Congressional control is set to change in January, with implications for legislation, oversight and US trade policy.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Nov 4 – Democrats are projected to win control of both chambers of the US Congress, setting up divided government from January while President Donald Trump remains in the White House.
ABC News projected Democratic majorities in the House of Representatives and Senate after Tuesday’s midterm elections. Seven Republican-held Senate seats flipped to the Democrats: Texas, Kansas, Ohio, Maine, Iowa, North Carolina and South Carolina.
The projected gains extended beyond closely contested states. The campaign included debate over household costs, tariffs, healthcare and the Iran war.
For Malaysia and other Southeast Asian exporters, the result raises the prospect of greater congressional pressure over trade policy. It does not itself alter US tariffs or guarantee relief.
Projected Senate results
In Texas, Democrat James Talarico defeated Republican Ken Paxton. Adam Hamilton won in Kansas, while Annie Andrews captured South Carolina’s seat from Republican Darline Graham.
Other Democratic gains included former senator Sherrod Brown in Ohio, Troy Jackson in Maine, Roy Cooper in North Carolina and Josh Turek in Iowa.
Democrats also held important seats. Jon Ossoff won re-election in Georgia, while Abdul El-Sayed defeated Mike Rogers in Michigan and is set to become the first Muslim US senator. Peggy Flanagan won Minnesota’s open seat.
Counting continued in outstanding races on Wednesday. Projections established the direction of control, but final seat totals and certified results remained incomplete.
New Congress convenes in January
The new Congress convenes on 3 January 2027. Until then, the existing Congress remains in office. House Democratic Leader Hakeem Jeffries is expected to seek the speakership and would become the first Black American to hold the post if elected by the chamber.
NBC News reported that Jeffries’ stated priorities include reversing Medicaid cuts, extending Affordable Care Act tax credits, seeking changes to congressional authority over tariffs and opposing the administration’s conduct of the Iran war.
Control of congressional committees would allow Democrats to set oversight priorities and lead investigations into the administration. A Senate majority would also give the party a central role in considering presidential nominations.
The projected majorities would not guarantee passage of the Democrats’ legislative programme. Trump retains his veto, and Senate procedural requirements could make Republican support necessary for many bills. The scope for legislation would depend on negotiations between Congress and the White House.
Markets trade unevenly as results emerge
Early market losses did not develop into a uniform regional sell-off. Updated Associated Press reporting showed mixed Asian trading, with Japan and Taiwan lower while South Korea, Hong Kong and Shanghai advanced. European shares were mostly higher.
Technology stocks remained under pressure from concerns about elevated artificial intelligence valuations and company earnings. The mixed trading offered no clear verdict on the election’s implications for the sector.
The policy outlook also remains constrained by Trump’s veto and the Democrats’ lack of a filibuster-proof Senate majority, limiting the scope for rapid legislative change.
What Malaysia should watch
Writing before the election in Fulcrum, the ISEAS–Yusof Ishak Institute’s commentary platform, visiting senior fellow Stephen Olson argued that a Democratic Congress could press for tariff exemptions as lawmakers respond to voters frustrated by higher prices.
In Olson’s assessment, the administration’s Section 301 investigations would continue regardless of the election, and any relief for Southeast Asian exporters was likely to be limited. He argued that deeper changes in US trade policy would depend on the outcome of the 2028 presidential election.
For Malaysian businesses, the issues to monitor include any proposed tariff exemptions, changes to trade legislation and the administration’s response. The election result changes the balance of power in Washington; its commercial effects will depend on the policies adopted.
- TNS NEWS