Elon Musk Warns Trump Tariffs May Trigger Recession
Tesla loses $150 billion as Musk-Trump feud deepens with Epstein allegations and economic concerns
Musk Predicts Recession from Trump Tariffs
Elon Musk issued a stark economic warning, stating that President Donald Trump’s proposed tariffs could send the United States into a recession in the latter half of the year.
- Posting on X, Musk wrote: “The Trump tariffs will cause a recession,” marking a major public break from the president he once supported.
- This remark highlights growing concern among business leaders that protectionist policies could harm U.S. industry and consumer spending.
Market Reacts as Tesla Shares Plunge
Following Musk’s statement, Tesla stock dropped over 14% on Thursday, wiping out approximately $150 billion in market value in a single day.
- The sell-off rippled through the broader market, as investors grew uneasy over the intensifying political volatility and economic uncertainty.
- Analysts say Musk’s remarks, paired with his mounting feud with the White House, have shaken confidence in Tesla’s future political alignment and federal support.
War of Words Intensifies
President Trump responded with frustration, claiming that Musk had once supported his tax and spending bill, only to turn against it after its passage.
- “I’m very disappointed in Elon,” Trump said to reporters, alleging the CEO had praised the bill previously.
- Musk denied the accusation outright, posting: “False. This bill was never shown to me even once and was passed in the dead of night.”
- In a follow-up post, Musk added: “Without me, Trump would have lost the election… Such ingratitude,” signaling that their relationship has shifted from alliance to animosity.
Epstein Files Bombshell Escalates Feud
Tensions escalated dramatically when Musk accused Trump of being named in the still-unreleased Jeffrey Epstein files, implying that this was the real reason for their ongoing secrecy.
- Musk wrote: “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.”
- The accusation added a deeply controversial and personal dimension to their conflict, drawing global attention and outrage from Trump’s supporters.
Fallout from a Fractured Alliance
The feud is particularly shocking given Musk’s previous financial support for Trump’s 2024 campaign and his prior engagement with the administration on technology and economic issues.
- Once considered one of Trump’s most valuable private-sector allies, Musk has now become one of his most vocal critics.
- The clash could reshape donor relationships, tech-government dynamics, and the narrative heading into the next election cycle.
As political, economic, and personal battles intertwine, the Musk-Trump fallout appears to be reshaping both Wall Street sentiment and Washington strategy in real time.
