Musk versus Trump: A case of mutually assured destruction
Relationship status: It's complicated. The simmering feud between US President Donald Trump and tech titan Elon Musk went public last week, sending Tesla's stock tumbling (before rebounding), calling his government contracts into question and leaving Trump possibly in a more commanding position over the world's richest man.
But really, who knows what to make of this always-odd pairing between two erratic men? Late last Thursday, Musk signalled that he was open to a détente. Reports of a Friday phone call surfaced, which were dismissed by Trump.
Where this goes and how it ends is anyone's guess, but what's clear is that the political friendship that saw two of the world's most powerful men attached at the hip at the beginning of Trump's presidency has now become an unstable mess.
Also Read: X factor: The rise and fall of Elon Musk as a political figure
This, of course, is no way to run a country. The day-long brawl starkly revealed what had always been plainly obvious: This relationship is transactional and has always smelt of corruption, with Musk's $270 million campaign contribution seeming to buy him a powerful foothold in the US government, including billions in contracts and access to data and the inner workings of federal agencies.
It was only last week that Trump gifted Musk with a golden key to the White House, saying his 'service to America has been without comparison in modern history" and commemorating his final day as a special government employee. But that send-off couldn't paper over the increasing cracks in the friendship. Musk had become a political liability to Trump, even as the president became a business liability to the world's richest man.
The union has cost Musk billions, damaging his brand and leading him to suggest he was done with politics. 'I think I've done enough," Musk said in a Bloomberg interview last month when asked about his political spending on Trump and the Republican cause. The billionaire, who operates the Building America's Future PAC, had vowed to spend $100 million on midterm polls, though that's now in doubt.
And in ceding such power to Musk, Trump marred the first 100 days of his presidency with erratic cuts, mistakes and walk-backs that led to infighting among staff and cabinet members who couldn't control Musk. His Department of Government Efficiency (DOGE) was largely a failure, with costs likely outweighing savings, federal spending continuing to rise and the Trump administration now undoing some of DOGE's firings of government workers. In the days after his official tenure wrapped up, Musk then proved just how uncontrollable he was, training his fire on Trump's massive reconciliation bill, calling it an 'abomination."
'In November next year, we fire all politicians who betrayed the American people," Musk threatened on X last Tuesday.
Also Read: Electric debacle: Tesla's troubles started before Musk wore the MAGA cap
But the feud has the potential to be as damaging to both men as their unlikely friendship proved to be. At stake for Trump is the kind of muscle, megaphone and money that only Musk can bring, given his status among the powerful techno-right bros who fuelled Trump's campaign and the Republican party more broadly.
Most of Trump's political alliances have had a sell-by date, but his relationship with Musk has been like no other. For Trump, Musk was a force multiplier, magnifying his stature and bringing other billionaires, tech bros and regular bros along with him.
But in challenging Trump, and particularly by bringing up his alleged connection to the late Jeffrey Epstein [a convicted paedophile who faced charges of running a vast child sex trafficking ring], Musk tests his power over MAGA and puts himself—and his companies—at risk of cancelled contracts and potentially even federal government investigations.
Trump holds tremendous power over Musk's vast wealth. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump wrote on Truth Social. 'I was always surprised that Biden didn't do it!" This was scorched earth, revealing Trump's strong hand and Musk's big weakness.
Also Read: Trump's presidency has only seen federal spending rise so far
Ultimately, MAGA belongs to Trump. As for the massive bill, it will still likely pass in some form, though Musk has now put a spotlight on the worst parts of it—it adds $2.4 trillion to the deficit over the next decade and is hardly MAGA.
Meanwhile, some Democrats have suggested that Musk is a potential free agent and should be courted and brought into their fold. But that would be a mistake. An alliance with Musk is akin to having a tiger by its tail in a very small and crowded tent. There are no good choices and the only certainty is chaos. ©Bloomberg
The author is a politics and policy columnist for Bloomberg Opinion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
7 minutes ago
- India Today
Trump open to extending trade talks' deadline, but says it won't be necessary
US President Donald Trump said he's willing to extend the July 8 deadline for completing trade talks with several countries. However, he believes an extension may not be to reporters before attending Les Misrables at the Kennedy Centre, Trump said, "We're rocking in terms of deals. We're dealing with quite a few countries, and they all want to make a deal with us." He noted that ongoing discussions include trade partners like Japan, South Korea, and the European expressed confidence that most agreements would be in place before the deadline. "I don't think it's a necessity," he said when asked about a possible extension. Trump also shared plans to move forward with trade terms soon. "At a certain point, we're just going to send letters out saying, 'This is the deal. You can take it, or you can leave it,'" he said. "We're not quite ready, but we're close."US OFFICIALS SIGNAL FLEXIBILITY FOR 'GOOD-FAITH' NEGOTIATORSTreasury Secretary Scott Bessent told the House Ways and Means Committee that countries negotiating seriously could see the July 8 deadline pushed back."It is highly likely that those countries -- or trading blocs like the EU -- who are negotiating in good faith, we will roll the date forward," Bessent said. "If someone is not negotiating, then we will not."advertisementThis is the Trump administration's first overt indication that it might prolong trade deadlines for nations involved in serious negotiations. He pointed out that the European Union, which had been slow earlier, is now showing signs of "better faith" in the talks. BLOODBATH IN MARKETS AFTER LIBERATION DAY TARIFFS Trump had announced the 90-day pause in tariffs on April 9. This came a week after he unveiled "Liberation Day" tariffs that targeted nearly all countries across the world. The announcement shook global markets, with the S&P 500 dropping more than 12% in four days -- the worst performance since the COVID-19 started their recovery on April 9 when Trump unexpectedly announced the pause. The recovery continued in early May when the Trump team agreed to dial back the triple-digit tariff rates it had imposed on goods from China. Those events have given rise to what some on Wall Street have parodied as the "TACO" trade - an acronym for Trump Always Chickens move led many on Wall Street to jokingly refer to the situation as the "TACO" trade -- acronym for "Trump Always Chickens Out."
Time of India
9 minutes ago
- Time of India
Israel-Iran war looming? US evacuates non-essential staff from middle-east, UK cautions ships in Gulf
Amid rising tensions with Iran over its nuclear program, the U.S. is reducing its non-essential staff presence in the Middle East, including Baghdad, Bahrain, and Kuwait. This decision reflects concerns about regional unrest, with potential impacts on maritime activities. While diplomatic talks face uncertainty, military readiness and security assessments are being closely monitored. A soldier looks out from an M1A2 Abrams tank ahead of the upcoming U.S. Army 250th anniversary celebration parade in Washington, D.C., U.S., June 11, 2025. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Amid rising tensions between Israel and Iran, the United States is drawing down non-essential personnel from several diplomatic and military sites across the Middle East , citing growing regional State Department on Wednesday ordered the departure of all nonessential staff from the US Embassy in Baghdad, noting ongoing security concerns and a commitment to protecting American lives. While the embassy was already operating with limited personnel, the move marks a further nonessential staff and family members in Bahrain and Kuwait have been authorized to leave at government expense, the department Central Command said Defense Secretary Pete Hegseth has approved the voluntary departure of military dependents across the region as a precautionary step. "CENTCOM is monitoring the developing tension in the Middle East," the statement Donald Trump, speaking at the Kennedy Center on Wednesday, acknowledged the drawdown: 'They are being moved out, because it could be a dangerous place, and we'll see what happens.'The US and Iran appear to be at a diplomatic impasse over Iran's rapidly advancing nuclear program. A sixth round of talks, initially set for this weekend in Oman, is now in doubt, according to two American speaking on the Pod Force One podcast, said he was "getting more and more less confident" about a breakthrough with Iran. 'They seem to be delaying... Something happened to them.'Iran, for its part, pushed back on the mounting pressure. Its UN mission stated, 'Iran is not seeking a nuclear weapon, and US militarism only fuels instability.' Defense Minister Gen Aziz Nasirzadeh warned that Iran is fully prepared to respond to any military conflict.'If conflict is imposed, the opponent's casualties will certainly be more than ours... all [US] bases in host countries are within our reach,' he a parallel move, the United Kingdom issued a maritime alert, warning ships in the Persian Gulf, Gulf of Oman, and Strait of Hormuz about the risk of military escalation. The UK Maritime Trade Operations center urged vessels to exercise a possible censure of Iran is on the agenda at the International Atomic Energy Agency, which could pave the way for the reimposition of UN sanctions under the terms of the 2015 nuclear deal — from which Trump withdrew during his first Erik Kurilla, head of US Central Command, was scheduled to testify before the Senate on Thursday, but the hearing has been postponed without officials, meanwhile, downplayed the significance of the US Embassy drawdown in Baghdad, calling it part of a broader US regional reassessment.'There are no security indicators that warrant evacuation,' Iraq's state-run news agency quoted an unnamed official as saying.
Time of India
9 minutes ago
- Time of India
Federal judge blocks Trump administration from detaining Mahmoud Khalil over pro-Palestinian protests
A U.S. judge stopped the Trump administration from deporting Mahmoud Khalil. Khalil is a Columbia University student and pro-Palestine activist. The administration claimed Khalil threatened U.S. foreign policy. Judge Farbiarz ruled the action likely unconstitutional. He cited First Amendment rights infringement. Khalil's lawyers argued deportation endangered him. The case tests immigrant speech rights. FILE -- Mahmoud Khalil speaks during a press conference at Columbia University, near the campus in New York, April 22, 2024. A federal judge on Wednesday, June 11, 2025, barred the Trump administration from continuing to detain Mahmoud Khalil. (Bing Guan/The New York Times) Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A U.S. federal judge has ruled that the Trump administration cannot continue detaining or deporting Mahmoud Khalil , a Columbia University student and pro-Palestinian activist, on the grounds that his presence allegedly threatens U.S. foreign policy interests. The decision, issued Wednesday by Judge Michael Farbiarz in New Jersey, represents a significant legal setback for the administration's efforts to use a rarely invoked provision of immigration law to target student a legal U.S. resident and green card holder married to an American citizen, was arrested by immigration authorities on March 8 in the lobby of his New York City apartment building and has since been held in a Louisiana detention facility. The government's case relied on a 1952 law that allows the Secretary of State to expel noncitizens whose activities are deemed a threat to U.S. foreign policy. Secretary of State Marco Rubio had asserted Khalil's involvement in pro-Palestinian protests at Columbia University fostered a 'hostile environment for Jewish students' and posed adverse foreign policy Judge Farbiarz found this rationale likely unconstitutional, stating that the administration's actions infringed on Khalil's First Amendment rights and caused 'irreparable harm' to his career, family, and freedom of speech. The judge noted that Khalil's continued detention was not supported by substantial evidence and that similar omissions on green card applications—another basis the administration cited—rarely result in ruling does not take immediate effect; the administration has until 9:30 a.m. Friday to appeal. If no appeal is filed, Khalil will be eligible for release on a nominal $1 bond. Khalil's legal team welcomed the decision, with attorney Baher Azmy calling it a relief that the court recognized the 'grotesque, vindictive retaliation for his constitutionally protected expression in support of Palestine'.This case follows a pattern, as other student activists swept up in the administration's crackdown on pro-Palestinian demonstrations have also challenged their detentions and, in some cases, secured release. The Department of Justice , State, and Homeland Security have not commented on the ruling. Khalil's attorneys have submitted extensive documentation to counter allegations of antisemitism and warn that deportation would expose him to grave danger in Syria or Algeria, where he has roots but faces outcome of this case is seen as a landmark test of immigrants' speech rights in the U.S. and could set precedent for how the government handles similar cases involving political activism and foreign policy.
