Elon Musk threatens new political party amid rift with Trump
On Monday, as the U.S. Senate debated President Donald Trump's much-anticipated spending legislation dubbed the 'Big, Beautiful Bill,' Musk took to his social media platform X to voice strong opposition. 'Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!' Musk wrote. He added, 'They will lose their primary next year if it is the last thing I do on this Earth.'
Hours later, Musk escalated his criticism, warning that if the 'insane spending bill passes, the America Party will be formed the next day.' He argued that the country needs a viable alternative to what he called the 'Democrat-Republican uniparty,' claiming it has failed to truly represent the American people.
President Donald Trump fired back late Monday through his Truth Social platform, directing his ire at Musk and suggesting federal scrutiny. 'Elon may get more subsidy than any human being in history, by far... Perhaps we should have DOGE (Department of Government Efficiency) take a good, hard look at this? BIG MONEY TO BE SAVED!!!' Trump wrote, accusing Musk of relying heavily on government subsidies.
The tension between the two high-profile figures has been building in recent weeks, fueled by Musk's continued criticism of the bill and prior suggestions that he might form a new political party. On Monday, Musk reiterated those sentiments, labeling the current political landscape as a 'one-party country – !!' He called for the establishment of a new political force that genuinely serves the people.
Musk has pledged to support primary challengers against lawmakers who backed the bill. This pledge marks one of Musk's most tangible political commitments since stepping down from his role as a White House adviser. Though he claimed in May he intended to scale back political donations, having 'done enough,' Federal Election Commission records show that his America PAC contributed to two Florida Republican candidates — Randy Fine and Jimmy Patronis — as recently as March.
Despite his past support for Trump-era immigration policies and his significant contributions — over $275 million during the 2024 election cycle — Musk's opposition to the latest spending package has deepened the rift between him and the Trump administration.
Musk has warned that the bill's passage would exacerbate national debt, calling it 'debt slavery.' The Congressional Budget Office estimates the Senate version would add $3.3 trillion to the deficit over ten years — nearly a trillion more than the House version, which was projected to add $2.4 trillion.
Although the bill includes deeper tax cuts and new revenue-raising provisions, the administration argues it would reduce deficits and stimulate economic growth. However, Musk remains unconvinced, criticizing it for favoring 'industries of the past' and undermining emerging sectors.
He denied that the loss of subsidies for electric vehicles (EVs) and renewable energy was his primary concern, yet he condemned the bill for harming future-focused industries. Trump, for his part, reaffirmed his opposition to EV mandates, stating that while electric cars have their place, Americans should not be forced to adopt them. 'Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV mandate,' Trump wrote.
As the political clash intensifies, Musk appears poised to play a larger role in shaping the nation's political landscape — possibly with a new party on the horizon.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kuwait Times
19 hours ago
- Kuwait Times
US debt worries financial markets
US debt worries financial markets Why are yields on US bonds climbing? PARIS: Since the return of Donald Trump to the White House uncertainty about US financial policy has caused concern as US debt continues to rise. Those concerns have been visible on financial markets as US bond yields have climbed, an indication that investors are worried about the sustainability of the debt of the world's top economy. Those concerns have also affected the dollar, which as the global reserve currency has usually been seen as a safe haven currency. Foreigners have to purchase dollars if they want to buy US bonds, which have also been seen as one of the safest assets in times of volatility. The US dollar lost more than 10 percent during the first half of the year, its worst performance since 1973. The US Treasury raises funds by issuing three types of debt instruments: short-term bills, medium-term notes and long-term bonds. They carry a face value but are sold at a discount, with that price helping determine the yield, or rate of return for investors. Higher yields indicate investors are demanding a higher rate of return to hold US debt, which can be an indication about concern over whether they will eventually be repaid. The yields on 30-year US bonds rose above the symbolic level of 5.0 percent in May, but have since retreated to around 4.8 percent. 'Most of the concerns stem from the 'One Big Beautiful Bill', the law supported by the White House that includes measures to prolong tax cuts brought in by Donald Trump during his first term,' said Gregoire Kounowski, an investment advisor at asset manager Norman K. 'If the text remains unchanged it would add three to four trillion dollars to the US debt,' he added. The bill faces a final vote in the US House of Representatives Thursday after squeaking through the Senate on Tuesday. When Moody's cut the United States's top triple-A credit rating in May it cited rising levels of government debt and the impact of the interest costs on the US budget. 'It was a warning signal for markets and put the trajectory of US debt in the center of concerns,' said Raphael Thuin, head of capital market strategy at Tikehau Capital. Who holds US debt? US debt now totals more than $36.2 trillion according to the US Treasury, or 120 percent of annual economic output. Around $29 trillion of that is bonds that the Treasury sells on markets to investors: principally banks, pension funds and foreign governments. Foreign governments currently own $9 trillion in US debt, with Japan, Britain and China the top holders. China had until March been either the top or the second-largest holder of US government debt. Since the US-China trade war in 2020 during Trump's first term in office, 'China has gotten rid of US debt in favor of gold. It didn't sell its bonds but it didn't replace those that matured,' said Aurelien Buffault, an asset manager at Delubac AM. Safe haven status at risk? The rest of the world buys US debt as they want to hold a solid dollar-denominated asset. The size of the US debt market also makes it attractive to investors. 'It is about 20 percent larger than the European sovereign debt market in terms of capitalization,' said Guy Stear, head of developed markets research at Amundi. That makes it easier to buy and sell US debt quickly. US debt has until recently also benefited from being considered a 'safe haven' investment as the US government was seen as a reliable borrower. However, since April investors have started to pass over US debt and the dollar when seeking safe haven assets, noted Stear. In the current environment, 'investors are looking for alternative safe havens, that is, a currency and assets that protect them when volatility and increased uncertainty,' said Imene Rahmouni-Rousseau, director general of market operations at the European Central Bank. 'It is precisely the euro and European government bonds that have played this role of protective shield' and 'for the first time since the 2011 financial crisis European financial markers are considered very attractive by investors' globally, she opined.- AFP
Arab Times
a day ago
- Arab Times
US judge blocks Trump ban on asylum claims
SACRAMENTO, United States, July 3, (Xinhua): A US federal judge on Wednesday blocked President Donald Trump's latest effort to shut the nation's asylum door, ruling that the White House overstepped both Congress's immigration statutes and the Constitution. In a 128-page opinion, Judge Randolph D. Moss of the US District Court for the District of Columbia wrote that Trump's January proclamation, which branded the rise in border crossings as an "invasion" and tried to create "an alternative immigration system," bypassed the protections Congress built into the US Immigration and Nationality Act. Since the proclamation would have denied humanitarian screenings to people entering between ports of entry as well as at official crossings, the court found it "fundamentally irreconcilable" with the statutory text guaranteeing anyone on US soil a chance to seek refuge, he said. He dismissed the administration's reliance on emergency powers under Section 1182(f) of the federal immigration law, saying that the provision authorizes a president to keep certain non-citizens outside the country but does not let the executive erase asylum outright. Moss's decision applied nationwide, but he delayed enforcement for 14 days to give the Justice Department time to appeal. Should the opinion stand, the government must resume processing all asylum requests filed after the proclamation took effect. Wednesday's ruling echoed earlier defeats for categorical asylum bans. In 2018 and 2020, federal courts blocked two previous Trump administration orders that sought to disqualify people who crossed the border irregularly.
Arab Times
a day ago
- Arab Times
Thailand's new Cabinet members take oaths, including suspended prime minister
BANGKOK, July 3, (AP): Thailand's new Cabinet members took their oaths of office Thursday, including the suspended prime minister who is under an ethics investigation for her remarks to a senior Cambodian leader. Paetongtarn Shinawatra was suspended as prime minister Tuesday, the same day Thailand's king endorsed a Cabinet lineup in which she would be the culture minister. Paetongtarn was smiling as she arrived at Government House for the swearing-in ceremony with other new members, but did not answer questions. Acting Prime Minister Suriya Jungrungreangkit led the new Cabinet members at the ceremony to receive the endorsement from King Maha Vajiralongkorn at the Dusit Palace. A special Cabinet meeting held after the ceremony assigned Phumtham Wechayachai to become the acting prime minister instead of Suriya. Phumtham was sworn in Thursday as deputy prime minister and interior minister. He had been deputy prime minister and defense minister since Paetongtarn took office last year. Paetongtarn has faced growing dissatisfaction over her handling of a border dispute with Cambodia, including an armed confrontation in May in which a Cambodian soldier was killed. In a leaked phone call with Cambodian Senate President Hun Sen, she attempted to defuse tensions - but instead set off a string of complaints and public protests. Critics said she went to far in appeasing Hun Sen and damaged Thailand's image and interests. The Constitutional Court voted unanimously Tuesday to review a petition accusing her of a breach of the ethics, and voted 7-2 to immediately suspend her until it issues its ruling. The court gave Paetongtarn 15 days to give evidence to support her case. It's unclear when it will rule.
