Genauer said.

"That he suddenly threw out this statement, which was clearly trying to appeal to that more MAGA protectionist core support base that he felt he was starting to lose."

Israel, which has received hundreds of billions of dollars in US economic and military assistance since its founding in 1948, held an inconclusive election last week that left Prime Minister Benjamin Netanyahu's future in limbo.

Israeli opposition leader Gadi Eisenkot said the US announcement illustrated why Netanyahu must be replaced, warning it signalled a dangerous shift in the two countries' strategic relationship.

Republicans may also seek to shift the blame for their electoral losses onto Israel, according to Smith.

"If I were the government of Israel, I would be quite worried about that," he said.

European leaders expressed hopes that the new Congress would bring a shift in the US position towards Ukraine as its war with Russia heads towards its fifth year.

Ahead of the vote, Trump repeatedly lashed out at Ukraine while pursuing a more conciliatory approach towards Russia.

With Democrats now controlling Congress, support from some Republicans could create strong bipartisan pressure on Trump to change course on Ukraine.

Genauer doubts Trump will shift his position, but said attempts to pass legislation increasing military aid to Ukraine or imposing sanctions on Russia would still send an "important signal" that the US hasn't given up on Ukraine

"He's likely to veto any kind of legislation, whether it's additional military support for Ukraine or additional sanctions on Russia," she said.

Neither Smith nor Genauer expect the change in Congress to bring immediate, tangible changes to Australia's relationship with the US.

Smith doesn't anticipate a shift in Trump's trade policies, including the tariffs imposed on Australian imports.

But Genauer said Australians may be able to breathe easier, with "less surprises" on the trade and security fronts.

"While I don't think we're necessarily going to see clear tangibles in the next two years, I think there is a sort of a vibe shift, if you will, and that the Australian government will be feeling a lot more positive going forward towards the next US presidential elections."

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