Key Points:
- Tariff tensions: Donald Trump’s aggressive tariff policies have caused a significant rift with Elon Musk, whose businesses rely heavily on global supply chains.
- Economic impact: Musk’s net worth has plummeted by $135 billion in 2025, driven by Tesla’s 40% stock drop and rising costs across his ventures.
- Political fallout: Musk, once a staunch Trump ally, has publicly criticized the tariffs and their economic consequences, signaling cracks in their partnership.
- DOGE role uncertainty: Musk’s position as head of the Department of Government Efficiency (DOGE) remains controversial amid allegations of political favoritism.
New Delhi: The once-solid partnership between U.S. President Donald Trump and billionaire Elon Musk is showing signs of strain as their differing stances on economic policies come to light. Trump’s recent imposition of sweeping tariffs has sparked backlash from Musk, who has openly criticized the move as economically detrimental. This disagreement marks a turning point in their relationship, which has been pivotal during Trump’s second term.
Economic Fallout: Musk’s Businesses Take a Hit
Musk’s empire, which spans Tesla, SpaceX, Neuralink, and more, has been severely impacted by Trump’s tariff policies. Tesla’s stock has fallen by 40% this year, eroding Musk’s net worth by $135 billion and dropping it below the $300 billion mark for the first time since last year. SpaceX and other ventures are also grappling with rising supply chain costs and strained international partnerships.
Key Impacts on Musk’s Ventures:
- Tesla: Heavily reliant on imported materials, Tesla faces increased production costs due to tariffs on Chinese components.
- SpaceX: Supply chain disruptions threaten its ambitious Starlink expansion and global partnerships.
- Neuralink and xAI: Rising costs jeopardize R&D efforts for these cutting-edge ventures.
Musk has called for a zero-tariff agreement between the U.S. and Europe to mitigate these challenges but has yet to sway Trump’s administration.
Political Fallout: Cracks in the Trump-Musk Partnership
Musk’s public criticism of Trump’s tariffs highlights a growing divide between the two influential figures. Once a vocal supporter who contributed $290 million to pro-Trump PACs during the 2024 election cycle, Musk now finds himself at odds with the administration’s economic policies.
Key Moments in Their Relationship:
- Early Alliance: Musk took on a key role in Trump’s administration as head of DOGE, tasked with cutting government waste.
- Public Endorsements: Musk frequently praised Trump’s leadership and appeared at campaign events.
- Rising Tensions: Tariffs have become a sticking point, with Musk sharing videos advocating free trade and criticizing protectionist policies.
Despite these tensions, Trump recently described Musk as a “patriot” during a cabinet meeting but joked about Musk never asking him for favors“yet.”
DOGE Role Under Scrutiny
Musk’s leadership of DOGE (Department of Government Efficiency) has drawn criticism from both Democrats and Republicans. While he has spearheaded cost-cutting initiatives across federal programs, some accuse him of using his position to benefit his businesses. Democrats have dubbed him “President Musk,” alleging that his influence over Trump extends beyond policy advice.
Controversies Surrounding DOGE:
- Allegations of favoritism toward SpaceX in securing $15 billion in federal contracts.
- Criticism from lawmakers over potential conflicts of interest between Musk’s private ventures and public responsibilities.
Future of the Partnership
As tensions escalate, questions remain about whether this alliance can withstand growing economic and political pressures. While Musk continues to advocate for free trade policies that align with his business interests, Trump shows no signs of reversing his aggressive tariff strategy.
