The escalating feud between former President Donald Trump and billionaire entrepreneur Elon Musk over the controversial “One Big Beautiful Bill Act” is shaking political and financial landscapes. This high-profile public conflict centers on disagreements about the bill’s spending, national debt impact, and tax credit removals affecting electric vehicles (EVs).
Origins of the Trump-Musk Feud
Elon Musk, who previously led the Department of Government Efficiency (DOGE) with an agenda to slash $2 trillion from the federal budget, vehemently opposes the new bill. He calls it a “disgusting abomination” that could increase the U.S. national debt by up to $5 trillion in ten years, citing estimates from the Congressional Budget Office.
In contrast, Donald Trump supports the bill as a key part of his “America First” agenda, emphasizing extended tax cuts and increased defense spending. Trump expressed frustration with Musk, accusing him of only opposing the bill after it removed EV tax credits that benefit Tesla.
Public Insults and Political Threats
The conflict has escalated with Trump accusing Musk of “Trump derangement syndrome” and threatening to cut government contracts to Musk’s companies, including SpaceX and Starlink. Musk fired back with serious allegations, suggesting Trump’s name appears in Jeffrey Epstein’s files and endorsing calls for Trump’s impeachment.
Impact on Legislation and Market
The bill narrowly passed the House and is under Senate review, aiming to raise the debt ceiling by $4 trillion, cut social programs like Medicaid, and increase defense and border security funding. However, fiscal conservatives—including Musk, Senators Ron Johnson and Ted Cruz—argue the bill doesn’t sufficiently reduce federal spending.
Tesla stock plunged 14%, wiping out $150 billion in market value, as investors worry about Musk’s public feud with Trump and the bill’s effects on EV incentives.
Political Fallout and Republican Division
Musk’s threats to reduce political donations and suggestions to form a new political party add strain to Republican efforts to maintain congressional control in the 2026 midterms. Some GOP leaders dismiss Musk’s influence, while others support his call for deeper budget cuts.
Attempts at Cooling Tensions
Despite agreeing with a call for peace from investor Bill Ackman, Musk and Trump’s public exchanges continue to fuel uncertainty. The White House remains committed to passing the bill by July 4, downplaying Musk’s criticisms.
Conclusion: A Rift with Broad Implications
The Trump-Musk feud over the “One Big Beautiful Bill Act” underscores growing tensions within the Republican Party and poses risks to legislative progress and market stability. As Senate debates continue, this conflict could shape the future of U.S. fiscal policy and political alliances.
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