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
Time of India
18 minutes ago
- Time of India
The hidden job crisis: 25% of Americans are functionally unemployed and it's worse than it sounds
The unemployment rate in America seems low. However, a new report suggests a different story. The Ludwig Institute says the 'true' unemployment rate is much higher. It includes people working part-time or earning low wages. Black and Hispanic workers are affected more. The institute hopes to provide a clearer picture of the economic situation. This helps policymakers make better decisions. Tired of too many ads? Remove Ads The True Unemployment Rate Might Surprise You How LISEP Measures Who's Really Employed Tired of too many ads? Remove Ads Work full-time (35 or more hours per week) Earn at least $25,000 annually before taxes Why the Official Numbers Doesn't Show the Real Picture Who's hit the hardest? Black workers: 27% functionally unemployed Hispanic workers: 28% White workers: 23% Women overall: more likely to be functionally unemployed than men Why it matters Tired of too many ads? Remove Ads FAQs At first glance, the U.S. job market looks strong, as the unemployment rate remained near a 50-year low in April 2025 at 4.2%, and American employers added 177,000 jobs, even amid the uncertainty of tariffs and trade wars, as per a the 'true' rate of unemployment in the US in April was 24.3%, which rose 0.03% from the previous month, as per the Ludwig Institute for Shared Economic Prosperity (LISEP) data, reported Moneywise. LISEP's True Rate of Unemployment (TRU) includes the data of the unemployed people in the US and also the workers who are employed but still struggling, according to the Chair Gene Ludwig said, 'We are facing a job market where nearly one-in-four workers are functionally unemployed, and current trends show little sign of improvement,' quoted institute's metric, called the True Rate of Unemployment (TRU), redefines what it means to be employed, and unlike the Bureau of Labour Statistics, which counts a person as employed even if they worked as little as one hour in a two-week period, TRU focuses on whether that work is actually sustainable, according to the falling short of that, like part-time workers looking for more hours, those earning poverty-level wages, or people who aren't counted by the BLS because they stopped looking for work are included in the TRU, as per explained that, 'The harsh reality is that far too many Americans are still struggling to make ends meet, and absent an influx of dependable, good-paying jobs, the economic opportunity gap will widen,' as quoted in the official unemployment rate leaves out people who aren't actively job hunting, even if they want work, and in April, that included 5.7 million people, as per Moneywise. TRU includes them along with low-wage workers and the underemployed, offering a more complete view of who's actually making a living, according to the said the rate reported by the BLS is 'not technically false,' but is 'deceiving,' considering the number of Americans in the workforce who are 'employed on poverty-like wages' or 'on a reduced workweek that they do not want,' reported numbers are even more concerning when broken down by race and gender, as per Moneywise report:The institute also revealed that Black Americans have had a higher TRU than white Americans every single month since 1995, as per the says, this method, 'provide policymakers and the public with a more transparent view of the economic situation of all Americans, particularly low- and middle-income households, compared with misleading headline statistics,' quoted said, 'Amid an already uncertain economic outlook, the rise in functional unemployment is a concerning development,' adding, 'This uncertainty comes at a price, and unfortunately, the low- and middle-income wage earners ultimately end up paying the bill," as quoted in the reported by the Ludwig Institute for Shared Economic Prosperity (LISEP), which aims to show the full picture of employment in the exactly, because it's just limited. LISEP says it's 'not technically false,' but it doesn't tell the full story.
Time of India
19 minutes ago
- Time of India
Musk-Miller patch up? Elon Musk follows Stephen Miller on X, Katie Miller stands by her husband
Elon Musk silently followed back Stephen Miller on X signaling rebuilding the bridges that he burned. After Elon Musk deleted the slanderous post against President Donald Trump, alleging that Trump is named in the Epstein files, Musk made some other silent peace offerings. Musk promoted Donald Trump's Truth Social post on the Los Angeles riots, and then he silently followed Stephen Miller back. Stephen Miller is the deputy chief of staff in the White House. His wife Katie Miller was the DOGE spokesperson when DOGE was working out of the White House. Now Katie Miller works full time for Elon Musk, which puts the husband-wife duo in a sticky position as they work for rivaling bosses. There were rumors that Katie Miller left her husband for Elon Musk and that before the breakup up the three were very close -- like a throuple -- with the Millers accompanying Elon Musk everywhere in Washington. The three spent time together outside the White House, reports said. — BigTechAlert (@BigTechAlert) Without naming Elon Musk, Stephen Miller continued his criticism of those who are against the Big Beautiful Bill -- Elon being one of them. During the clash, Elon Musk unfollowed Stephen Miller. As part of Musk's silent rapprochement, it emerged Monday that the Tesla CEO has followed back Miller. Stephen Miller, meanwhile, came under a stinging attack from ABC News's senior national correspondent Terry Moran who called Stephen Miller a "world-class hater." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo He wrote Miller is one of the people who conceptualizes the impulses of the Trumpist movement and translates them into policy,' and operates not on 'brains' but on 'bile.' 'Miller is a man who is richly endowed with the capacity for hatred,' Moran wrote. 'He's a world-class hater. You can see this just by looking at him because you can see that his hatreds are his spiritual nourishment. He eats his hate.' ABC News had to issue a statement informing that Terry Moran had been suspended and that his view did not reflect the views of ABC News. Katie Miller stood by her husband and demanded action against Moran -- putting divorce rumors to rest.
The Hindu
20 minutes ago
- The Hindu
U.S., China begin key trade talks in London
China and the United States began a new round of trade talks in London on Monday (June 9, 2025), Beijing's state media reported, as the world's two biggest economies seek to shore up a shaky truce after bruising tit-for-tat tariffs. The two sides are meeting in the historic Lancaster House, run by the U.K. Foreign Office, following a first round of talks in Geneva last month. Chinese Vice Premier He Lifeng was again heading the team in London. Chinese state news agency Xinhua reported the start of the talks. Also read | Trump calls China's Xi tough, 'hard to make a deal with' Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the U.S. delegation, President Donald Trump said Friday. "The meeting should go very well," Mr. Trump said on his Truth Social platform. His press secretary, Karoline Leavitt, told Fox News on Sunday: "We want China and the United States to continue moving forward with the agreement that was struck in Geneva." While the U.K. government reiterated that it was not involved in the discussions, a spokesperson said: "We are a nation that champions free trade." U.K. authorities "have always been clear that a trade war is in nobody's interests, so we welcome these talks", the spokesperson added. Rare earths The talks in London come just a few days after Mr. Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House. Mr. Trump said Thursday's call reached a "very positive conclusion". Mr. Xi was quoted by Xinhua as saying "correcting the course of the big ship of Sino-U.S. relations requires us to steer well and set the direction". Tensions between the two nations have soared, with Mr. Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May. "We need China to comply with their side of the deal. And so that's what the trade team will be discussing tomorrow," Ms. Leavitt said Sunday. A key issue will be Beijing's shipments of rare earths — crucial to a range of goods including electric vehicle batteries and which have been a bone of contention for some time. "Rare earth shipments from China to the US have slowed since President Trump's 'Liberation Day' tariffs in April," said Kathleen Brooks, research director at trading group XTB. "The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers," she added. In April, Trump introduced sweeping worldwide tariffs that targeted China most heavily. At one point, Washington hit Beijing with additional levies of 145 percent on its goods, prompting China to respond with tariffs reaching 125% on US goods. After two days of talks in Switzerland, both sides agreed to slash the eye-watering tariffs for 90 days, but key differences remain -- especially over China's rare earth export restrictions. The impact was reflected in the latest official export data released Monday in Beijing. Exports to the United States fell 12.7%in May from the previous month, with China shipping $28.8 billion worth of goods. This was down from $33 billion in April, according to Beijing's General Administration of Customs. 'Green channel' Throughout its talks with Washington, China has also launched discussions with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump's tariffs. On Thursday, Beijing and Canada agreed to regularise their channels of communication after strained ties. Beijing has also proposed establishing a "green channel" to ease exports of rare earths to the European Union, and fast-tracking approval of some export licenses. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties. According to a spokesperson for Starmer, Britain's finance minister Rachel Reeves took advantage of the talks in London to meet with her US counterpart Scott Bessent and Chinese Vice Premier He Lifeng on Sunday.
