Elon Musk warns Trump tariffs may cause recession, Tesla stock tumbles 14%
Elon Musk has warned that Donald Trump’s new trade tariffs could trigger a US recession in the second half of the year. The fallout between the two escalated after Musk announced decommissioning SpaceX's Dragon and Tesla stock plummeted 14%.
Washington: Tesla and SpaceX CEO Elon Musk on Friday said that Donald Trump’s aggressive new trade tariffs could trigger the recession by the second half of this year.
The statements came as the public feud between the world’s richest man and US President escalated further.
“The Trump tariffs will cause a recession in the second half of this year,” Musk posted on his X platform.
“If America goes broke, nothing else matters,” he added.
The face-off between them sent shockwaves through the financial markets, with Tesla’s stock plunging over 14 per cent on Thursday (US time), erasing nearly $150 billion in market value.
Trump also said that the “easiest way” for the government to save money would be to “terminate” contracts and subsidies going to billionaire and former adviser Musk.
Musk replied: “In light of the President’s statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately”.
Trump’s threat came after Musk accused the US President of “ingratitude” and said he would have lost the election without him, after the billionaire donated more than $250 million to help elect him last year.
“Oh and some food for thought as they ponder this question: Trump has 3.5 years left as President, but I will be around for 40+ years,” posted Musk.
The breakup between the US President and the world’s richest man is unfurling much like their relationship started — rapidly, intensely and very publicly.
Trump said he was “very disappointed” with Musk after the billionaire lambasted the President’s signature bill of tax cuts and spending plans.
“Whatever,” Musk wrote on his social media platform while responding to Trump in real time.
Musk bid farewell to Trump last week in a subdued 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.
