Trump–Musk Rift Widens As Tesla CEO Warns 'Tariffs Could Trigger Recession In US'
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For months, speculation lingered over how long the alliance between the world's richest man and the US president could last.
The escalating feud between Elon Musk and Donald Trump took a sharper economic turn on Thursday, as the Tesla CEO publicly warned that the former president's proposed tariff policy could plunge the United States into a recession by late 2025.
In a post on X, Musk declared, 'The Trump tariffs will cause a recession in the second half of this year," marking a stark departure from his earlier alignment with Trump's political agenda.
The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE — Elon Musk (@elonmusk) June 5, 2025
The statement adds fuel to an already volatile fallout between two of the most influential figures in business and politics, as their once-collaborative relationship continues to unravel in full public view.
The political alliance between Donald Trump and Elon Musk collapsed on Thursday, ending in a highly public and combative fallout. The US President threatened to revoke the billionaire's lucrative government contracts after Musk criticized his flagship spending bill.
In a televised address from the Oval Office, Trump said he was 'very disappointed" in Musk, referring to him as a former aide and top donor who had turned against his 'big, beautiful" budget proposal currently before Congress.
The dispute quickly spilled onto social media, where both men traded insults. Musk escalated the feud further by posting — without providing evidence — that Trump was named in government files related to convicted sex offender Jeffrey Epstein.
The clash could have significant political and economic consequences. Tesla's stock tumbled, and Musk threatened to terminate a vital US space program involving the Dragon spacecraft, signaling the potential unraveling of a major public-private partnership.
For months, speculation lingered over how long the alliance between the world's richest man and the US president could last. Still, the speed and intensity of the rupture surprised many in Washington.
'I'm very disappointed in Elon. I've helped Elon a lot," Trump told reporters in the Oval Office, as visiting German Chancellor Friedrich Merz looked on in silence.
'Elon and I had a great relationship. I don't know if we will anymore."
The 78-year-old president, sounding wounded, reminded reporters that only a week earlier, he had hosted a grand farewell for Musk as he departed the government's cost-cutting Department of Government Efficiency (DOGE).
Trump later labeled Musk 'crazy" and claimed he had asked him to step away from the role because he was 'wearing thin."
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