Talk about a double whammy. On May 28, 2025, a federal court in New York pulled the plug on President Donald Trump’s big tariff plans, calling them flat-out illegal. Right around the same time, Elon Musk, the Tesla and SpaceX mogul, threw in the towel on his gig running the Department of Government Efficiency (DOGE), a task force aimed at hacking away billions in federal spending. With these two bombshells hitting at once, Congress is now gearing up to pick apart DOGE’s chaotic cuts while grappling with the fallout of Trump’s trade misfire. It’s a wild moment in Washington, and here’s the scoop on what went down, why it’s a big deal, and what’s coming next.
Trump’s Tariff Dream Gets Smacked Down
Trump came out of the gate in his second term swinging hard on trade. His plan? Slap tariffs on just about every country shipping goods to the U.S.—10% across the board, 30% on China, and 25% on Canada and Mexico. He kicked things off on April 2, 2025, calling it “Liberation Day,” and leaned on a 1977 law, the International Emergency Economic Powers Act (IEEPA), to justify it. The pitch was that trade deficits and drug smuggling—like fentanyl from Mexico—were national emergencies, and tariffs would bring back jobs and force better trade deals.
But the U.S. Court of International Trade in New York wasn’t buying it. On May 28, three judges—picked by Reagan, Obama, and even Trump himself—said Trump went too far. The Constitution gives Congress, not the president, the power to mess with trade, and IEEPA doesn’t hand out blank checks for tariffs. The court also shot down the idea that fentanyl smuggling justified tariffs on Canada, Mexico, and China. The ruling killed the 10% universal tariffs, the 30% China tariffs, and the 25% Canada-Mexico tariffs, though it left alone separate levies on cars, steel, and aluminum under a different law.
The White House didn’t take it lying down, filing an appeal with the U.S. Court of Appeals for the Federal Circuit. Trump’s trade guy, Peter Navarro, played it cool, hinting they could pivot to other trade laws like Section 301 or 338. Wall Street threw a party—S&P 500 futures popped 1.4%, and the dollar climbed against the yen and euro. But the vibes are shaky. This could drag on to the Supreme Court, and Trump’s leverage in trade talks with China, the EU, and others just got kneecapped. Businesses and shoppers might dodge higher prices for now, but the trade war’s far from over.
Musk’s DOGE Days: A Short, Crazy Stint
While the tariff drama exploded, Musk dropped his own news, posting on X that he was done with DOGE. Back in January 2025, Trump had tapped him to lead this advisory group—named after Musk’s favorite crypto meme—to slash a mind-boggling $2 trillion from the federal budget. As a “special government employee,” Musk got a pass on some of the usual ethics hoops, which raised hackles right away. With SpaceX raking in NASA and Pentagon contracts and Tesla dodging regulators, folks wondered if Musk could keep his day job and his government gig separate.
Musk went all in, targeting agencies like USAID, the Consumer Financial Protection Bureau, and NOAA. DOGE pushed out about 260,000 federal workers—one in eight of the civilian workforce—through cash buyouts and some arm-twisting. They sent an email offering money to quit and told workers to file weekly reports proving their jobs weren’t pointless, with Musk posting that shirkers might as well hit the road. The Department of Education got clobbered, losing $900 million in research contracts, and USAID was pretty much gutted, with 83% of its programs axed. DOGE even poked around in Treasury and FAA systems, which didn’t sit right, especially since SpaceX had tangled with the FAA before.
The Pushback: Courts, Critics, and Musk’s Breaking Point
DOGE’s rampage didn’t go unchecked. Federal courts slammed the brakes on moves to grab Treasury data and dismantle USAID, saying Musk’s crew was stepping on Congress’s turf. Unions and advocacy groups hauled DOGE to court, arguing its mass firings broke old-school civil service rules. Democrats, led by Senator Elizabeth Warren, called it a “hostile takeover” and tossed around words like “coup” over DOGE’s lack of accountability. Warren threw out her own plan for $2 trillion in cuts—think trimming fat from defense contracts or closing tax loopholes—but it didn’t get far in a Republican-controlled Congress.
Musk bailed after calling out a Republican tax and spending bill on CBS News as “massive” and a betrayal of DOGE’s mission. That jab ticked off White House staffers, and word is Musk’s exit was settled without a direct chat with Trump. Tesla’s 13% sales drop in 2025 and Musk’s $300 million splurge on the 2024 election didn’t help. DOGE claimed $175 billion in savings, but Reuters could only pin down $61.5 billion—way off the $2 trillion mark. For a guy like Musk, who’s used to crushing it, that gap probably felt like a punch to the gut.
Congress Dives In
With tariffs on ice and Musk out, Congress is ready to roll up its sleeves. Republicans like James Comer want to keep DOGE’s efficiency push alive, but Democrats are demanding a hard look at the damage. Think longer lines at veterans’ hospitals, slower Social Security checks, and a workforce missing its best players. Governance pro Donald Moynihan called DOGE’s moves “slash and burn,” more about gutting jobs than fixing government. Lawmakers will grill DOGE on whether Musk’s business ties clouded his calls and if it broke laws by dodging Congress. Musk’s 130-day limit as a special government employee, plus some ethics rules, might also get a second look.
The tariff ruling throws in a curveball. With Trump’s trade plans wobbling, his team might lean harder on DOGE’s cuts to plug budget holes. But cabinet secretaries are itching to take back their turf, which could clip DOGE’s wings. Trump’s got a fallback—limited 15% tariffs under the Trade Act of 1974—but those come with more red tape and Congress in the mix.
Why It’s a Big Deal
This double hit—the tariff smackdown and Musk’s exit—shows the limits of going rogue in Washington. Trump’s tariffs and Musk’s DOGE were all about shaking things up, but courts and politics are hitting back. The tariff ruling says Congress, not the president, runs the trade show. Musk’s stint proves a billionaire can stir the pot but risks breaking it too. As Congress digs into DOGE and the courts wait for Trump’s appeal, it’s all about balancing bold moves with keeping government humming. For now, businesses and workers catch a break, but Trump’s next play—and the Supreme Court’s take—will keep the drama rolling.
Trump’s Tariff Dream Gets Smacked Down
Trump came out of the gate in his second term swinging hard on trade. His plan? Slap tariffs on just about every country shipping goods to the U.S.—10% across the board, 30% on China, and 25% on Canada and Mexico. He kicked things off on April 2, 2025, calling it “Liberation Day,” and leaned on a 1977 law, the International Emergency Economic Powers Act (IEEPA), to justify it. The pitch was that trade deficits and drug smuggling—like fentanyl from Mexico—were national emergencies, and tariffs would bring back jobs and force better trade deals.
But the U.S. Court of International Trade in New York wasn’t buying it. On May 28, three judges—picked by Reagan, Obama, and even Trump himself—said Trump went too far. The Constitution gives Congress, not the president, the power to mess with trade, and IEEPA doesn’t hand out blank checks for tariffs. The court also shot down the idea that fentanyl smuggling justified tariffs on Canada, Mexico, and China. The ruling killed the 10% universal tariffs, the 30% China tariffs, and the 25% Canada-Mexico tariffs, though it left alone separate levies on cars, steel, and aluminum under a different law.
The White House didn’t take it lying down, filing an appeal with the U.S. Court of Appeals for the Federal Circuit. Trump’s trade guy, Peter Navarro, played it cool, hinting they could pivot to other trade laws like Section 301 or 338. Wall Street threw a party—S&P 500 futures popped 1.4%, and the dollar climbed against the yen and euro. But the vibes are shaky. This could drag on to the Supreme Court, and Trump’s leverage in trade talks with China, the EU, and others just got kneecapped. Businesses and shoppers might dodge higher prices for now, but the trade war’s far from over.
Musk’s DOGE Days: A Short, Crazy Stint
While the tariff drama exploded, Musk dropped his own news, posting on X that he was done with DOGE. Back in January 2025, Trump had tapped him to lead this advisory group—named after Musk’s favorite crypto meme—to slash a mind-boggling $2 trillion from the federal budget. As a “special government employee,” Musk got a pass on some of the usual ethics hoops, which raised hackles right away. With SpaceX raking in NASA and Pentagon contracts and Tesla dodging regulators, folks wondered if Musk could keep his day job and his government gig separate.
Musk went all in, targeting agencies like USAID, the Consumer Financial Protection Bureau, and NOAA. DOGE pushed out about 260,000 federal workers—one in eight of the civilian workforce—through cash buyouts and some arm-twisting. They sent an email offering money to quit and told workers to file weekly reports proving their jobs weren’t pointless, with Musk posting that shirkers might as well hit the road. The Department of Education got clobbered, losing $900 million in research contracts, and USAID was pretty much gutted, with 83% of its programs axed. DOGE even poked around in Treasury and FAA systems, which didn’t sit right, especially since SpaceX had tangled with the FAA before.
The Pushback: Courts, Critics, and Musk’s Breaking Point
DOGE’s rampage didn’t go unchecked. Federal courts slammed the brakes on moves to grab Treasury data and dismantle USAID, saying Musk’s crew was stepping on Congress’s turf. Unions and advocacy groups hauled DOGE to court, arguing its mass firings broke old-school civil service rules. Democrats, led by Senator Elizabeth Warren, called it a “hostile takeover” and tossed around words like “coup” over DOGE’s lack of accountability. Warren threw out her own plan for $2 trillion in cuts—think trimming fat from defense contracts or closing tax loopholes—but it didn’t get far in a Republican-controlled Congress.
Musk bailed after calling out a Republican tax and spending bill on CBS News as “massive” and a betrayal of DOGE’s mission. That jab ticked off White House staffers, and word is Musk’s exit was settled without a direct chat with Trump. Tesla’s 13% sales drop in 2025 and Musk’s $300 million splurge on the 2024 election didn’t help. DOGE claimed $175 billion in savings, but Reuters could only pin down $61.5 billion—way off the $2 trillion mark. For a guy like Musk, who’s used to crushing it, that gap probably felt like a punch to the gut.
Congress Dives In
With tariffs on ice and Musk out, Congress is ready to roll up its sleeves. Republicans like James Comer want to keep DOGE’s efficiency push alive, but Democrats are demanding a hard look at the damage. Think longer lines at veterans’ hospitals, slower Social Security checks, and a workforce missing its best players. Governance pro Donald Moynihan called DOGE’s moves “slash and burn,” more about gutting jobs than fixing government. Lawmakers will grill DOGE on whether Musk’s business ties clouded his calls and if it broke laws by dodging Congress. Musk’s 130-day limit as a special government employee, plus some ethics rules, might also get a second look.
The tariff ruling throws in a curveball. With Trump’s trade plans wobbling, his team might lean harder on DOGE’s cuts to plug budget holes. But cabinet secretaries are itching to take back their turf, which could clip DOGE’s wings. Trump’s got a fallback—limited 15% tariffs under the Trade Act of 1974—but those come with more red tape and Congress in the mix.
Why It’s a Big Deal
This double hit—the tariff smackdown and Musk’s exit—shows the limits of going rogue in Washington. Trump’s tariffs and Musk’s DOGE were all about shaking things up, but courts and politics are hitting back. The tariff ruling says Congress, not the president, runs the trade show. Musk’s stint proves a billionaire can stir the pot but risks breaking it too. As Congress digs into DOGE and the courts wait for Trump’s appeal, it’s all about balancing bold moves with keeping government humming. For now, businesses and workers catch a break, but Trump’s next play—and the Supreme Court’s take—will keep the drama rolling.
