
Musk should stay out of politics, US Treasury Secretary Bessent says
And investment firm Azoria Partners, which had planned to launch a fund tied to Musk's automaker Tesla, said it was delaying the venture because the party's creation posed "a conflict with his full-time responsibilities as CEO".
Musk said on Saturday he was establishing the 'America Party' in response to Trump's tax-cut and spending bill, which Musk claimed would bankrupt the country.
Speaking on CNN on Sunday, Treasury chief Scott Bessent said the boards of directors at Musk's companies – Tesla and rocket firm SpaceX – likely would prefer him to stay out of politics.
"I imagine that those boards of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities," Bessent said.
Musk, who served as a top adviser to the White House on trimming the size of government during the first few months of Trump's presidency, said his new party would in next year's midterm elections look to unseat Republicans in Congress who backed the 'big, beautiful bill'.
Musk spent millions of dollars underwriting Trump's re-election effort and for a time, regularly showed up at the president's side in the Oval Office and elsewhere. Their disagreement over the spending bill led to a falling out that Musk briefly tried unsuccessfully to repair.
The bill, which cuts taxes and ramps up spending on defense and border security, passed last week on party-line votes in both chambers. Critics argue it will damage the economy by significantly adding to the federal budget deficit.
Trump has said Musk is unhappy because the bill, which Trump signed into law on Friday, takes away green-energy credits for Tesla's electric vehicles. The president has threatened to pull billions of dollars Tesla and SpaceX receive in government contracts and subsidies in response to Musk's criticism.
Bessent suggested Musk holds little sway with voters who, he said, liked his Department of Government Efficiency more than him.
'The principles of DOGE were very popular,' Bessent said. 'I think if you looked at the polling, Elon was not.'
INVESTOR REBUKE
Musk's announcement immediately brought a rebuke from Azoria Partners, which said on Saturday it will postpone the listing of its Azoria Tesla Convexity exchange-traded fund. Azoria was set to launch the Tesla ETF this week.
Azoria CEO James Fishback posted on X several critical comments about the new party and reiterated his support for Trump.
"I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO," Fishback said.
On Sunday, Fishback added on X, "Elon left us with no other choice."
The White House did not respond to a request for comment on Musk's announcement, but Stephen Miran, the chairman of Trump's Council of Economic Advisers, defended the bill on ABC's 'This Week'.
'The one, big, beautiful bill is going to create growth on turbo charge,' Miran said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
31 minutes ago
- Business Times
US: Wall St opens lower on tariff jitters; Tesla down on Musk's political plans
[NEW YORK] Wall Street's main indexes opened lower on Monday (Jul 7) as tariff tensions kept investors on edge, while Tesla shares slid after CEO Elon Musk announced his plans to launch a political party. The Dow Jones Industrial Average fell 25.2 points, or 0.06 per cent, at the open to 44,803.36. The S&P 500 fell 20.3 points, or 0.32 per cent, at the open to 6,259.04, while the Nasdaq Composite dropped 110.6 points, or 0.54 per cent, to 20,490.55 at the opening bell. REUTERS


CNA
an hour ago
- CNA
Rubio to attend ASEAN meeting in first Asia trip
WASHINGTON: US Secretary of State Marco Rubio will make his first trip to Asia since taking up his post, travelling this week to Malaysia for meetings with ASEAN allies, his office said on Monday (Jul 7). The trip, starting Tuesday, will see Rubio, who is also US national security advisor, focus on US policy in Asia after months of the Trump administration concentrating on the wars in Ukraine and the Middle East. "In his first trip to Asia as Secretary of State, Secretary Rubio is focused on reaffirming the United States' commitment to advancing a free, open, and secure Indo-Pacific region," spokeswoman Tammy Bruce said in a statement, using Washington's traditional wording alluding to the growing influence of China in the Asia-Pacific region. As with any trip to Asia by a US official, China will be the elephant in the room amid concerns over its expansionary behaviour in the South China Sea, which the United States deems to be provocative. The visit also comes as many countries around the world are waiting for the next step in President Donald Trump's tariff wars. Sweeping levies announced in April were mostly suspended, as Washington engages in negotiations with friends and foes alike. A deadline on the tariffs is due to expire on Wednesday, with Trump suggesting elevated levies would snap back into place on Aug 1 for any trading partners who do not make a deal.

Straits Times
an hour ago
- Straits Times
US signals trade announcements imminent as deadline looms
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Cranes at the Port of Los Angeles are empty of cargo ships as shown with a drone at in San Pedro California, U.S., May 13, 2025. REUTERS/Mike Blake/File Photo WASHINGTON/BRUSSELS - The United States will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline. The clock is ticking down for countries around the world to conclude deals with the U.S. after President Donald Trump unleashed a global trade war that has roiled financial markets and sent policymakers scrambling to protect their economies. Bessent did not say which countries could get deals and what they might contain. Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened. "We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals," Bessent said in an interview with CNBC. "So it's going to be a busy couple of days." TARIFF LETTERS TO START GOING OUT Trump said the U.S. would start delivering tariff letters from 12 p.m. ET (1600 GMT) on Monday, but Bessent said they would not necessarily contain ultimatums. "It's just 'thank you for wanting to trade with the United States of America,'" he said. "'We welcome you as a trading partner, and here's the rate, unless you want to come back and try to negotiate'." Top stories Swipe. Select. Stay informed. Singapore Eligible S'poreans to get up to $850 in GSTV cash, up to $450 in MediSave top-ups in August Singapore Four golf courses to close by 2035, leaving Singapore with 12 courses Singapore Singapore's second mufti Shaikh Syed Isa Semait dies at age 87 Singapore Fewer marriages in Singapore in 2024; greater marital stability for recent unions Singapore Shell heist: Second mastermind gets more than 25 years' jail for siphoning $100m of fuel Asia 72-year-old man on diving trip to Pulau Tioman in Malaysia found dead on the beach Singapore Jail for ex-auxiliary police officer who loaded one bullet and accidentally discharged revolver Singapore $1.46b nickel scam: Ng Yu Zhi opts to remain silent after judge calls for his defence For its part, the European Union still aims to reach a trade deal by July 9 after Commission President Ursula von der Leyen and Trump had a "good exchange", a Commission spokesperson said. It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner. Adding to the pressure, Trump threatened to impose a 17% tariff on EU food and agriculture exports, it emerged last week. Trump had on Sunday said the U.S. was close to finalising several trade pacts and would notify other countries by July 9 of higher tariff rates. He said they would not take effect until August 1, a three-week reprieve. He also put members of the developing nations' BRICS group in his sights as its leaders met in Brazil, threatening an additional 10% tariff on any BRICS countries aligning themselves with "anti-American" policies. The BRICS group comprises Brazil, Russia, India and China and South Africa along with recent joiners Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. Trump's comments hit the South African rand. EU SEEKS EFFECTIVE APPROACH TO TRUMP More broadly, stocks drifted and the U.S. dollar held near multi-year lows after the U.S. flagged the tariff reprieve but failed to provide specifics. The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome. It had already dropped hopes for a comprehensive trade agreement before the July deadline. "We want to reach a deal with the U.S. We want to avoid tariffs," the spokesperson told reporters at a daily briefing. "We want to achieve win-win outcomes, not lose-lose outcomes." Without a preliminary agreement, broad U.S. tariffs on most imports would rise from their current 10% to the rates set out by Trump on April 2. In the EU's case, that would be 20%. Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said. Chancellor Friedrich Merz has repeatedly stressed the need for a quick deal to protect industries vulnerable to tariffs ranging from cars to pharmaceuticals. The German spokesperson said the parties should allow themselves "another 24 or 48 hours to come to a decision". Germany's Mercedes-Benz said on Monday its second-quarter unit sales of cars and vans had fallen 9%, blaming tariffs. Russia said BRICS was "a group of countries that share common approaches and a common world view on how to cooperate, based on their own interests". "And this cooperation within BRICS has never been and will never be directed against any third countries," said Kremlin spokesman Dmitry Peskov. REUTERS