Democratic Congress Could Constrain Trump’s Agenda

Democrats’ capture of both chambers of Congress is expected to constrain President Donald Trump’s domestic agenda, increase investigations and oversight, and put major defense initiatives and funding for the Iran conflict at risk. Democrats plan hearings and symbolic votes challenging Trump’s tariffs, alongside efforts on healthcare subsidies, pharmaceuticals, housing and AI data centers, but Trump retains veto power and Senate rules limit what can become law, making gridlock likely. High energy prices linked to the Iran war have intensified pressure to curb the conflict, although renewed U.S. military action remains a concern and Trump retains broad influence over foreign policy. For India and other trading partners, tariffs, visa restrictions and trade negotiations remain unpredictable, with potential effects on investment, exports, markets and energy costs; European leaders welcomed Republican losses but face similar voter pressures over inflation and energy. The political shift could heighten uncertainty for markets and businesses.