'Terminate Elon’s Subsidies': Trump and Musk Trade Blows Online
Trump and Musk clashed publicly over a $1.6 trillion spending bill and government subsidies. Trump defended the bill and suggested cutting Musk’s contracts; Musk criticized Trump’s policies and hinted at forming a new political party, sparking political and market reactions.
By Kamaran Aziz
ERBIL (Kurdistan24) – U.S. President Donald Trump and entrepreneur Elon Musk engaged in a public exchange of criticism on Thursday following disagreements over a major spending bill and government subsidies. The dialogue, which unfolded on social media, marked a visible shift in the once-aligned relationship between the two high-profile figures.
President Trump, addressing the situation on his Truth Social platform, defended the spending bill as a historic legislative achievement, describing it as a “Record Cut in Expenses” worth $1.6 trillion and claiming it included the “Biggest Tax Cut ever given.” He warned that failure to pass the bill could lead to a 68% tax increase and other economic consequences.
Trump added that one method to reduce federal expenditures would be to cancel government contracts and subsidies involving Musk, noting, “The easiest way to save money in our Budget... is to terminate Elon’s Governmental Subsidies and Contracts.”
Further commenting on the deteriorating relationship, Trump said Musk had grown “wearing thin” and had reacted strongly after the administration rolled back the electric vehicle (EV) mandate. He claimed Musk had been informed of the policy shift in advance.
Musk, CEO of Tesla and SpaceX, responded to Trump’s remarks on his social media platform X (formerly Twitter). He disputed Trump’s characterization of the spending bill, stating, “This bill was never shown to me even once and was passed in the dead of night.” Musk also expressed concern about the economic impact of Trump’s trade policies, asserting, “The Trump tariffs will cause a recession in the second half of this year.”
False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it! https://t.co/V4ztekqd4g
— Elon Musk (@elonmusk) June 5, 2025
Musk also claimed credit for Trump’s 2024 election success, stating, “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.”
Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate.
— Elon Musk (@elonmusk) June 5, 2025
Musk further suggested that it might be time to create a new political party that could represent centrist voters, posting, “Is it time to create a new political party in America that actually represents the 80% in the middle?”
Is it time to create a new political party in America that actually represents the 80% in the middle?
— Elon Musk (@elonmusk) June 5, 2025
In a highly controversial post, Musk alleged—without providing evidence—that Trump was mentioned in documents related to Jeffrey Epstein, the late financier under federal investigation.
Reacting to Trump’s comments about government contracts, Musk announced that SpaceX would begin decommissioning its Dragon spacecraft, which plays a vital role in transporting NASA astronauts to and from the International Space Station (ISS). Though he later walked back the statement in a follow-up post, it prompted concern over ongoing space operations.
NASA spokesperson Bethany Stevens affirmed the agency’s commitment to collaboration, stating on X: “We will continue to work with our industry partners to ensure the President’s objectives in space are met.” With Boeing’s Starliner program still undergoing development, SpaceX’s Crew Dragon remains central to U.S. space access.
The financial markets also responded, with Tesla’s share value reportedly declining significantly following the exchange.
President Trump reiterated his commitment to the spending bill, stating that his administration was addressing longstanding financial challenges. “I didn’t create this mess, I’m just here to FIX IT. This puts our Country on a Path of Greatness,” he posted.
Musk, in contrast, described the legislation as a serious fiscal concern, writing, “Congress is spending America into bankruptcy!”
While the exchange has generated considerable public and political attention, it remains to be seen how this disagreement may influence future policy decisions or political alignments. Observers continue to watch closely as both figures maintain substantial influence over political discourse and national policy.
