Could Trump’s Tariffs Spark a Recession This Year?
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Synopsis
In a dramatic turn of events, Elon Musk warns that Donald Trump's new trade tariffs could push the economy into a recession by the end of the year. This ongoing feud raises questions about its impact on the financial markets and Musk's businesses. What does this mean for the future of American commerce?
Key Takeaways
- Elon Musk warns that Trump's tariffs may lead to a recession.
- The feud has impacted Tesla's stock value significantly.
- Trump's comments included threats to terminate government contracts.
- The relationship between Musk and Trump remains turbulent and public.
- Musk emphasizes his long-term presence in the business landscape.
Washington, June 6 (NationPress) Elon Musk, the CEO of Tesla and SpaceX, expressed on Friday that the new trade tariffs imposed by Donald Trump could potentially lead to a recession by the latter half of this year.
This remark comes amid an escalating public dispute between the wealthiest individual globally and the President of the United States.
“The tariffs initiated by Trump are likely to result in a recession during the second half of this year,” Musk stated on his X platform.
“If the United States faces financial ruin, nothing else holds significance,” he added.
The clash between the two has caused ripples in the financial markets, with Tesla’s shares dropping by over 14 percent on Thursday (US time), wiping out nearly $150 billion in market capitalization.
Trump remarked that the “most straightforward method” for the government to conserve funds would be to “terminate” contracts and subsidies given to Musk, who has served as a billionaire adviser.
In response, Musk declared: “In light of the President’s intention to cancel my government contracts, SpaceX will commence the decommissioning of its Dragon spacecraft immediately.”
Trump's warning followed Musk's accusation of the President's “ingratitude,” stating that Trump would not have won the election without his support, as the billionaire contributed over $250 million to his campaign last year.
“For some perspective, Trump has 3.5 years remaining as President, but I will continue to be here for over 40 years,” Musk posted.
The deterioration of relations between the US President and the world’s richest man is unfolding much like the inception of their relationship — swiftly, intensely, and in a very public manner.
Trump conveyed his disappointment towards Musk after the billionaire criticized the President's key legislation on tax reductions and spending initiatives.
“Whatever,” Musk responded in real-time on his social media platform.
Musk bid adieu to Trump last week during a subdued news conference in the Oval Office, where he appeared with a black eye, which he attributed to his young son but seemed to symbolize his tumultuous experience in government service.
Point of View
It is crucial to observe the unfolding tensions between Elon Musk and Donald Trump with an unbiased lens. While Musk's warnings about the tariffs are significant, it is essential to consider the broader economic context and the potential ramifications for American businesses and consumers alike.
NationPress
07/06/2025
Frequently Asked Questions
What did Elon Musk say about Trump's tariffs?
Elon Musk stated that Trump's new trade tariffs could potentially lead to a recession in the latter half of the year.
How did the financial markets react to Musk's statements?
Following Musk's remarks, Tesla's stock fell by over 14 percent, resulting in a loss of nearly $150 billion in market value.
What did Trump say in response to Musk?
Trump suggested that the government could save money by terminating contracts and subsidies given to Musk.
What is the significance of Musk's warning?
Musk's warning raises concerns about the potential economic repercussions of the tariffs on American businesses and consumers.
What is the background of the feud between Musk and Trump?
The feud intensified after Musk criticized Trump's tax cuts and spending plans, leading to public exchanges on social media.
