Latest news with #governmentcontracts
CNA
5 hours ago
- Business
- CNA
Commentary: Trump and Musk are fighting. It's difficult to pick a side
SINGAPORE: Once inseparable, United States President Donald Trump and the world's richest man, Elon Musk, are now locked in a very public - and very bitter - divorce. In a matter of days, Mr Musk torched Mr Trump's signature "big, beautiful" Bill, condemned his spending plans, threatened to form a new political party and even suggested the president be impeached. Mr Trump retaliated in kind. He called Mr Musk 'a big-time drug addict', threatened to cut his companies off from government contracts and warned of ' serious consequences ' if the billionaire were to finance Democratic Party candidates running against Republicans. "I have no intention of speaking to him," Mr Trump told NBC on Saturday (Jun 7), saying he believed their relationship was over. Unlike most public spats between public figures, this one offers no easy side to take. The two men are, in many ways, cut from the same cloth. They operate with little patience for deliberation and considerable appetite for the spotlight, and are accustomed to getting their own ways. A PERSONAL FIGHT WITH NATIONAL CONSEQUENCES The trouble with breakups is that any fallout doesn't stay between the warring parties. There's always collateral damage. For example, after Mr Trump threatened to pull government deals with Mr Musk's companies, Tesla shares tanked 14 per cent and lost US$150 billion in value. This very public falling-out carries risks for both men. For Mr Trump, the feud with Mr Musk marks the first major rift with a prominent adviser in his second term. It has shattered the 'bromance' that many assumed would continue and could fracture Mr Trump's support among tech leaders and wealthy donors. Mr Musk, who spent nearly US$300 million in last year's elections, was not only Mr Trump's richest backer, but also a key bridge to Silicon Valley. He helped connect Mr Trump to tech investors and gave the pro-business wing of the Republican Party reason to support the president. Now, Mr Musk's defection could undermine Republican unity on Capitol Hill. His vocal criticism of the debt impact has emboldened some Republican fiscal hawks to oppose Mr Trump's One Big Beautiful Bill Act, which passed the US House late last month. The Bill, which combines tax breaks, spending cuts, border security funding and other priorities, is the centrepiece of Mr Trump's domestic policy agenda. Critics, however, have said it could increase the deficit by as much as US$4 trillion over a decade. If it falters in the Senate due to Republican defections, it would be a significant blow to Mr Trump's legislative agenda. Moreover, Mr Musk's talk of a new centrist party and his massive online influence hint at a potential challenge to the two-party status quo, which should alarm Republican strategists. Although an actual third party is a long shot, even the suggestion feeds a narrative that Mr Trump's brand of Republicanism is alienating a segment of his base. A prolonged Trump-Musk feud could make it harder for Republicans to hold Congress in next year's midterms, given Mr Musk's financial clout and devoted following. FEUD SPREADS TO SPACE Mr Trump, for his part, appears eager to show he won't be dictated to by a billionaire ally. A White House official stressed that the administration is 'not beholden to Elon Musk on policy' and that by attacking the Bill, Mr Musk 'has clearly picked a side' against Mr Trump. In the short term, Mr Trump's hardline stance may shore up his image as a president who puts his agenda above any one person, even the world's richest man. His core base, many of whom harbour scepticism toward tech elites, might even cheer him for standing up to Mr Musk. However, Mr Trump's unpredictable retaliatory streak raises questions in Washington and on Wall Street. Would he really cut off federal contracts to SpaceX and Tesla to punish Mr Musk, even if it jeopardises US interests? NASA and the Pentagon rely heavily on SpaceX for America's spaceflight capabilities and military satellite launches. Pulling the plug on SpaceX partnerships could set back crucial programmes (like the International Space Station transport, Moon missions and defence satellite deployments) and force the government to scramble for alternatives. It's an open question how far Mr Trump is willing to go. Even some within Mr Trump's circle may urge caution, given the billions at stake and the fact that SpaceX's Dragon spacecraft is integral to US-led space efforts (NASA has invested roughly US$15 billion in SpaceX projects). So, while the president talks tough, cutting Mr Musk off is not without consequences. Rattled by Mr Musk's initial threat to retire the Dragon spacecraft, NASA and Pentagon officials have contacted at least three competitors - Rocket Lab, Stoke Space and Blue Origin - to assess their rocket development and availability for government missions, according to a report by the Washington Post over the weekend. CAN MUSK AFFORD TO ALIENATE WASHINGTON? For Mr Musk, this episode is a high-stakes gamble that could redefine his role in the tech and political ecosystems. On one hand, Mr Musk has rebranded himself as an independent voice, unafraid to challenge a president he once supported. This could salvage his reputation among moderates or Tesla customers who were uneasy with his closeness to Mr Trump. By distancing himself from Mr Trump, Mr Musk may refocus attention on his companies' innovations rather than partisan politics. He has already said he will curtail political spending going forward, signalling a retreat from the kingmaker role he played in 2024. On the other hand, Mr Musk is now on a collision course with the US government that could have serious business implications. If Mr Trump were to follow through on cancelling contracts, SpaceX stands to lose enormous revenue (an estimated US$22 billion in government deals is now at risk). Mr Musk must also consider the broader impact on Tesla, which until now has benefited from government electric vehicle (EV) incentives and a friendly regulatory environment. If Mr Trump now views Mr Musk as an adversary, Tesla could face a chillier reception in policy areas important to it (such as environmental credits, infrastructure support or foreign trade deals). AN EXPENSIVE BREAKUP What happens next is very much anyone's guess; it could well depend on what either man decides to post next. The Trump-Musk fallout has escalated from a policy disagreement into a personal and political reckoning. Mr Trump is defending his legislative legacy and asserting authority over a defiant former ally. Mr Musk is recasting himself as an independent visionary, willing to challenge power, but at the cost of political access. Whether this fades or hardens, the consequences will be felt well beyond Washington. Ben Chester Cheong is a law lecturer at the Singapore University of Social Sciences, and of counsel at RHTLaw Asia. He is a visiting fellow in law at the University of Reading, and a centre researcher at the University of Cambridge.
CBC
15 hours ago
- Politics
- CBC
Trump and Elon's messy breakup
A feud between Elon Musk and U.S. President Trump escalated and exploded over the course of 72 hours last week. It started off with Musk's criticism of Trump's new spending bill, calling it a "disgusting abomination." Trump later criticized Musk during a press conference in the Oval Office, saying that he would have won the 2024 election without the millions of dollars Musk spent to support him. From there, a barrage of attacks ensued over social media, and threats to cancel government contracts and cooperation. Dasha Burns, Politico's White House Bureau Chief and host of "The Conversation with Dasha Burns", is here to walk through the twists and turns of this public breakup, and reflect on who wins and who loses when two of the most powerful people in the world fight.
Japan Times
17 hours ago
- Business
- Japan Times
The MAGA odd couple turns combustible
Relationship status: It's complicated. The simmering feud between U.S. President Donald Trump and tech titan Elon Musk has gone public, sending Tesla's stock tumbling then 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 Thursday, Musk signaled he was open to a detente. Reports of a Friday phone call surfaced and were then dismissed by Trump, and all against the backdrop of pleadings from a MAGA world riven by the prospect of their leaders turning on each other. Yet little is permanent in Trump world, except for chaos and disruption. Where this goes from here 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. This, of course, is no way to run a country. The daylong brawl starkly revealed what had always been plainly obvious: This relationship is transactional and has always smelled of corruption, with Musk's $270 million campaign contribution buying him a powerful foothold in the 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 the midterms, 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 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. 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, the wannabe kingmaker, threatened on X on Tuesday. 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 fueled Trump's campaign and the GOP more broadly. "Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,' Musk wrote on X. "Such ingratitude.' 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 connection to Jeffrey Epstein, Musk tests his power over MAGA and puts himself — and his companies — at risk of canceled 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,' Mr. 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. 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 the 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. Nia-Malika Henderson is a politics and policy columnist for Bloomberg Opinion.
Yahoo
2 days ago
- Automotive
- Yahoo
Trump: Musk Faces 'Serious Consequences' If He Backs Dems Over Budget Bill
President Donald Trump said billionaire Elon Musk would face 'serious consequences' if he threw his support behind Democrats running against Republican backers of the so-called Big Beautiful Bill. Trump issued the threat in a phone interview with NBC on Saturday, where he also noted he has no intention of speaking to Musk after their public falling out. The president said he 'would assume' the relationship between the two is over. 'I'm too busy doing other things,' he told NBC. 'I have no intention of speaking to him.' 'I think it's a very bad thing, because he's very disrespectful. You could not disrespect the office of the president,' he added. Trump and Musk engaged in a very heated war of words Thursday that stemmed from their differing views over Trump's 'big, beautiful bill.' Musk recently left his position in the federal government and ramped up his criticism of the legislation, which he has called the 'Big Ugly Bill' and a 'disgusting abomination.' Trump told NBC Musk's insults were actually a 'big favor' because it got people to focus on the bill and 'see how good it is.' 'But I think Elon, really, I think it's a shame that he's so depressed and so heartbroken,' Trump said. Trump previously threatened to take away Musk's government contracts amid the billionaire's criticisms, but told NBC Saturday he hadn't considered the idea further. White House officials told several outlets Trump also planned to get rid of the red Tesla Model S he bought in March during an event outside the White House with Musk, who is the CEO of the car company. Musk responded to Trump's initial threat by suggesting the administration had withheld the release of some files related to the late financier and sex offender Jeffrey Epstein because Trump had been named in them. Musk also endorsed a message that Trump should be impeached and replaced by Vice President JD Vance. During a podcast interview, Vance called Musk's attacks against Trump a 'huge mistake,' and said it was 'totally insane' to suggest he should replace Trump as president.
Yahoo
2 days ago
- Business
- Yahoo
Trump says he has no desire to fix his relationship with Musk, even after the former 'first buddy' deletes his X posts
President Donald Trump says he has no desire to repair his relationship with Elon Musk. He also said Musk would face "serious consequences" if he funds Democrats. Meanwhile, Musk deleted some of his most incendiary X posts on Saturday. It seems Elon Musk won't be President Donald Trump's "first buddy" again anytime soon. Trump told NBC News on Saturday that he has no plans to repair his relationship with Musk after it imploded this week. When asked if their relationship is done, Trump said, simply, "I would assume so, yeah." Trump said he doesn't intend to speak with Musk and said the tech billionaire was "disrespectful to the office of the President." "I think it's a very bad thing, because he's very disrespectful. You could not disrespect the office of the President," Trump said. The epic and very public fallout began after Musk criticized Trump's tax bill, which the president calls his "One Big Beautiful Bill." During Thursday's dramatic exchange, which took place mostly on the social media networks each billionaire owns, Trump threatened to terminate Musk's government contracts and subsidies. Musk shot back that Trump was in the so-called "Epstein files" in a now-deleted post. In the NBC interview on Saturday, Trump warned Musk against funding Democratic candidates running against GOP members voting in favor of the bill, saying there will be "serious consequences." "If he does, he'll have to pay the consequences for that," Trump said. "He'll have to pay very serious consequences if he does that." Last month, Musk said he would spend "a lot less" on political campaigns in the future. He spent hundreds of millions in support of Trump in 2024. "If I see a reason to do political spending in the future, I will do it," Musk said at the Qatar Economic Forum last month. "I do not currently see a reason." Trump's remarks on Saturday came after Musk deleted some X posts from his account. He deleted the post referencing the Epstein files and a video he re-posted that appeared to show Trump partying with Epstein in the 1990s. Musk also deleted an X post in which he called a Trump comment an "obvious lie" and another post saying SpaceX would decommission its Dragon spacecraft "immediately." White House press secretary Karoline Leavitt told Business Insider that passing the tax bill is the president's priority. "President Trump and the entire Administration will continue the important mission of cutting waste, fraud, and abuse from our federal government on behalf of taxpayers, and the passage of the One Big Beautiful Bill is critical to helping accomplish that mission," Leavitt said in a statement. Representatives for Musk did not respond to a request for comment from BI. The repercussions from Musk and Trump's dispute were swift, affecting the price of Tesla stock and Dogecoin. A senior White House official told BI that Trump is now considering selling his Tesla. On Saturday, Vice President JD Vance said it was a "huge mistake" for Musk to "go after the president" during the newest episode of "This Past Weekend w/ Theo Von." "I'm not saying he has to agree with the bill or agree with everything that I'm saying," Vance said. "I just think it's a huge mistake for the world's wealthiest man, I think one of the most transformational entrepreneurs ever — that's Elon — to be at this war with the world's most powerful man." During the interview, Vance said he thinks everything will be fine between the pair if Musk "chills out a little bit." "Hopefully Elon figures it out and comes back into the fold," Vance said, adding that Trump had been a "little frustrated" with Musk's recent criticisms. "But I think he's been very restrained because the president doesn't think that he needs to be in a blood feud with Elon Musk, and I actually think if Elon chilled out a little bit, everything would be fine," Vance said. Musk responded to Vance's comment on X on Saturday, writing, simply, "Cool." Read the original article on Business Insider
