White House arranges ‘peace talks' call after Trump and Elon's feud went nuclear with Epstein barb & impeachment threat
DONALD Trump and Elon Musk's bitter public feud is set for another twist today with the pair reportedly sitting down for peace talks.
The White House is believed to have been scrambling to arrange a phone call between the most powerful man in America and the world's richest person.
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The White House has reportedly managed to arrange a phone call between Donald Trump and Elon Musk later today to solve their bitter feud
Credit: AP
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Musk spent hours posting dozens of remarks towards Trump, his presidency and the 'Big Beautiful Bill' on Thursday
Credit: Reuters
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The Tesla boss made unfounded allegations about Trump's relationship with Jeffrey Epstein on Thursday
Credit: X
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Trump fired back with a trio of Truth Social posts
Credit: Truth Social
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Those in Washington have been trying to end the nuclear feud before it turns any worse after
White House aides have now managed to schedule a call today with the billionaire CEO and Trump to try and broker peace, according to
The two powerful men had been close allies for the best part of a year since
They were almost inseparable for months after Trump's seismic victory at the polls in November.
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But their impending break up came over the weekend when
But ever since, their relationship has taken a steep and sour turn.
The Tesla chief has been highly critical of the president's "Big Beautiful Bill" on several occasions online.
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He even labelled it a "massive, outrageous, pork-filled Congressional spending bill".
Trump soon responded and sparked a very public fallout between the pair which came to blows on Thursday.
Elon Musk's craziest moments, as Tesla CEO leaves White House after 130 days of drama: from chainsaw to double hats and billionaire has ALREADY turned on Trump
The worst of the lot came from Musk who
called for the president's impeachment and made unfounded allegations about Trump's relationship with
Jeffrey Epstein
.
Musk claimed that Trump is
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Despite the remark there is no evidence that Trump had any involvement in convicted
sex
offender Epstein's crimes.
Trump hit back on Truth Social saying Elon was "wearing thin" and that the president had to ask him to leave the White House.
He went on to say that the US government could end all federal contracts with Musk's companies if the insults continued to fly.
Trump described the possible move as a money saving measure.
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Musk even said the 2024 US election, which Trump won by a landslide, was thanks to his support.
The debate quickly dragged in other pivotal US figures with White House press secretary Karoline Leavitt saying Musk was having an "unfortunate episode".
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Musk also claimed to be the reason why Trump won the 2024 election
Credit: X
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Rumours of a potential feud have been around for months after cracks started to show in the pair's relationship
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The bitter feud started when Musk publicly criticised the 'Big Beautiful Bill' put forward by Trump
Credit: X
The SpaceX boss spent hours on his X platform addressing the heated situation overnight.
Despite going on the commenting spree targeting the governmental bill and Trump's presidency, Musk did appear to be open to a reconciling.
American billionaire hedge fund manager Bill Ackman sent out a message urging both men to make up for the good of the US.
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He personally tweeted at Musk and Trump saying: "We are much stronger together than apart."
Musk replied to the message by saying: "You're not wrong."
Trump is yet to publicly speak on if he believes there is a way back for the pair.
But he did tell Politico in a phone call that everything is "going very well, never done better'.
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How did Musk and Trump's relationship capitulate?
ELON Musk and Donald Trump spent Thursday trading barbs over social media.
The Tesla owner called for Trump's impeachment as the president hit back and said the government could end all federal contracts with Musk's companies. Here's how it went down:
On Tuesday, Musk tweeted that Trump's signature spending "big beautiful" spending bill was a "disgusting abomination" that would add billions to the federal deficit
On Thursday in the Oval Office, Trump addressed Musk's criticism of the bill by accusing Musk of trying to kill it because the bill ends federal subsidies for electric vehicles, which would cost Musk's company Tesla significant profits
Musk responded by live-posting on X as Trump spoke, initially shrugging off the president's assessment with an unbothered "Whatever," before tearing into the bill's other spending provisions
Trump escalated the feud after the Oval Office meeting with multiple posts on Truth Social, saying he told Musk to leave the White House instead of continuing to work with Doge and threatening to dump Musk's federal contracts, which are worth billions
Musk fired back on X by saying he was "decommissioning" the Dragon spacecraft made by SpaceX that brought the stranded Nasa astronauts back from the International Space Station in March
Musk also escalated the war of words by reposting and replying "Yes" to a tweet claiming that Trump should be impeached and replaced by Vice President JD Vance
Musk further fanned the flames by claiming that Trump is named in the infamous "Epstein files" and making unfounded accusations that its the reason they haven't been released to the public.
He added that despite Musk's popularity with voters, the president's favorability ratings have continued to go "through the roof".
Trump is currently embroiled in several emergency peace talks across the globe.
He has been urgently looking to end the war in Ukraine since entering office in January by keeping both Volodymyr Zelensky and Vladimir Putin on side.
The president also held a
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Trump described it as a "very good" conversation and said he has been invited to Beijing in the coming months.
It comes amid weeks of escalating trade tensions after Trump announced especially bruising tariffs on China.
How Elon made his billions...
ONLY a few individuals in the world stand a chance at becoming the world's first trillionaire - and Elon Musk is near the top of that list.
Since the start of his career, Musk has been able to amass an extensive fortune and kept a hold of the "world's richest man" moniker for years.
His career in the business world dates back to 1995, when he and his brother,
Four years later, in February 1999, Compaq acquired the company for $307 million in cash, giving Musk $22 million for his seven percent share from the sale.
Later in 1999, he then co-founded X.com, one of the world's first online banks, which merged with
A notorious workaholic, he doesn't spend his money on lavish vacations or expensive hobbies.
Instead, the entrepreneur spends most of his free time at the office or in factories.
Nowadays, most of his wealth continues to tick over thanks to his multiple business ventures including founding giant companies like
Musk's worth also comes from the
At the beginning of 2021, Musk made the price of
In 2022, Musk hit headlines once more when he made an audacious paid for
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Trump gave Musk a touching send off over the weekend when he left the White House and stepped away from DOGE
Credit: Reuters
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Trump became close with Musk last year with the pair seen together in November ahead of a SpaceX launch in Texas
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There were many tensions in the relationship between Elon Musk and Donald Trump. Some had been clearly visible; others were well concealed. Their relationship was widely considered the most consequential in current US politics. The proximate cause of its end was the bill that will probably be Donald Trump's most consequential piece of legislation. The one big beautiful bill has caused one big beautiful bust-up. The United States has a budget problem, and a big one. Simply put, the US government spends more than it takes in taxes and uses borrowings to cover the gap. The borrowings have mounted up over the decades and now stand just north of $36 trillion. Elon Musk was touted (mostly by himself) as the man who was going to fix it. During the election campaign last year it was Musk who first raised the idea of a "Department of Government Efficiency" (DOGE) in a podcast he did with candidate Trump in the middle of August. Musk said he would be willing to serve in the administration, leading DOGE. Because he was - and remains - very worried about the Federal debt and is convinced of the urgent need to reduce it. The DOGE plan was to use the techniques of Silicon Valley start-ups on the fusty world of government accounting and slash and burn its way quickly to big savings that would help to close out the tax and spend gap. Cutting the deficit was the strategic goal, and Trump campaigned on the idea. As long as lenders - foreign and domestic - are happy to lend money to the US government for an interest rate it can afford, and the economy is growing fast enough, borrowing to make up a shortfall for a few years shouldn't be a problem. And the US market for government bonds is the world's deepest and most liquid, so lenders don't look for high interest rates because they can get their money out any time they want, and make a reasonable return lending to Uncle Sam. Right up until the moment they don't - and then $36 trillion becomes a very big problem. We have seen this up close and personal in Ireland during the financial crisis. And although the US is a long way from Ireland's financial woes, when interest rates start to rise (the famous 'yield' on government bonds goes up) governments get worried. This is exactly what happened in the US recently over the president's tariff policy. Such was the disruption to trade and commerce, investors rethought their strategy and demanded higher interest rates for lending money to the government. The so called "bond market vigilantes" didn't like the Trump tariffs, and put pressure on the government in ways ordinary voters cannot. They did for former UK prime minister Liz Truss three years ago, and wreaked havoc among the PIIGS 15 years ago (Portugal, Ireland, Italy, Greece and Spain - all doing a lot better than the Euro area average these days, thank you for asking). So Trump already has the vigilantes on his back over trade. But he promised the voters tariffs, and said the money raised from them would help balance the government books. Trump slammed Biden for his deficit spending (6.5% of GDP last year - the Maastricht Treaty limit in Europe is 3%, and an "excessive deficit" ruling requires governments to set up a plan to get the deficit back in range - ideally balanced over a number of years). In America they have a debt limit - an effort by Congress to rein in the constant deficit spending. Every so often - these days with increasing frequency - the Congress has to raise the debt limit, so the government can borrow more to fund day-to-day activities. If not, the government starts to shut down. This has actually happened in the past. There have been three last minute raises in the debt limit in the past year, as the anti-borrowing members of Congress engaged in brinkmanship to try and bring a runaway budget under control. Enter the man with a chainsaw and baseball cap. I watched from the back of the hall in a convention centre hotel in National Harbour, Maryland, as Musk took to the stage at the C-PAC annual DC gathering of Conservative political activists. The chainsaw was a gift from Argentina's President Javier Milei, who presented it to him on stage. During that August podcast with Trump, Musk cited Milei as an example the US should follow, as did Trump himself - "the new head of a place called Argentina, he's a big MAGA fan: he ran on MAGA and he took it to extremes, and I hear he's doing really a terrific really cut and I'm hearing they are starting to do really well". Musk concurred, saying Milei was cutting government spending, simplifying regulations and doing things "that make sense". He said Argentina was a lesson for the US in what can go bad - a country that used to be very wealthy but which had gone way off course by poor policy choices. Musk tried earnestly to tell Trump his belief that government over-spending causes inflation, that "if the government spends far more than it brings in, that increases the money supply, and if the money supply increases faster than the rate of goods and services - that's inflation", he told a clearly bored Trump, who started talking about how he had rebuilt the US military in his first term in office, before getting the message at the third time of asking: "I think it would be great to just have a government efficiency commission that takes a look at these things and just ensures that the taxpayers' money is spent in a good way. And I'd be happy to help out on such a commission," said Elon Musk. "I'd love it", said Donald Trump, finally. "You're the greatest cutter", he said laying on the praise for Musk's record in business. "You walk into a company, they want to go on strike, you say that's OK - you're all gone. You're all gone. So every one of you is gone. So you are the greatest." It was the beginning of the bromance, as Musk invested his hopes in the candidate, and Trump strapped on the booster rocket of Elon's fame and prestige. That, and the hundreds of millions of dollars Musk threw at the Trump election campaign, including paying voters to register to vote, with the chance of winning a million-dollar jackpot in battleground states like Pennsylvania and Wisconsin. And there was the undeniable star power of Musk himself - tech zillionaire, car maker, rocketship maker, owner of a social media platform, paymaster to Neuralink (a genuinely useful company) and Starlink, the satellite internet company. Truly Musk was and remains a rockstar of the digital age. He brought new, hard to reach voters into the Trump rallies and their more important TV audiences, adding even more energy to the already high-wattage Trump himself brought to bear. He was particularly important in cementing the coalition of 'tech and crypto bros', and the 'manosphere' of podcasters that brought a significant lump of younger male voters over to Trump. In a tight election, it made a difference - possibly the difference. He had the mission, he had the means, he had a sort of a mandate from the voters, and most of all he had permission from Trump - permission to try and cut government spending, abolish departments, fire civil servants - engage in all the fast, simple, direct action many of the MAGA faithful wanted to see: if it inflicted pain on the hated Washington DC and its Deep State denizens, even better. So Musk moved fast and broke things and predictably ran into trouble with the actual cabinet members - the ones who actually are in charge of government departments, the ones who actually had to appear before Congress and do hearings to see if they were suitable for the job and would adhere to the constitution and all that. The first report of a screaming match at a cabinet gathering was not long in coming. More followed as February progressed. Still the cult of Elon Musk grew in the outside world, even as the reality of DOGE was slowly revealed as it attempted to smash the granite edifice of the federal government and its two and a half centuries of political deal-making and legal fortifications. A revolution was afoot in Washington, I wrote in early February, in a piece casting Musk as the Robespierre of this revolt. It was a not so subtle nod to the widely held view in DC that Musk would not last long in government, that his way of cutting just wasn't sustainable. Nor would it result in enough savings. It would just annoy people. And so it did, not just cabinet secretaries, but more importantly, Trump himself. "Elon was wearing thin", he posted on his social media platform Truth Social on Thursday. "I asked him to leave, I took away his EV (electric vehicle) Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!" He followed it up with another post, touching on the big conflict of interest that always dogged Musk's government work: "The easiest way to save in our budget, Billions and Billions of Dollars, is to terminate Elon's governmental Subsidies and Contracts. I was always surprised Biden didn't do it." In his meeting with the German Chancellor Friedrich Merz (who skillfully said almost nothing, apart from a well aimed dart on Ukraine), Trump rose to a reporter's bait and spoke out against Musk over his attack on the One Big Beautiful Bill: "I'm very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people. "He knew everything about it. He had no problem with it. All of a sudden he had a problem, and he only developed the problem when he found out that we're going to have to cut the EV mandate, because that's billions and billions of dollars, and it really is unfair. "We want to have cars of all types, electric. We want to have electric, but we want to have a gasoline combustion. We want to have hybrids. We want to be able to sell everything. "And when that was cut, and Congress wanted to cut it, he became a little bit different, and I can understand that, but he knew every aspect of this bill. He knew it better than almost anybody, and he never had a problem until right after he left. "And if you saw the statements he made about me, which I'm sure you can get very easily, it's very fresh on tape, he said the most beautiful things about me, and he hasn't said bad about me personally, but I'm sure that'll be next. But I'm very disappointed in Elon. I've helped Elon a lot." Asked by a reporter in the Oval Office if Musk had raised his concerns about the tax and spend bill privately, and if Trump's own comments were just sour grapes, the President replied: "No, he worked hard and he did a good job, and I'll be honest, I think he misses the place. I think he got out there and all of a sudden he wasn't in this beautiful Oval Office, and he's got nice offices too - but there's something about this, it's just a special place. "World War One, it started and it ended here, and World War Two and so many other things. Everything big comes right from this, this beautiful space. It's now much more beautiful than it was six months ago. A lot of good things are happening in this room. "And I'll tell you, he's not the first: people leave my administration, and they love us. And then at some point they miss it so badly, and some of them embrace it, and some of them actually become hostile. I don't know what it is. It's sort of Trump derangement syndrome, I guess they call it, but we have it with others too. "They leave, and they wake up in the morning, and the glamour is gone. The whole world is different, and they become hostile. I don't know what it is. Someday you'll write a book about it, and you'll let us know." Musk's responses to his monstering on live TV - about 80 posts on his X social media platform in which he exhibited the full range of political skills of the average moody 16-year-old - veered from threatening to immediately decommission SpaceX's fleet of Dragon spaceships, used by NASA to ferry supplies and astronauts to the International Space Station, to claiming that the reason the Trump administration hasn't fulfilled its promise to publish the Epstein files is that Trump features in them. It is a matter of public record - i.e. newspaper articles, videos, photographs - that Donald Trump and Jeffrey Epstein knew each other and attended social events together, including parties at Epstein's Manhattan mansion. These were mostly in the 1980s and 90s, when Trump would attend the opening of an envelope if it would get him a mention in the New York Post. They are not the smoking gun Mr Musk thinks they are. They are barely the smoke. The row that had been coming for months was now on full public display. The gloves were off, and what used to be called a Twitter fight was under way, the richest man in the world and the president of the United States behaving in an undignified manner for the entertainment of the masses. Rarely has the popcorn emoji on mobile phones been so thoroughly overused. But Trump is the winner here. Musk is simply the latest meal for the apex predator of American politics. Like the nature films where the young buck tries to take on the old alpha and is seen off, so Musk is away with his tail between his legs. His excursion into the swamp of DC politics ended in pain, humiliation and considerable financial loss. The share price of Tesla, Musk's main source of wealth, are down 30% since the start of the year, as enough consumers reacted with a boycott of the electric carmakers products that it caused a crisis at the company that required his full-time attention to fix. And his full-time keeping quiet on the national political stage. His personal loss of fortune since joining the Trump administration was estimated at $27bn dollars. The Irish banking crisis cost €31bn. Once Tesla reported its first quarter results, the clock was ticking very fast for Elon Musk's tenure in the US government. That's when it became generally known that he was on a 130-day contract that would finish at the end of May. Then he was said to be in wind-down mode, withdrawing from government having established the core DOGE team (featuring a precocious 19-year-old known as "big balls"). Both sides tried to handle the departure with grace and formality. But then once he had his US equivalent of a P45 in his hand, Musk launched a blistering attack on Trump's One Big Beautiful Bill (OBBB), calling it "disgusting" and "pork-filled" earlier this week. "I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it," Musk wrote on X on Tuesday night. Was the whole DOGE thing just a distraction, something to create the kind of instability that Trump thrives in so that he could get his real priorities through the system - a system he knew far more about than Musk? Was Musk just used by Trump? Will Musk seek revenge by funding primary challengers to vulnerable Republicans in next year's mid-term elections? California Democrat Ro Khanna says the party should embrace Elon Musk. Musk himself is now musing on starting a third party "that actually represents the 80% of Americans in the middle". Will any of this come to pass? Who knows. All that is sure is that the OBBB is still facing the fundamental arithmetic problem we started off with. The bill as it stands would make the tax cuts that Trump introduced in 2017 permanent. They are currently due to expire next year. Trump likes to call them the biggest tax cut ever: if they do expire, Americans will accordingly face the biggest tax hike ever. Obviously no sitting politicians wants that on their record. So Trump must have those tax cuts made permanent. And that will cost money. Which this bill does not prove for. According to the Congressional Budget Office, the bill as approved by the House of Representatives and now before the Senate contains $3.7bn in tax cuts. Offsetting this is $1.3 trillion in proposed spending cuts. That leaves a $2.4 trillion dollar hole in the accounts, to be filled by more borrowing. Trump disputes the CBO figures, saying they don't take sufficient account of the economic growth he says will come from extending the tax cuts and the investment flowing from his 'America First' trade and tariff policy. There will also be some additional revenue from tariffs, he argues - but nowhere near enough to close the gap. But $2.4 trillion is a lot of hope value. Musk said at the outset he hoped to cut a trillion off government spending through DOGE. The current estimates say DOGE has at best achieved about a fifth of that, probably less. And now Elon is gone. Maybe "Big Balls" and his chums can do it - but again there is a lot of hope value in the proposition. Meanwhile the bond market vigilantes are poised, and the balanced budget fundamentalists in the Senate are talking up a last stand. There are two of them - Rand Paul and Ron Johnson. Trump could lose these two and still carry the day in the Senate, where the Republicans have a 53-47 majority. Four other Republican senators talk a good game on the Federal debt, but are swayable, and will probably be swayed by Trump - especially now he has dispatched the richest man in the world with brutality and cunning. In this he was aided by Steve Bannon, the godfather of MAGA, who despises Musk and the entire Silicon Valley set, regarding them as tech plutocrats intent on robbing Americans of their money and their liberty - especially the latter. He has also called for an investigation into Musk's immigration status, dubbing him an illegal immigrant from Africa. And he urged Trump to seize control of Starlink. Musk called Bannon "a Communist retard". MAGA probably won't miss Musk. But don't rule out a reconciliation, especially if it suits Trump. Plenty of Trump supporters have been calling for a healing of the rift. Former Russian President Dimitry Medvedev jokingly offered Russian mediation to end the hostilities between Trump and Musk - for a fee. In the meantime, all of Trump's domestic energy will be focused on getting the OBBB across the line in the Senate. He wants it ready to sign by 4 July, of course.
