U.S. President Donald Trump has threatened to terminate federal contracts with Elon Musk’s companies as tensions between the two prominent figures escalate over a controversial tax bill.
In a post on Truth Social, Trump wrote:
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
Musk’s aerospace firm SpaceX holds multi-billion-dollar contracts with the U.S. government, primarily through the Pentagon and NASA. Additionally, his satellite internet company Starlink is deeply embedded in federal initiatives, further entwining his business interests with government funding.
Trump’s threat poses a potentially serious blow to Musk, as the rift between them deepens. The former president’s comments followed a meeting in the Oval Office on Thursday with German Chancellor Friedrich Merz, where he expressed dismay at Musk’s public criticism of the new tax legislation.
“I’ve always liked Elon. So I was very surprised,” Trump said. “You saw the words he had for me. And while he hasn’t said anything personally bad, I’d rather he criticize me than the bill. Because the bill is incredible.”
Musk quickly fired back on social media, crediting himself with Trump’s political success in the last election.
“Without me, Trump would have lost the election. Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk posted in response to a clip of Trump’s remarks.
“Such ingratitude,” he added.
Musk officially stepped down from his government role last Friday, having led the Department of Government Efficiency, where he was tasked with cutting federal spending. His exit and the ongoing clash with Trump suggest a widening rift that could have financial and political repercussions for both parties.
