Trump-Musk Feud Erupts: Subsidies Threatened as Tensions Boil Over
A High-Stakes Clash Shakes Washington and Silicon Valley
At 7:02 AM CDT on Tuesday, July 1, 2025, the once-tight alliance between President Donald Trump and billionaire Elon Musk has exploded into a public showdown, threatening to reshape their influence over American politics and industry. The feud, ignited by Musk’s scathing critique of Trump’s “One Big Beautiful Bill Act,” escalated Monday night when Trump threatened to slash billions in government subsidies and contracts to Musk’s companies, including Tesla and SpaceX. Musk fired back with a defiant counterattack, accusing Trump of ingratitude and hinting at deeper retaliatory moves. For families like Maria Delgado’s in Toledo, Ohio—a nurse balancing tax cut hopes with Medicaid cut fears—this clash could ripple far beyond boardrooms.
The rift began simmering last week after Musk, former head of the Department of Government Efficiency (DOGE), denounced the bill as a “disgusting abomination” for its $2.4 trillion deficit projection over a decade. Trump, speaking from the Oval Office during a meeting with German Chancellor Friedrich Merz, expressed “disappointment,” suggesting Musk’s shift stemmed from cuts to electric vehicle subsidies benefiting Tesla. “Elon knew this bill better than anyone, and now he’s upset,” Trump said, hinting their “great relationship” might be over.
The gloves came off on Truth Social, where Trump posted, “The easiest way to save billions is to terminate Elon’s governmental subsidies and contracts. I’m surprised Biden didn’t do it!” Musk retaliated on X, daring Trump with, “Go ahead, make my day,” and later threatening to decommission SpaceX’s Dragon spacecraft, critical for NASA missions. Shares of Tesla plummeted 14% Monday, wiping out $150 billion in market value, underscoring the financial stakes.
Musk’s supporters see a principled stand against deficit spending, while Trump allies argue Musk’s outburst reflects personal pique over lost EV mandates and the withdrawal of his ally Jared Isaacman’s NASA nomination. Yet, whispers on X suggest a deeper rift—possibly Musk’s frustration with Trump’s spending priorities clashing with his own cost-cutting ethos from DOGE, where he slashed just 0.5% of federal spending.
For Maria, this feud feels personal. “I need tax relief, but if Musk’s companies lose contracts, will jobs follow?” she wonders, noting her hospital’s reliance on stable federal funding. The spat’s fallout could disrupt SpaceX’s $20 billion NASA contracts or Tesla’s $11 billion in subsidies, hitting workers and taxpayers alike. Politically, Musk’s threat to form a third party, the “America Party,” if the bill passes, could splinter Republican unity ahead of the 2026 midterms.
This isn’t their first clash—Musk criticized Trump in 2016 and 2022—but the stakes are higher now. Trump’s willingness to wield government power against Musk hints at a personal vendetta, while Musk’s retaliatory moves could hobble critical infrastructure. As the Senate debates the bill’s fate by July 4, DcDailyLetter.com will watch whether this feud fuels a new political force or fades into the noise of Washington’s drama.