American voters handed Democrats both chambers of Congress after a campaign dominated by high prices and the war with Iran. Donald Trump keeps the presidency, but the next two years will be governed by a different set of numbers.

The most revealing result of the US midterms may have come from Kansas. The state elected its first Democratic senator since 1932. Democrats also won Senate races in Texas and South Carolina, states Donald Trump carried comfortably just two years ago. The Associated Press called control of both the House of Representatives and the Senate for the Democrats.

The results show how far the Democrats’ comeback reached. Winning back voters in marginal suburbs was part of the job. Winning Senate races in Republican territory turned a difficult night for Trump into a change of power in Washington.

How the Democrats came back

Trump returned to office in 2025 after promising relief from high prices. Two years later, voters were still judging him against that promise. Reuters reported that nearly nine in ten voters surveyed in exit polling said the cost of living was a major or crucial factor in their vote. The war with Iran and concerns about government corruption added to the pressure on Republicans.

Democrats also found candidates who could make the contest competitive in places where the party had long struggled. In Texas, state representative James Talarico defeated Republican Ken Paxton, ending a statewide losing streak for Democrats that had lasted more than 30 years. Ohio elected Democrat Sherrod Brown in a state Trump had carried three times. Those races mattered because Democrats needed to win beyond their usual territory to take the Senate.

The economic frustration behind the result is familiar to Australians. Inflation can slow while groceries, insurance and other essentials still absorb more of a household’s pay than they did a few years earlier. Voters can hear that the economy is improving and still judge it by how much money they have left at the end of the week.

Was it a socialist revolution?

The evidence points to a broad backlash over living costs, the war and the way Trump has used presidential power. A voter who wants cheaper health insurance, relief from tariffs or tighter oversight of the White House may have little appetite for a wider shift to the left. The size of the swing tells us how widely dissatisfaction spread. The exit polls give a clearer indication of what drove it.

Democrats will face their own test once they have to put specific proposals to a vote. It is easier to build a coalition around the price of groceries than around the taxes, spending or trade measures that might bring prices down. The party now has to decide which promises can hold together the voters it won in places as different as Texas and Maine.

What Trump can still do

When the new Congress takes office in January, Democrats will decide which bills reach the floor and which administration decisions come under investigation. The House can hold hearings and subpoena witnesses and documents. The Senate can hold up or reject nominees who require its approval. Funding deadlines will give both sides leverage, with the risk of a shutdown if they fail to agree.

Trump retains his veto and considerable authority over how his administration carries out existing law. Democratic control of Congress gives the party leverage over legislation and spending, while Trump can still make executive decisions within the powers available to him. That leaves room for deals on individual bills and plenty of scope for standoffs. Trump has said he is prepared to work with Democrats, while reserving the right to veto bills he opposes.

Will Democrats open the border?

The election itself changes neither US immigration law nor who runs federal border operations. Those agencies remain under the Trump administration. The new Democratic majorities can scrutinise detention and deportation practices, negotiate over enforcement funding and propose changes to asylum or immigration law. A bill Trump vetoes would need a two-thirds majority in each chamber to become law.

“Open borders” also bundles together decisions with very different consequences. A fight over detention standards, a proposal to hire more asylum officers and a change to who qualifies to enter the country are distinct policy questions. The first signs of where Democrats want to go will be in their funding proposals and bills.

What it means for Australia and trade

For Canberra, the election adds another centre of power in Washington. Anthony Albanese’s government will still deal with Trump and his administration on tariffs, defence and critical minerals. It will also have to work with Democratic committee leaders who can influence defence spending and scrutinise the industrial commitments behind AUKUS. For the submarine program, the practical questions are whether the United States funds enough shipyard capacity and can deliver on the schedule Australia is counting on.

Trade is where Australian businesses may look for the earliest change. Australia exported about A$60 billion in goods and services to the United States in 2025 under a trading relationship anchored by a free trade agreement in force since 2005. Yet the Department of Foreign Affairs and Trade says Australian goods covered by a US Section 301 measure have faced a 12.5 per cent tariff since July, subject to exemptions. Separate US sectoral tariffs also apply.

House Democrats have signalled they want to introduce legislation aimed at removing tariffs. Whether that brings relief for Australian exporters depends on which measures Congress targets and whether any bill can get past a presidential veto. For an Australian supplier quoting a US customer, the development that counts is a change to the duty on the product at the border. The election has created an opening for that debate. The tariff bill still has to be paid.

The Times View

The midterms gave Democrats the power to set Congress’s agenda. Their first test is whether they can turn the issue that helped elect them, the cost of living, into measures that can get through a divided Washington. The first serious tariff bill will be worth watching in both countries. It will show which costs Democrats are prepared to tackle, which protections they want to keep and where Trump is willing to bargain.