Trump's Midterm Defeat: What It Means for Europe and Global Markets

Democrats won control of both chambers of the US Congress in the midterm elections, dealing a major defeat to President Donald Trump. The outcome raises questions about tariffs and Ukraine policy, though Trump retains significant unilateral power. Trump's Republicans lost their majority in the House of Representatives and Senate. Democrats gained 25 House seats, reaching 220, and won seven Senate seats including in Texas, Ohio, Kansas, and Maine. About two-thirds of voters said Trump's tariffs harmed the economy. Trump said he accepts the results but will use his veto power to block Democratic legislation. Analysts say tariffs on Europe may continue since they are based on Section 301, which allows presidential action without Congress. Markets reacted calmly, with the euro rising 0.4% and gold up 2%.