Trump Faces Two Major Court Defeats in Single Day Over Tariffs and DOGE Grants

President Donald Trump experienced two major legal defeats on Thursday, June 12, 2025, as separate federal courts ruled against his administration’s policies. The rulings addressed two contentious issues: a 10% global tariff and the termination of grants by the Department of Government Efficiency (DOGE).

Federal Court Blocks Trump’s 10% Global Tariff

In a 2–1 decision, the U.S. Court of International Trade ruled that President Trump’s 10% global tariff, announced in February 2025, is unlawful. The court found that the administration misrepresented Section 122 of the Trade Act to justify the tariff.

The majority opinion clarified that the phrase “balance-of-payments deficits” in the law does not equate to a “trade deficit,” as the Trump administration had argued. The court emphasized that Congress explicitly distinguished between these terms in 1974, identifying specific financial metrics as “balance-of-payments deficits.”

“It is clear that Congress was aware of the differences in the words it chose,” the majority opinion stated. “The Government argues that in today’s world, the current account is the proper component for identifying a balance-of-payments deficit.… Problematically for the Government, and as discussed herein, Congress in 1974 identified the settlement, liquidity, and basic balance deficits as ‘balance-of-payments deficits.’”

The tariffs, initially set to expire at the end of July 2025, are now blocked pending further legal action. The administration has not indicated its next steps.

Federal Judge Condemns DOGE’s Anti-Woke Grant Terminations

In a separate ruling, U.S. District Judge Colleen McMahon declared that Elon Musk’s DOGE “blatantly used” race, gender, sexuality, and other protected characteristics to terminate grants and opportunities. The decision is a victory for nonprofit organizations that had either lost funding or faced threats due to DOGE’s cuts.

“Treating Black civil-rights history, Jewish testimony about the Holocaust, the oft-forgotten Asian American experience, the shameful treatment of the children of Native tribes, or the mere mention of a woman as a marker of lack of merit or wastefulness is not lawful,” Judge McMahon wrote.

The ruling underscores the unconstitutionality of DOGE’s discriminatory practices, which targeted programs based on ideological grounds. The decision provides legal protection for affected nonprofits and may set a precedent for future challenges to similar policies.

As of now, President Trump has not publicly addressed either of the court rulings.