'Can't be good for either side': Allies fear fallout from Trump–Musk feud
On one side, there's the US president – a man who has already shown unprecedented appetite for using the levers of power to go after opponents.
On the other: the world's richest man, with a business empire entwined deep into the heart of the US economy and space industry.
'Get your popcorn,' Chaim Siegel, an analyst at financial services company Elazar Advisors told AFP.
'I've never seen two people this big go at it this nasty in all my time in the business. Can't be good for either side.'
Trump allies worry that the messy breakup could have ramifications for his legacy and Republicans' election prospects, as well as damaging the administration's ties with Silicon Valley donors.
Musk is also in jeopardy. Trump has threatened to scrap the tech mogul's lucrative subsidies and federal contracts, potentially devastating Tesla and risking some $22 billion of SpaceX 's government income – even if it remains unclear how the US government itself would manage the fallout.
MAGA vs 'Tech bros'
The catalyst for the split was Trump's sprawling domestic policy bill, a package that Musk has complained in increasingly apocalyptic terms will swell the budget deficit, undermining the president's agenda.
But the issue quickly has become extraordinarily bitter.
Musk called Thursday for Trump's impeachment, implying that the Republican was linked to the crimes of financier Jeffrey Epstein, who died by suicide after being charged with sex-trafficking to elite, international clients.
The dust-up has rocked to the core the fragile coalition between the populists in Trump's 'MAGA' movement and the Musk-friendly 'tech bros' whose podcasts and cash helped secure the Republican's second term.
Influential figures on the populist side hit back with calls for investigations into South African-born Musk's immigration status, security clearance and alleged drug use.
Meanwhile in Congress, Republicans are calling for a ceasefire, worried that the world's richest man will use his deep pockets to exact revenge in the 2026 midterm congressional election.
From election wingman to DOGE chief
Trump and Musk were never obvious allies, but the flamboyant entrepreneur turned into the Republican's surprise wingman –and mega-donor – during the 2024 election.
Musk ended up spending $290 million to help the campaigns of Trump and other Republicans. He was then rewarded with overseeing the so-called Department of Government Efficiency (DOGE), which embarked on ruthless and, critics say, ideologically driven slashing of the State Department and other bodies.
'Without me, Trump would have lost the election,' Musk posted on his social platform X at the height of a dust-up that US media labelled the 'Clash of the Titans'.
As president, Trump is arguably the most powerful person in the world.
But Musk's megaphone – X – is much bigger than Trump's Truth Social and he is a prolific trash talker, instantly reaching many millions of people.
Musk's portfolio of almost 100 contracts with 17 government agencies also gives him enormous power over the federal bureaucracy, including the US space program.
Trump, on the other hand, has ultimate say over those contracts. If Trump heeds his supporters' calls for investigations he could tie Musk down for years, revoking his security clearances and issuing executive orders to gum up his business.
Congress in balance
Trump, 78, may need to walk a delicate line given the risk that Musk will lobby Congress to scuttle his budget plans.
Republican lawmakers – most of whom are fighting elections next year – have welcomed Musk with open arms, nodding approvingly at his calls for federal cuts and grateful for his campaign cash.
But when it comes to picking sides, most Republicans who have spoken out on the spat are sticking with Trump. The president has a long history of forcing wavering lawmakers to step back into line.
'Every tweet that goes out, people are more in lockstep behind President Trump, and (Musk's) losing favour,' Congressman Kevin Hern told political website NOTUS.
Musk, who dreams of colonising Mars, responded with a longer view of the situation.
'Some food for thought as they ponder this question: Trump has 3.5 years left as President,' Musk posted, 'but I will be around for 40+ years.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
9 minutes ago
- LeMonde
Federal Reserve Governor Kugler steps down, giving 'very happy' Trump a slot to fill
The Federal Reserve announced Friday, August 1, that Governor Adriana Kugler will step down next week, opening up a spot on the central bank's powerful board that President Donald Trump will be able to fill. Kugler, who did not participate in the Fed's policy meeting earlier this week, would have completed her term in January. Instead, she will retire August 8. She did not provide a reason for stepping down in her resignation letter. Trump said he was "very happy" about the upcoming vacancy, after Kugler submitted her letter of resignation to him. He has continued his attacks on the Fed since chair Jerome Powell said Wednesday that the central bank would keep its short-term interest rate unchanged. Powell also said the Fed could take months to evaluate the impact of tariffs on the economy before deciding to cut rates, as Trump has demanded. Powell is "a stubborn MORON, must substantially lower interest rates, NOW," Trump posted early Friday morning, before the monthly jobs report was released. That report showed hiring slowed in July and was much lower in May and June than had been initially reported. Kugler was appointed to the Fed's seven-member board of governors by former President Joe Biden in September 2023. She was the first Hispanic Fed governor, and prior to joining the Fed, was a professor at Georgetown University and was the US representative to the World Bank. She will return to the Georgetown faculty in the fall. "I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation," she said in her resignation letter. The rate debate In her last speech as a Fed governor two weeks ago, Kugler expressed support for Powell's view that the central bank should keep rates unchanged while officials monitor the economy to see how Trump's tariffs affect inflation and the economy. Trump, meanwhile, has said he will appoint Fed officials who favor cutting rates. One complication is that Powell's term as chair ends in May 2026. But his position on the Fed's governing board lasts through January 2028. As a result, he could stay on the board even after stepping down as chair, and simply remain as one of seven governors. There is some precedent for such a step: Marriner Eccles, who served as Fed chair in the 1930s, remained on the board after completing his term as chair. If Powell took such a step, that would mean whomever the Trump administration chose to replace Kugler could then be elevated to chair after Powell finishes as chair in May 2026. In other words, to get their choice of Fed Chair in 2026, the Trump White House may choose to appoint that person to replace Kugler as governor, and then elevate them to Fed chair in May 2026. Powell has declined to answer at the last two press conferences whether he will leave the board when he is done as chair.
France 24
40 minutes ago
- France 24
Brazilians burn Trump effigies as tariffs spark anger
Anti-Trump protests were held in Brasilia, Sao Paulo and Rio de Janeiro, a sign of souring ties between two of the Americas' largest economies. The demonstrations were modestly attended, but reflected broad anger at Trump's decision to put a 50 percent tariff on Brazilian exports and to sanction a top judge. The mercurial US president has openly admitted he is punishing Brazil for prosecuting his political ally, ex-president Jair Bolsonaro. The far-right Brazilian firebrand is currently on trial for plotting a coup after failing to win reelection in 2022. Bolsonaro supporters stormed Brazil's congress in January 2023, ransacking the chambers and attacking police, in scenes reminiscent of Trump supporters' attack on the US Capitol two years before. A Brazilian general has given evidence that the alleged plotters also wanted to assassinate leftist President Luiz Inacio Lula da Silva and several other public officials. Trump has called the trial a "witch hunt" and his Treasury Department has sanctioned Supreme Court Justice Alexandre de Moraes in response. Trump also signed an executive order slapping 50 percent tariffs on Brazilian imports, citing Bolsonaro's "politically motivated persecution." The tariff is due to enter into force on August 6. Moraes, in a rare public address, said Friday he pledged to "continue working" despite a US travel ban and assets freeze. "This Court, the Office of the Attorney General, and the Federal Police will not bow to these threats," he said during a court session. And he vowed the court would remain "absolutely uncompromising in defending national sovereignty and its commitment to democracy." Moraes has repeatedly taken aim at the Brazilian far-right and its figurehead Bolsonaro, as well as tech titan Elon Musk, over online disinformation. He is also the presiding judge in the coup trial of Bolsonaro, who risks a 40-year prison sentence. Secretary of State Marco Rubio has accused Moraes of "serious human rights abuses, including arbitrary detention involving flagrant denials of fair trial guarantees and infringing on the freedom of expression." Moraes recently ordered Bolsonaro to wear an electronic ankle bracelet pending the conclusion of his trial, and barred him from leaving his home at night or using social media pending an investigation into potential obstruction of justice.
France 24
an hour ago
- France 24
US Fed governor to resign early at critical time for central bank
Kugler, who was nominated by former president Joe Biden in 2023, did not give a reason for stepping down from the Fed's board. Her term was due to end in January 2026, but her departure -- effective August 8 -- gives Trump the chance to appoint someone new to the Fed sooner than anticipated, shaping its leadership. Trump said he was "very happy" about the upcoming vacancy, after Kugler submitted her letter of resignation to him. The personnel shift comes as the Fed faces intensifying pressure under Trump, who has repeatedly criticized the central bank's chief Jerome Powell for not lowering interest rates sooner. Trump has also suggested that what he says is an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat. Powell's term as Fed chair ends in May 2026. Kugler did not attend the Fed's two-day policy meeting this week due to a personal matter, and did not vote on its decision. In a mid-July speech, she made the case for holding rates at the current level for some time, citing inflationary pressures and relatively low unemployment levels. "It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System," Kugler wrote in her resignation letter. Fed policymakers have approached further rate cuts with caution -- since their last reduction in December -- as they assess the impact of Trump's wide-ranging and fluctuating tariffs on inflation. They expect to have a better gauge of the duties' effects after data from the summer months, given that tariffs take time to filter through the economy. But Trump has urged for interest rate reductions, and for the benchmark lending rate to be lowered by as much as three percentage points. Early Friday, Trump touted the fact that two Fed governors voted against the central bank's Wednesday decision to keep rates unchanged again. He said on social media: "STRONG DISSENTS ON FED BOARD. IT WILL ONLY GET STRONGER!" He also called Powell a "stubborn moron" and said the Fed's board should "assume control" if Powell continued to support holding rates steady. Kugler is expected to return to Georgetown University as a professor this year, the Fed said Friday.
