President Trump has escalated his public dispute with Elon Musk, threatening to cut billions of dollars in federal contracts and subsidies for the billionaire’s companies.
This threat follows Musk’s denouncement of Trump’s signature domestic policy bill as an “abomination,” leading to a rapid and very public breakdown of their previously unlikely alliance.
The animosity, which began as a disagreement over policy, quickly spiraled into personal attacks. Both men traded barbs, debating who deserved more credit for Trump’s election victory, whether Musk should have concealed a black eye, and the future of government contracts and subsidies for Musk’s ventures.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump declared on Truth Social.
He also expressed surprise that President Biden hadn’t taken such action.
Speaking from the Oval Office during a meeting with German Chancellor Friedrich Merz, Trump broke an uncharacteristic silence on the matter, expressing deep disappointment in Musk, who until recently served as a top presidential adviser. “I’m very disappointed in Elon,” Trump stated, adding, “I’ve helped Elon a lot.
“Musk, responding in real-time on his social media platform X, countered Trump’s claims.
“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” he posted, asserting credit for Trump’s victory with an unprecedented level of directness, calling Trump’s reaction “Such ingratitude.
“By Thursday afternoon, the feud had intensified further, with Musk reportedly considering leaving the Republican Party to form a new political entity. Trump, for his part, accused Musk of suffering from “Trump derangement syndrome.”
A Shattered Partnership: This public rupture marks the end of a notable collaboration between the two men. Musk had previously contributed over $250 million to Trump’s 2024 presidential campaign and, following Trump’s victory, was given considerable leeway to reduce the federal workforce. Just last week, Trump had publicly lauded Musk as “one of the greatest business leaders and innovators the world has ever produced,” with Musk promising to remain a “friend and adviser to the president.
“Musk’s Potential Leverage: In a recent X poll, Elon Musk asked his followers if a “new political party” representing “the 80 percent in the middle” was needed. Despite often portraying himself as a centrist, he has engaged with various right-wing leaders globally.
While he had pledged $100 million to groups associated with the Trump political operation, these funds have yet to be delivered. His considerable wealth could now be channeled into this new political endeavor.
