Trump threatens Musk’s government deals as feud explodes over tax-cut bill

Trump threatens Musk’s government deals as feud explodes over tax-cut bill
Donald Trump speaks with Elon Musk at the White House in March. A row over the US president's budget bill triggered a bitter public divorce between the US president and his top donor. (AFP)
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Updated 06 June 2025
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Trump threatens Musk’s government deals as feud explodes over tax-cut bill

Trump threatens Musk’s government deals as feud explodes over tax-cut bill
  • Trump asserted that Musk really objected to the president’s elimination of consumer tax credits for electric vehicles
  • Musk’s increasing focus on politics provoked widespread protests at Tesla sites in the US and Europe

WASHINGTON: President Donald Trump threatened on Thursday to cut off government contracts with billionaire Elon Musk’s companies, and Musk suggested Trump should be impeached, as the bromance between the president and his former adviser disintegrated into a barroom brawl.
Trump started the feud in remarks from the Oval Office. Musk quickly responded with posts on his social media site X, and within hours both were trading barbs on their respective social media platforms.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote on his Truth Social.

Their sparring hammered shares of Musk’s electric vehicle maker Tesla, which lost about $150 billion in value, closing down 14.3 percent for the day.
Minutes after the closing bell, Musk replied, “Yes,” to a post on X saying Trump should be impeached.
Trump’s Republicans hold majorities in both chambers of Congress and are highly unlikely to impeach him.

The trouble between the two built up over the week. On Tuesday, Musk began denouncing Trump’s sweeping tax-cut and spending bill. The president held his tongue while Musk, his former adviser, campaigned to torpedo the bill, saying it would add too much to the nation’s $36.2 trillion in debt.
Trump broke his silence on Thursday, telling reporters in the Oval Office he was “very disappointed” in Musk.

“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said.

As the spat got increasingly bitter, Musk also posted that Trump “is in the Epstein files,” referring to US government documents on disgraced financier Jeffrey Epstein, who committed suicide in jail while awaiting trial for sex crimes.

“That is the real reason they have not been made public. Have a nice day, DJT!” Musk said, without offering evidence of how he might know the information.
Besides Tesla, Musk’s businesses include rocket company and government contractor SpaceX and its satellite unit Starlink. The billionaire spent nearly $300 million in the 2024 election in support of Trump and other Republican candidates.
Musk, whose space business plays a critical role in the US government’s space program, said that as a result of Trump’s threats he planned to begin decommissioning SpaceX’s Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station.

SpaceX’s cheap, reusable Falcon 9 rockets have made it the world’s most active launch provider. Its vast Starlink network has disrupted the global satellite communications market.

Ever-present ally
After serving as the biggest Republican donor in the 2024 campaign season, Musk became one of Trump’s most visible advisers as head of the Department of Government Efficiency, which mounted a sweeping effort to downsize the federal workforce and slash spending.
Musk was frequently present at the White House and made multiple appearances on Capitol Hill, sometimes carrying his young son.
Only six days before Thursday’s blowup, Trump and Musk held a joint appearance in the Oval Office, where Trump praised Musk’s government service and both men promised to continue working together.
A prolonged feud between Trump and Musk could make it more difficult for Republicans to keep control of Congress in next year’s midterm elections. In addition to his campaign spending, Musk has a huge online following and helped connect Trump to parts of Silicon Valley and wealthy donors.

Musk had already said he planned to curtail his political spending in the future.
Soon after Trump’s Oval Office comments, Musk polled his 220 million followers on X: “Is it time to create a new political party in America that actually represents the 80 percent in the middle?“

‘Kill the bill’
Musk’s blistering attacks this week targeted what Trump calls his “big, beautiful bill.” Musk called it a “disgusting abomination” that would deepen the federal deficit, and his posts amplified a rift within the Republican Party that could threaten the bill’s prospects in the Senate. Nonpartisan analysts say Trump’s bill could add $2.4 trillion to $5 trillion to the nation’s $36.2 trillion in debt.
Trump asserted that Musk really objected to the president’s elimination of consumer tax credits for electric vehicles.
Trump also suggested that Musk was upset because he missed working for Trump.
“He’s not the first,” Trump said on Thursday. “People leave my administration ... then at some point they miss it so badly, and some of them embrace it and some of them actually become hostile.”
Musk wrote on X, “KILL the BILL,” adding he was fine with Trump’s planned cuts to electric vehicle credits as long as Republicans rid the bill of “mountain of disgusting pork” or wasteful spending.
He also pulled up past quotes from Trump decrying the level of federal spending, adding, “Where is this guy today?”
Trump, meanwhile, posted on Truth Social that Musk “went crazy.”

‘Ingratitude’

Politicians and their donor patrons rarely see eye to eye. But the magnitude of Musk’s support for Trump, spending at least $250 million backing his campaign, and the scope of free rein the president gave him to slash and delve into the government with the Department of Government Efficiency is eclipsed only by the speed of their falling-out.
Musk offered up an especially stinging insult to a president sensitive about his standing among voters: “Without me, Trump would have lost the election,” Musk retorted. “Such ingratitude,” Musk added in a follow-up post.
Musk first announced his support for Trump shortly after the then-candidate was nearly assassinated on stage at a Pennsylvania rally last July. News of Musk’s political action committee in support of Trump’s election came days later.
Musk soon became a close adviser and frequent companion, memorably leaping in the air behind Trump on stage at a rally in October. Once Trump was elected, the tech billionaire stood behind him as he took the oath of office, flew on Air Force One for weekend stays at Mar-a-Lago, slept in the Lincoln Bedroom and joined Cabinet meetings wearing a MAGA hat — sometimes more than one.
Three months ago, Trump purchased a red Tesla from Musk as a public show of support for his business as it faced blowback.
Musk bid farewell to Trump last week in a somewhat somber news conference in the Oval Office, where he sported a black eye that he said came from his young son but that seemed to be a metaphor for his messy time in government service.
Trump, who rarely misses an opportunity to zing his critics on appearance, brought it up Thursday.
“I said, ‘Do you want a little makeup? We’ll get you a little makeup.’ Which is interesting,” Trump said.

‘Disgusting abomination’

The Republican president’s comments came as Musk has griped for days on social media about Trump’s spending bill, warning that it will increase the federal deficit. Musk has called the bill a “disgusting abomination.”
“He hasn’t said bad about me personally, but I’m sure that will be next,” Trump said Thursday in the Oval Office, presaging the rest of his day. “But I’m very disappointed in Elon. I’ve helped Elon a lot.”
Observers had long wondered if the friendship between the two brash billionaires known for lobbing insults online would combust in dramatic fashion. It did, in less than a year.
White House aides were closely following the drama playing out on dueling platforms Thursday with bemusement, sharing the latest twists and turns from the feud between their boss and former co-worker, as well as the social media reaction and memes. Officials in the extremely online administration privately expressed the belief that like the other digital scuffles that have defined Trump’s political career, this would also work out in his favor.
Trump said Thursday in the Oval Office that he and Musk had had a great relationship but mused: “I don’t know if we will anymore.”
He said some people who leave his administration “miss it so badly” and “actually become hostile.”
“It’s sort of Trump derangement syndrome, I guess they call it,” he said.
He brushed aside the billionaire’s efforts to get him elected last year, including a $1 million-a-day voter sweepstakes in Pennsylvania. The surge of cash Musk showed he was willing to spend seemed to set him up as a highly coveted ally for Republicans going forward, but his split with Trump, the party’s leader, raises questions about whether they or any others will see such a campaign windfall in the future.
Trump said Musk “only developed a problem” with the bill because it rolls back tax credits for electric vehicles.
“False,” Musk fired back on his social media platform as the president continued speaking. “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!”
In another post, he said Trump could keep the spending cuts but “ditch the MOUNTAIN of DISGUSTING PORK in the bill.”
Besides Musk being “disturbed” by the electric vehicle tax credits, Trump said another point of contention was Musk’s promotion of Jared Isaacman to run NASA. Trump withdrew Isaacman’s nomination over the weekend and on Thursday called him “totally a Democrat.”
Musk continued slinging his responses on social media. He shared some posts Trump made over a decade ago criticizing Republicans for their spending, musings made when he, too, was just a billionaire lobbing his thoughts on social media.
“Where is the man who wrote these words?” Musk wrote. “Was he replaced by a body double!?”
On the White House grounds Thursday afternoon, Trump’s red Tesla still sat in a parking lot.

Following Trump’s remarks, a White House official, speaking on background, underscored the shift in the once-close dynamic between Musk and Trump.
“The president is making it clear: this White House is not beholden to Elon Musk on policy,” the official said. “By attacking the bill the way he did, Musk has clearly picked a side.”


Over 100 former senior officials warn against planned staff cuts at US State Department

Over 100 former senior officials warn against planned staff cuts at US State Department
Updated 04 July 2025
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Over 100 former senior officials warn against planned staff cuts at US State Department

Over 100 former senior officials warn against planned staff cuts at US State Department
  • State Secretary Rubio faulted for recklessness in amid "unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats"

WASHINGTON: More than 130 retired diplomats and other former senior US officials issued an open letter on Thursday criticizing a planned overhaul of the State Department that could see thousands of employees laid off.
“We strongly condemn Secretary of State Marco Rubio’s announced decision to implement sweeping staff reductions and reorganization at the US Department of State,” the officials said in the letter.
The signatories included dozens of former ambassadors and senior officials, including Susan Rice, who served as national security adviser under President Barack Obama, a Democrat.
The timing of the cuts remains unclear, with the US Supreme Court expected to weigh in at any moment on a bid by US President Donald Trump’s administration to halt a judicial order blocking the firings.
The administration in late May notified Congress of a plan to overhaul its diplomatic corps that could cut thousands of jobs, including hundreds of members of its elite Foreign Service who advocate for US interests in the face of growing assertiveness from adversaries such as China and Russia.
Initial plans to send the notices last month were halted after a federal judge on June 13 temporarily blocked the State Department from implementing the reorganization plan.
The shake-up forms part of a push by Trump to shrink the federal bureaucracy, cut what he says is wasteful spending and align what remains with his “America First” priorities.
“At a time when the United States faces unprecedented challenges from strategic competitors, ongoing conflicts, and emerging security threats, Secretary Rubio’s decision to gut the State Department’s institutional knowledge and operational capacity is reckless,” the former officials wrote. 

 

 

 


US Supreme Court sides with Trump in South Sudan deportation fight

US Supreme Court sides with Trump in South Sudan deportation fight
Updated 04 July 2025
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US Supreme Court sides with Trump in South Sudan deportation fight

US Supreme Court sides with Trump in South Sudan deportation fight
  • Trump administration has sought to deport 8 migrants to unstable South Sudan
  • District judge had said the deportation attempt violated his injunction

WASHINGTON: The US Supreme Court again sided with President Donald Trump’s administration in a legal fight over deporting migrants to countries other than their own, lifting on Thursday limits a judge had imposed to protect eight men who the government sought to send to politically unstable South Sudan.
The court on June 23 put on hold Boston-based US District Judge Brian Murphy’s April 18 injunction requiring migrants set for removal to so-called “third countries” where they have no ties to get a chance to tell officials they are at risk of torture there, while a legal challenge plays out.
The court on Thursday granted a Justice Department request to clarify that its June 23 decision also extended to Murphy’s separate May 21 ruling that the administration had violated his injunction in attempting to send a group of migrants to South Sudan. The US State Department has urged Americans to avoid the African nation “due to crime, kidnapping and armed conflict.”
Two liberal justices, Sonia Sotomayor and Ketanji Brown Jackson, dissented from the decision.
The court said that Murphy should now “cease enforcing the April 18 injunction through the May 21 remedial order.”
Murphy’s May 21 order mandating further procedures for the South Sudan-destined migrants prompted the US government to keep the migrants at a military base in Djibouti. Murphy also clarified at the time that non-US citizens must be given at least 10 days to raise a claim that they fear for their safety.
After the Supreme Court lifted Murphy’s April injunction on June 23, the judge promptly ruled that his May 21 order “remains in full force and effect.” Calling that ruling by the judge a “lawless act of defiance,” the Justice Department the next day urged the Supreme Court to clarify that its action applied to Murphy’s May 21 decision as well.
Murphy’s ruling, the Justice Department said in court filings, has stalled its “lawful attempts to finalize the long-delayed removal of those aliens to South Sudan,” and disrupted diplomatic relations. Its agents are being “forced to house dangerous criminal aliens at a military base in the Horn of Africa that now lies on the borders of a regional conflict,” it added.
Even as it accused the judge of defying the Supreme Court, the administration itself has been accused of violating judicial orders including in the third-country deportation litigation.
The administration has said its third-country policy is critical for removing migrants who commit crimes because their countries of origin are often unwilling to take them back. The Supreme Court has a 6-3 conservative majority. Its three liberal members dissented from the June 23 decision pausing Murphy’s injunction, with Justice Sonia Sotomayor calling it a “gross abuse” of the court’s power that now exposes “thousands to the risk of torture or death.”
After the Department of Homeland Security moved in February to step up rapid deportations to third countries, immigrant rights groups filed a class action lawsuit on behalf of a group of migrants seeking to prevent their removal to such places without notice and a chance to assert the harms they could face.
In March, the administration issued guidance providing that if a third country has given credible diplomatic assurance that it will not persecute or torture migrants, individuals may be deported there “without the need for further procedures.”
Murphy found that the administration’s policy of “executing third-country removals without providing notice and a meaningful opportunity to present fear-based claims” likely violates due process requirements under the US Constitution. Due process generally requires the government to provide notice and an opportunity for a hearing before taking certain adverse actions.
The Justice Department on Tuesday noted in a filing that the administration has received credible diplomatic assurances from South Sudan that the aliens at issue will not be subject to torture.”
The Supreme Court has let Trump implement some contentious immigration policies while the fight over their legality continues to play out. In two decisions in May, it let Trump end humanitarian programs for hundreds of thousands of migrants to live and work in the United States temporarily. The justices, however, faulted the administration’s treatment of some migrants as inadequate under constitutional due process protections.

 


Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk
Updated 03 July 2025
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Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk

Russian shelling kills five in and near eastern Ukrainian city of Pokrovsk
  • Two people had been killed in Pokrovsk, a key logistics hub

KYIV: Russian shelling killed five people on Thursday in and near the eastern Ukrainian city of Pokrovsk, the regional governor said, a key target under Russian attack for months.

Vadym Filashkin, writing on the Telegram messaging app, said two people had been killed in Pokrovsk, a key logistics hub, where local authorities have been urging residents to evacuate.

Two died in Bylitske, northwest of Pokrovsk, and another in Illinivka, between Pokrovsk and Kramatorsk, another frequent target in Russia’s slow westward advance through Donetsk region.


University of California reiterates ban on student government boycotts of Israel

University of California reiterates ban on student government boycotts of Israel
Updated 03 July 2025
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University of California reiterates ban on student government boycotts of Israel

University of California reiterates ban on student government boycotts of Israel

SAN FRANCISCO: The president of the University of California this week reiterated that student governments are prohibited from financial boycotts of companies associated with any particular country, including Israel, as the Trump administration continues its probe of alleged antisemitism on college campuses.
Michael Drake did not mention Israel by name, but he did single out student governments in a letter he sent to chancellors of the university system. He said that while freedom of speech and inquiry are core commitments of the university, its policies also require that financial decisions be grounded in sound business practices, such as competitive bidding.
“This principle also applies to student governments,” he wrote. “Actions by University entities to implement boycotts of companies based on their association with a particular country would not align with these sound business practices.”
UC spokesperson Rachel Zaentz said in a statement that the letter is in keeping with the university’s opposition to financial boycotts of companies associated with a particular country.
“While our community members have the right to express their viewpoints, financial boycotts are inconsistent with UC’s commitment to sound business practices, academic freedom and the free exchange of ideas,” she said.
College campuses exploded with pro-Palestinian protests in the wake of the war in Gaza, including a particularly brutal clash involving police at the University of California, Los Angeles last year. At the start of his term this year, President Donald Trump launched antisemitism probes at several universities, including the University of California, Berkeley.
The US Department of Health and Human Services and National Science Foundation are requiring research grantees to certify they will not engage in boycotts of Israel or promote diversity, inclusion and equity or risk federal funding.
The UC Student Association, which represents students across the campuses, did not immediately respond to a request for comment. But its president, Aditi Hariharan, told the Los Angeles Times that she disagreed with the ban.
“Students already have little influence on how the university works, and student government is one of the few places where they can really get involved and have their voices heard,” she said in an interview before the letter was released.


Trump says ‘didn’t make any progress’ on Ukraine during Putin call

Trump says ‘didn’t make any progress’ on Ukraine during Putin call
Updated 04 July 2025
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Trump says ‘didn’t make any progress’ on Ukraine during Putin call

Trump says ‘didn’t make any progress’ on Ukraine during Putin call
  • Putin told Trump Russia will not ‘give up’ aims in Ukraine: Kremlin
  • Ukraine’s Zelensky hopes for Friday call with US president

WASHINGTON/MOSCOW: US President Donald Trump said he had made no progress with Russian counterpart Vladimir Putin toward a ceasefire in Ukraine after the two leaders spoke by phone on Thursday.

“No, I didn’t make any progress with him at all,” Trump told reporters when asked if he had moved closer toward a deal to end Russia’s invasion, adding that he was “not happy” about the ongoing war.

The Kremlin earlier said Putin told Trump that Moscow will not “give up” on its aims in Ukraine.

The pair spoke as US-led peace talks on ending the more than three-year-old conflict in Ukraine have stalled and after Washington paused some weapons shipments to Kyiv.
The Kremlin said the call lasted almost an hour.

Trump has been frustrated with both Moscow and Kyiv as US efforts to end fighting have yielded no breakthrough.
“Our president said that Russia will achieve the aims it set, that is to say the elimination of the root causes that led to the current state of affairs,” Kremlin aide Yuri Ushakov told reporters.
“Russia will not give up on these aims.”
Moscow has long described its maximalist aims in Ukraine as getting rid of the “root causes” of the conflict, demanding that Kyiv give up its NATO ambitions.
Moscow’s offensive in Ukraine has killed hundreds of thousands of people and Russia now controls large swathes of eastern and southern Ukraine.
Even so, Putin told Trump that Moscow would continue to take part in negotiations.
“He also spoke of the readiness of the Russian side to continue the negotiation process,” Ushakov added.
“Vladimir Putin said that we are continuing to look for a political, negotiated solution to the conflict,” Ushakov said.
Moscow has for months refused to agree to a US-proposed ceasefire in Ukraine.
Kyiv and its Western allies have accused Putin of dragging out the process while pushing on with Russia’s advance in Ukraine.
The Kremlin said that Putin had also “stressed” to Trump that all conflicts in the Middle East should be solved “diplomatically,” after the US struck nuclear sites in Russia’s ally Iran.
Putin and Trump spoke as Kyiv said that Russian strikes on Thursday killed at least eight people in Ukraine.
Ukrainian President Volodymyr Zelensky was visiting ally Denmark on Thursday.
A senior Ukrainian official told AFP that Trump and Zelensky planned to speak to each other on Friday.
The US deciding to pause some weapons shipments has severely hampered Kyiv, which has been reliant on Western military support since Moscow launched its offensive in 2022.
Zelensky told EU allies in Denmark that doubts over US military aid reinforced the need for greater cooperation with Brussels and NATO.
He stressed again that Kyiv had always supported Trump’s “unconditional ceasefire.”
On Wednesday, Kyiv scrambled to clarify with the US what a White House announcement on pausing some weapons shipments meant.
“Continued American support for Ukraine, for our defense, for our people is in our common interest,” Zelensky had said on Wednesday.
Russia has consistently called for Western countries to stop sending weapons to Kyiv.