Trump-Musk bromance descends into brawl over contracts, impeachment
WASHINGTON: Donald Trump threatened on Thursday to cut off government contracts to Elon Musk's companies and the world's richest man suggested the US president should be impeached, marking a stark end to an unlikely alliance and leaving onlookers wondering what was next.
The hostilities between the former allies intensified when the president criticised Tesla CEO Musk in the Oval Office and the pair then lobbed verbal barbs at each other on their social media platforms: Trump's Truth Social and Musk's X.
"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump posted.
Tesla shares closed down over 14 per cent on Thursday, losing about $150 billion in market value in the largest single-day decline in value in its history.
Minutes after the closing bell, Musk replied, "Yes," to a post on X saying Trump should be impeached, an unthinkable move in Congress where Trump's Republicans hold majorities in both chambers.
The trouble between the two started brewing days ago, when Musk denounced Trump's sweeping tax-cut and spending bill.
The president initially held his tongue while Musk campaigned to torpedo the bill, saying it would add too much to the nation's $36.2 trillion in debt.
Trump broke his silence on Thursday, telling reporters he was "very disappointed" in Musk.
"Look, Elon and I had a great relationship. I don't know if we will anymore," Trump said.
As Trump spoke, Musk responded in real time on X.
"Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election.
In another post, Musk asserted that Trump's signature tariffs would push the US into a recession later this year.
Musk's businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink.
Musk, whose space business plays a critical role in the US government's space programme, said that as a result of Trump's threats he would begin decommissioning SpaceX's Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station. Late on Thursday, Musk backed off the threat.
And in a sign of a possible detente to come, Musk subsequently wrote: "You're not wrong," in response to billionaire investor Bill Ackman saying Trump and Musk should make peace.
Trump and Musk are both political fighters with a penchant for using social media to attack their perceived enemies and many observers had predicted a falling out.
Musk had become one of Trump's most visible advisers as head of the Department of Government Efficiency, which mounted a sweeping and controversial effort to downsize the federal workforce and slash spending.
After leaving that role, Musk this week targeted what Trump has named his "big, beautiful bill", calling it a "disgusting abomination" that would deepen the federal deficit.
His attacks amplified a rift within the Republican Party that could threaten the bill's prospects in the Senate. Nonpartisan analysts say Trump's bill could add $2.4 trillion to $5 trillion to the nation's $36.2 trillion in debt. A prolonged feud between the pair could make it harder for Republicans to keep control of Congress in next year's midterm elections if it leads to a loss of Musk's campaign spending or erodes support for Trump in Silicon Valley.
"Elon really was a significant portion of the ground game this last cycle," said a Republican strategist with ties to Musk and the Trump administration who spoke to Reuters on condition of anonymity.
"If he sits out the midterms, that worries me."
On Tuesday, Musk posted that "in November next year, we fire all politicians who betrayed the American people." — Reuters
HIGHLIGHTS
The trouble between the two started brewing days ago, when Musk denounced Trump's sweeping tax-cut and spending bill
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
3 hours ago
- Observer
Trump says Xi agreed to let rare earth minerals flow to US
WASHINGTON: US President Donald Trump said on Friday that Chinese President Xi Jinping agreed to let rare earth minerals and magnets flow to the United States, a move that could lower tensions between the world's biggest economies. Asked by a reporter aboard Air Force One whether Xi had agreed to do so, Trump replied: "Yes, he did." The Chinese Embassy in Washington did not immediately respond to a request for comment. Trump's comment came one day after a rare call with Xi aimed at resolving trade tensions that have been brewing over the topic for weeks. At that time, Trump said there had been "a very positive conclusion" to the talks, adding that "there should no longer be any questions respecting the complexity of Rare Earth products." In another sign of easing tensions over the issue, China has granted temporary export licences to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said. The US president's top aides are set to meet their Chinese counterparts in London on Monday for further talks. "We're very far advanced on the China deal," Trump told reporters on Friday. The countries struck an agreement on May 12 in Geneva, Switzerland, to roll back for 90 days most of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. Financial markets that had worried about trade disruptions rallied on the news. But China's decision in April to suspend exports of a wide range of critical minerals and magnets has continued to disrupt supplies needed by automakers, computer chip manufacturers and military contractors around the world. Trump had accused China of violating the Geneva agreement and ordered curbs on chip-design software and other shipments to China. Beijing rejected the claim and threatened counter measures. Rare earths and other critical minerals are a source of leverage for China as Trump could come under domestic political pressure if economic growth sags because companies cannot make mineral-powered products. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. — Reuters
Observer
3 hours ago
- Observer
Trump-Musk showdown threatens US space plans
WASHINGTON: SpaceX's rockets ferry US astronauts to the International Space Station. Its Starlink satellite constellation blankets the globe with broadband, and the company is embedded in some of the Pentagon's most sensitive projects, including tracking hypersonic missiles. So when President Donald Trump threatened to cancel Elon Musk's federal contracts, space watchers snapped to attention. Musk, the world's richest person, shot back that he would mothball Dragon — the capsule NASA relies on for crew flights — before retracting the threat a few hours later. For now, experts say mutual dependence should keep a full-blown rupture at bay, but the episode exposes just how disruptive any break could be. Founded in 2002, SpaceX leapfrogged legacy contractors to become the world's dominant launch provider. Driven by Musk's ambition to make humanity multi-planetary, it is now NASA's sole means of sending astronauts to the ISS — a symbol of post-Cold War cooperation and a testbed for deeper space missions. The company has completed 10 regular crew rotations to the orbiting lab and is contracted for four more, under a deal worth nearly $5 billion. — AFP
Observer
a day ago
- Observer
Trump-Musk bromance descends into brawl over contracts, impeachment
WASHINGTON: Donald Trump threatened on Thursday to cut off government contracts to Elon Musk's companies and the world's richest man suggested the US president should be impeached, marking a stark end to an unlikely alliance and leaving onlookers wondering what was next. The hostilities between the former allies intensified when the president criticised Tesla CEO Musk in the Oval Office and the pair then lobbed verbal barbs at each other on their social media platforms: Trump's Truth Social and Musk's X. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump posted. Tesla shares closed down over 14 per cent on Thursday, losing about $150 billion in market value in the largest single-day decline in value in its history. Minutes after the closing bell, Musk replied, "Yes," to a post on X saying Trump should be impeached, an unthinkable move in Congress where Trump's Republicans hold majorities in both chambers. The trouble between the two started brewing days ago, when Musk denounced Trump's sweeping tax-cut and spending bill. The president initially held his tongue while Musk campaigned to torpedo the bill, saying it would add too much to the nation's $36.2 trillion in debt. Trump broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. "Look, Elon and I had a great relationship. I don't know if we will anymore," Trump said. As Trump spoke, Musk responded in real time on X. "Without me, Trump would have lost the election," wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year's election. In another post, Musk asserted that Trump's signature tariffs would push the US into a recession later this year. Musk's businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink. Musk, whose space business plays a critical role in the US government's space programme, said that as a result of Trump's threats he would begin decommissioning SpaceX's Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station. Late on Thursday, Musk backed off the threat. And in a sign of a possible detente to come, Musk subsequently wrote: "You're not wrong," in response to billionaire investor Bill Ackman saying Trump and Musk should make peace. Trump and Musk are both political fighters with a penchant for using social media to attack their perceived enemies and many observers had predicted a falling out. Musk had become one of Trump's most visible advisers as head of the Department of Government Efficiency, which mounted a sweeping and controversial effort to downsize the federal workforce and slash spending. After leaving that role, Musk this week targeted what Trump has named his "big, beautiful bill", calling it a "disgusting abomination" that would deepen the federal deficit. His attacks amplified a rift within the Republican Party that could threaten the bill's prospects in the Senate. Nonpartisan analysts say Trump's bill could add $2.4 trillion to $5 trillion to the nation's $36.2 trillion in debt. A prolonged feud between the pair could make it harder for Republicans to keep control of Congress in next year's midterm elections if it leads to a loss of Musk's campaign spending or erodes support for Trump in Silicon Valley. "Elon really was a significant portion of the ground game this last cycle," said a Republican strategist with ties to Musk and the Trump administration who spoke to Reuters on condition of anonymity. "If he sits out the midterms, that worries me." On Tuesday, Musk posted that "in November next year, we fire all politicians who betrayed the American people." — Reuters HIGHLIGHTS The trouble between the two started brewing days ago, when Musk denounced Trump's sweeping tax-cut and spending bill
