Elon Musk leaving Trump administration, capping turbulent tenure
WASHINGTON - Billionaire Tesla CEO Elon Musk is leaving the Trump administration after leading a tumultuous efficiency drive, during which he upended several federal agencies, but ultimately failed to deliver the generational savings he had sought.
His "off-boarding will begin tonight," a White House official told Reuters late Wednesday, confirming Musk's departure from government. Musk earlier on Wednesday took to his social media platform X to thank President Donald Trump as his time as a special government employee with the Department of Government Efficiency draws to an end.
His departure was quick and unceremonious. He did not have a formal conversation with Trump before announcing his exit, according to a source with knowledge of the matter, who added that his departure was decided "at a senior staff level."
While the precise circumstances of his exit were not immediately clear, he leaves a day after criticizing Trump's marquee tax bill, calling it too expensive and a measure that would undermine his work with the U.S. DOGE Service.
Some senior White House officials, including Deputy Chief of Staff Stephen Miller, were particularly irked by those comments, and the White House was forced to call Republican senators to reiterate Trump's support for the package, a source familiar with the matter said.
While Musk remains close to the president, his exit comes after a gradual, but steady slide in standing.
After Trump's inauguration, the billionaire quickly emerged as a powerful force in Trump's orbit: hyper-visible, unapologetically brash and unfettered by traditional norms. At the Conservative Political Action Conference in February, he brandished a red metallic chainsaw to wild cheers. "This is the chainsaw for bureaucracy," he declared.
On the campaign trail, Musk had said DOGE would be able to cut at least $2 trillion in federal spending. He did not hide his animus for the federal workforce, and he predicted that revoking "the COVID-era privilege" of telework would trigger "a wave of voluntary terminations that we welcome."
But some cabinet members who initially embraced Musk's outsider energy grew wary of his tactics, sources said. Over time, they grew more confident pushing back against his job cuts, encouraged by Trump's reminder in early March that staffing decisions rested with department secretaries, not with Musk.
Musk clashed with three of Trump's most senior cabinet members - Secretary of State Marco Rubio, Transportation Secretary Sean Duffy and Treasury Secretary Scott Bessent. He called Trump's trade adviser Peter Navarro a "moron" and "dumber than a sack of bricks." Navarro dismissed the insults, saying, "I've been called worse."
At the same time, Musk began to hint that his time in government would come to a close, while expressing frustration at times that he could not more aggressively cut spending.
In an April 22 Tesla conference call, he signaled he would be significantly scaling back his government work to focus on his businesses.
DOGE GOES ON
Musk's 130-day mandate as a special government employee in the Trump administration was set to expire around May 30. The administration has said DOGE's efforts to restructure and shrink the federal government will continue.
"The DOGE mission will only strengthen over time as it becomes a way of life throughout the government," Musk said.
Trump and DOGE have managed to cut nearly 12%, or 260,000, of the 2.3 million-strong federal civilian workforce largely through threats of firings, buyouts and early retirement offers, a Reuters review of agency departures found.
Musk on Tuesday criticized the price tag of Republicans' tax and budget legislation making its way through Congress.
"I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing," Musk told CBS News.
His political activities have drawn protests and some investors have called for him to leave his work as Trump's adviser and more closely manage Tesla, which has seen falls in sales and its stock price.
Musk, the world's richest person, has defended his role as an unelected official who was granted unprecedented authority by Trump to dismantle parts of the U.S. government.
Having spent nearly $300 million to back Trump's presidential campaign and other Republicans last year, he said earlier this month he would substantially cut his political spending.
"I think I've done enough," Musk said at an economic forum in Qatar.
(Reporting by Nandita Bose, David Shepardson and Kanjyik Ghosh; Editing by Chris Sanders and Stephen Coates)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
35 minutes ago
- Zawya
US goods trade deficit narrows sharply in April as imports plunge
The U.S. trade deficit in goods narrowed sharply in April as the boost from the front-running of imports ahead of tariffs faded. The goods trade gap contracted 46.0% to $87.6 billion last month, the Commerce Department's Census Bureau said on Friday. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. A rush to beat import duties pushed the goods trade deficit to a record high in March. The front-running of imports is probably not over. Higher duties for most countries have been postponed until July, while those for Chinese goods have been delayed until mid-August amid negotiations between President Donald Trump's administration and trade partners. Economists said that could see some businesses trying to bring in more imports given the lack of clarity about what happens after the 90-day pauses. Adding to the uncertainty, a U.S. trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday. A record trade gap accounted for a large part of the 0.2% annualized rate of decline in gross domestic product in the first quarter. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
Zawya
3 hours ago
- Zawya
Wheat and corn higher, soybeans stuck near 3-week low
PARIS/SINGAPORE - Chicago wheat and corn edged higher on Friday as the cereal markets consolidated after losses this week linked to favourable U.S. and global harvest prospects. Soybeans ticked lower to hold near Thursday's three-week low, curbed by expectations of ample supplies along with uncertainty over biofuel demand as the U.S. government considers waivers for oil refiners. A firmer dollar kept grain prices in check as grain markets awaited an update on demand from weekly U.S. export sales figures later on Friday. The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.7% to $5.37-3/4 a bushel by 1015 GMT. Corn added 0.5% to $4.49-1/4 a bushel to steady after a one-week low on Thursday. CBOT soybeans inched down 0.1% at $10.50-1/2 a bushel to consolidate above Thursday's low of $10.40. Agricultural consultancy Sovecon on Thursday raised its forecast for Russia's wheat exports for the 2025-2026 season by 1.1 million metric tons to 40.8 million tons, citing improved weather conditions for the harvest. India is likely to produce a record 117.5 million metric tons of wheat in the year ending June 2025, the farm ministry said, above its March forecast of 115.4 million tons. In the U.S., winter wheat conditions are at a five-year high despite an unexpected decline last week, while regular showers have helped most corn and soybean crops get off to a good start to their growing season. With expectations rising for Brazil's upcoming second corn crop, the corn market found little support in large export sales reported on Thursday by the U.S. Department of Agriculture. "Despite exceptional export sales reported by the USDA —amounting to 205,096 tons for the 2024/25 campaign — market support remains absent," Argus Media analysts said in a note. The soybean market was assessing a Reuters report that the White House is considering a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws. Prices at 1015 GMT Last Change Pct Move CBOT wheat 537.75 3.75 0.70 CBOT corn 449.25 2.25 0.50 CBOT soy 1050.50 -1.25 -0.12 Paris wheat 202.00 0.00 0.00 Paris maize 193.00 2.25 1.18 Paris rapeseed 474.50 2.00 0.42 WTI crude oil 61.35 0.41 0.67 Euro/dlr 1.13 0.00 -0.34 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton
Zawya
3 hours ago
- Zawya
Tax bill contains 'sledgehammer' for Trump to retaliate against foreign digital taxes
U.S. President Donald Trump would have the power to retaliate against countries that impose special digital service taxes on large U.S. technology companies like Amazon and Alphabet, under a provision in the sweeping tax bill that Congress is considering. "If foreign countries want to come in the United States and tax US businesses, then those foreign-based businesses ought to be taxed as well," said Representative Ron Estes, a Kansas Republican who helped craft the provision. Some 17 countries in Europe and others around the world impose or have announced such taxes on U.S. tech products like Meta's Instagram. Germany announced on Thursday it was considering a 10% tax on platforms like Google. The levies have drawn bipartisan ire in Washington. Democrats who oppose much of the tax bill have not spoken out against the retaliatory tax provision, found in Section 899 of the 1,100-page bill. Trump has been pressing foreign countries to lower barriers to U.S. commerce. Under the bill, Congress would empower his administration to impose tax hikes on foreign residents and companies that do business in the U.S. The U.S. Constitution gives Congress, not the president, the power to decide on taxes and spending. The provision could raise $116 billion over the next decade, according to the Joint Committee on Taxation. But some experts warned that an unintended consequence of retaliatory taxes could be less foreign investment in the U.S. "This new Section 899 provision brings a sledgehammer to the idea that the United States will allow itself to be characterized as a tax haven by anyone," said Peter Roskam, former Republican congressman and head of law firm Baker Hostetler's federal policy team. The House of Representatives narrowly passed the bill on May 22, and it now heads to the Senate. Democrats broadly oppose the Republicans' tax and spending bill, which advances many of Trump's top priorities such as an immigration crackdown, extending Trump's 2017 tax cuts and ending some green energy incentives. Section 899 would allow the Treasury Department to label the foreign tech taxes "unfair" and place the country in question on a list of "discriminatory foreign countries." Some other foreign taxes also would be subject to scrutiny. Once on the list, a country's individuals and its companies that operate in the U.S. could face stiffer tax rates that could increase each year, up to 20 percentage points. Joseph Wang, chief investment officer at Monetary Macro, said Section 899 could help Trump reduce trade imbalances because if foreign investment decreases it could depreciate the U.S. dollar. This in turn could spur exports of U.S. products by making them cheaper overseas. Portfolio interest would remain exempt from any tax Trump imposes, but some experts cautioned that taxing foreigners could quell foreign investment in the U.S. "Foreign investors may change their behavior to avoid the taxes in various ways, including potentially by simply investing elsewhere," said Duncan Hardell, an advisor at New York University's Tax Law Center. PUSH BACK TO GLOBAL MINIMUM TAX The new approach follows the 15% minimum global corporate tax deal negotiated by the administration of Democratic former President Joe Biden. Republicans, led by Representative Jason Smith of Missouri, chairman of the House tax committee, opposed that approach, arguing it unfairly benefits Chinese companies. Foreign countries have invoked that global minimum to slap higher taxes on U.S. tech firms, if they concluded that generous U.S. tax credits for research and development pushed their tax burden below that 15% threshold. Trump in February directed his administration to combat foreign digital taxes, but they were not addressed in the trade deal announced in May between the U.S. and the United Kingdom, which imposes a 2% levy on foreign digital services. It was unclear if the Treasury Department would actually use the new authority if it becomes law, or if the mere threat of action would convince other countries to change course. The department did not share its intended strategy when asked.
