- Tuesday, July 01, 2025
Elon Musk has openly declared war on Trump’s $3 trillion spending plan, blasting it as “political suicide” and threatening to launch a new party. The escalating feud highlights deep divides over subsidies, debt, and America’s political future.
By: Vibhuti Pathak
Tech billionaire Elon Musk has dramatically escalated his public feud with President Donald Trump over the administration’s flagship “Big Beautiful Bill”—a sweeping tax cut and spending package currently being debated in the US Senate.
Musk, who previously served as Trump’s advisor and led the Department of Government Efficiency (DOGE) until May, has labeled the bill a “disgusting abomination” and “political suicide for the Republican Party,” citing its $3 trillion price tag and deep cuts to social welfare programs.
Musk’s opposition zeroes in on the bill’s “insane” spending levels and its provision to raise the debt ceiling by $5 trillion. He has also criticized the legislation for phasing out green energy tax credits, a move he argues could “destroy millions of jobs in America and cause immense strategic harm,” especially to companies like Tesla, which rely on such incentives.
Threat to Unseat Supporters and Launch a New Party
Not content with just criticism, Musk has issued political threats against lawmakers backing the bill. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote on X, vowing to support primary challenges against them: “They will lose their primary next year if it is the last thing I do on this Earth”.
Musk has gone further, announcing that if the bill passes, he will form a new “America Party,” arguing that the current system is a “one-party country—the PORKY PIG PARTY!!” and that “it’s time for a new political party that actually cares about the people”. He contends that both Republicans and Democrats are failing to address the national debt and protect the interests of ordinary Americans.
Trump Responds: Subsidy Threats and Personal Jabs
President Trump, for his part, has largely brushed off Musk’s attacks in public, calling him a “wonderful guy” in a recent Fox News interview, even as he acknowledged their disagreements over electric vehicle mandates and fiscal policy. However, on his social platform, Trump hit back harder, suggesting that DOGE—now under new leadership—should investigate the billions in government subsidies Musk’s companies have received.
“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more rocket launches, satellites, or electric car production, and our country would save a FORTUNE,” Trump posted.
Musk’s response was swift: “I am literally saying CUT IT ALL. Now,” he wrote on X, signaling his willingness to forgo government support in protest of the bill.
Political and Economic Fallout
The Musk-Trump feud marks a significant rupture between two of the most influential figures in American business and politics. The dispute has rattled investors, with Tesla’s stock price experiencing major swings and wiping billions from Musk’s net worth, though some value has since recovered.
The Republican Party is reportedly divided, with some members worried that Musk’s threats could fuel primary challenges and jeopardize their majority in the 2026 midterm elections.
Analysts say Musk’s call for a new political party faces steep odds, given the entrenched two-party system in the US. “There are not enough billionaires to form a party in the US, even if they are unhappy with President Trump,” noted Bill Schneider, professor of public policy at George Mason University.
Nonetheless, the feud underscores growing tensions between the business community and policymakers over fiscal responsibility, subsidies, and the future direction of American politics.
