The economy decided: Trump's two moves that cost him the midterms

The Republicans suffered a defeat in the US midterm elections, and the Democrats won a majority in both houses of Congress. The article attributes the loss to two moves by Trump: the tariff war that raised inflation and the war with Iran that led to rising gasoline prices.

The Republicans suffered a defeat in the US midterm elections, and the Democrats won a majority in both houses of Congress. At least seven Senate seats and more than twenty House seats held by Republicans shifted to the Democrats. The article attributes the loss to two key moves by President Trump: the tariff war he launched in April 2025, which according to a study by the Federal Reserve Bank of Dallas added about 0.8 percentage points to core inflation, and the war with Iran that led to a sharp rise in gasoline prices. Trump promised in his 2024 campaign to lower prices, but in reality the cost of living increased. The article also reviews the expected internal struggles in both parties ahead of the 2028 presidential elections.