Donald Trump’s redemption campaign to a second White House term also paved the way for his fellow GOP colleagues, providing a distinctly red tint to the Washington power structure.
As of Wednesday morning, Trump had 277 electoral votes, seven more than needed after Wisconsin broke for the former president around 5:30 a.m. on the east coast.
Republicans reclaimed the Senate, flipping three seats, and in the process, they reshaped it to align more closely with Trump’s political brand. Newcomers like Bernie Moreno, who ousted Ohio Democratic Senator Sherrod Brown, and Tim Sheehy, who defeated four-term Montana Democrat Jon Tester, are younger and more assertive. Additionally, Republican West Virginia Governor Jim Justice triumphed in the race for the Senate seat previously held by Joe Manchin, an independent who occasionally backed Democratic positions.
Next year, the Senate will see a significant shift with new leadership and the absence of long-serving Republicans who have often served as a stabilizing influence. Mitch McConnell will remain in his seat but will step down as leader, while former presidential candidate and Utah Senator Mitt Romney, a moderating force in the Senate, will not seek reelection and will leave the body altogether.
The composition of the House remains up in the air as key races in California and other areas are still undecided. However, conservative figures like Lauren Boebert and Marjorie Taylor Greene, both vocal Trump supporters, easily secured reelection. Known for their provocative rhetoric, they are expected to continue their outspoken attacks on the media and Democrats.
Taking the Senate back means Trump will be able to gain easy confirmation for cabinet posts and also a Supreme Court justice should a vacancy arise. Trump succeeded in changing the court during his first term, winning key victories such as the overturning of abortion rights decision of Roe vs. Wade. Recently, after his presidency, he also secured a ruling that granted him wide immunity from prosecution as president.
The geopolitical environment is likely to undergo some change as Trump has been highly critical of U.S. involvement in Ukraine and has shown disdain for some of the traditional alliances that America has had with Western countries since the end of World War II. He has also supported Israeli Prime Minister Benjamin Netanyahu in his campaign against Hamas and Hezbollah, one that has been widely criticized by human rights groups.
"The Israel-Iran war will escalate under Trump as he resumes enforcement of oil sanctions on Iran while working closely with Israel to issue an ultimatum demanding Iran freeze its nuclear program,” says Matt Gertken, chief U.S. political strategist at BCA Research. “If Trump controls Congress, an historic immigration reform bill will pass that tightens U.S. labor markets. Combined with large new tax cuts, his economic agenda will not only be reflationary but inflationary."
Trump has outlined a bold economic agenda, which includes extending the $1.7 trillion in tax cuts from his first term, imposing massive tariffs on imported goods, and initiating mass deportations of immigrants. While the president has significant power to impose tariffs without congressional approval, tax cuts would require legislative support. However, if Republicans sweep Congress, these proposals are likely to gain traction.
Markets responded positively to Trump’s victory, with Dow Jones Industrial Average futures surging by over 1,300 points in early trading. Stocks in the energy, cryptocurrency, and banking sectors rose due to expectations of reduced regulation and increased industry support. Tesla, owned by Trump supporter Elon Musk, rose 13% in premarket trading, and Bitcoin hit an all-time high of $75,000 per share.
"Now that the election is decided, there will certainly be mixed opinions on the results," said Harrison Seletsky, director of business development at SPACE ID. “A Trump win is a ‘net positive’ for tech and blockchain innovation. He’s already outlined several crypto-friendly policies and shown a commitment to supporting the American crypto industry, paving the way for further development of blockchain infrastructure."
However, not all investors are optimistic. The yield on the 10-year Treasury spiked to 4.44% due to concerns that Republican economic plans could be inflationary and exacerbate the federal government's debt problem.
Trump’s victory reaffirmed his political instincts to remain unapologetically himself, avoiding a centrist approach or tempering his divisive rhetoric. His campaign focused on the economy, immigration, and portraying himself as the solution to a broken country, with particular criticism of the Biden administration. Despite a late exit by President Joe Biden, Trump capitalized on the public's frustration with rising living costs and economic pressures.
By sticking to his unorthodox approach, Trump secured victory for his party. As the oldest man elected president and only the second to achieve two terms with a four-year gap, there’s little reason to believe he will alter his strategy when he assumes office in January.