WASHINGTON, D.C. – Tensions between Elon Musk and President Donald Trump have reached new heights as Musk warned that Trump’s expansive tariff plans and the Big Beautiful Bill could push the US into recession by late 2025.
The Tesla and SpaceX boss posted his warning on X, highlighting a sharp break from his earlier support for Trump. This dispute, which centres on Trump’s major legislative proposal called the “Big Beautiful Bill”, has fuelled intense debate in Washington.
Musk’s outspoken criticism of the bill’s effect on government spending and the national debt has drawn a strong response from Trump, who said he felt let down by his former ally.
The row became public this week, focusing on the “Big Beautiful Bill”, a large tax and spending plan that Trump claims is the foundation of his second-term goals. After a narrow House vote last month, the bill moved forward, aiming to extend first-term tax cuts, boost defence and border security funding, and lift the debt ceiling by $5 trillion.
However, the nonpartisan Congressional Budget Office (CBO) estimates the plan would add $2.4 trillion to the national debt over the next ten years, raising strong objections from fiscal conservatives and Musk.
Elon Musk’s Departure
Elon Musk, who recently left his post leading the Department of Government Efficiency (DOGE), has called the legislation a “disgusting abomination” and accused it of being packed with wasteful spending.
He urged politicians to reject the bill, arguing that its scale would worsen the budget deficit and load working Americans with unsustainable debt. “This spending bill is the largest debt ceiling hike in US history,” Musk wrote on X. “It will blow the budget deficit up to $2.5 trillion and saddle Americans with more debt than ever.”
The CBO’s figures back up Musk’s concerns. They project that the bill’s tax cuts would lower federal revenue by $3.7 trillion over a decade, while spending would only fall by $1.3 trillion. The bill also drops the electric vehicle tax credit, a move that hits Tesla directly.
Though Musk once supported ending the credit, sources say the change now fuels his criticism.
Trump, meanwhile, voiced his irritation at Musk’s sudden opposition. Speaking at the White House alongside German Chancellor Friedrich Merz, Trump told reporters, “I’m very disappointed in Elon. He knew exactly how this bill works.”
Trump suggested Musk’s protest was driven by Tesla’s loss of the EV tax credit, which he said could cost the company billions. The president also hinted at possible cuts to government contracts with Musk’s businesses, including SpaceX, which only days ago announced it would retire its Dragon spacecraft after Trump’s remarks.
Calling for Impeachment
The argument has turned personal. Musk liked a post on X calling for Trump’s impeachment and for Vice President JD Vance to take over. He also claimed, without evidence, that Trump’s name appears in files related to Jeffrey Epstein, a statement dismissed by the White House as “unfortunate.”
Some Trump loyalists, including Steve Bannon, have even suggested deporting Musk, despite his US citizenship, showing just how bitter the fallout has become.
This fight has also split the Republican Party. Fiscal conservatives like Senators Rand Paul and Mike Lee have sided with Musk, echoing worries about the bill’s potential to push national debt, now at $37 trillion, even higher. “I agree with Elon,” Paul posted on X.
We’ve both seen huge government waste. Another $5 trillion in debt is a big mistake.” House Speaker Mike Johnson defended the bill, saying it contains record spending cuts of $1.6 trillion and calling the CBO’s analysis flawed. “No government ever cut $1.6 trillion in a single bill,” Johnson told the press.
Musk’s warning about recession risks from Trump’s tariffs has added fresh concerns. Trump’s tariffs on major trading partners like China and Canada have already unsettled markets and raised fears of trade retaliation.
Tariffs Could Cause Recession
Big firms such as Procter & Gamble and Unilever have reported falling customer demand due to tariff worries, and the CBO estimates that trade retaliation and less investment could add $300 billion to the federal deficit.
Elon Musk’s prediction that these actions could trigger a recession has increased anxiety among economists and investors, some of whom warn that higher borrowing costs might squeeze the economy even more.
The sudden split between Musk and Trump has surprised many, given Musk’s strong financial backing for Trump’s 2024 campaign. Musk’s recent exit from his government post and his vocal push against the “Big Beautiful Bill” have encouraged other Republicans to challenge the bill in the Senate, where Trump’s slim majority faces growing pushback.
As debate rages, the clash between Musk and Trump highlights a larger struggle over how the US manages its finances and the possible fallout from Trump’s plans.
With the national debt climbing and recession worries hanging over Washington, the outcome of this battle could set the course for the US economy for years. For now, Musk’s call to scrap the bill and his warnings about tariffs have stirred even more uncertainty, leaving both Washington and the public watching every move.
Sources: WSJ, Politico, Reuters
