Elon Musk Warns Trump Tariffs Will Trigger 2025 Recession
Billionaire entrepreneur Elon Musk has issued a stark warning about the economic fallout from former President Donald Trump's proposed trade tariffs, claiming they could plunge the U.S. into a recession by the second half of 2025.
Washington: Billionaire entrepreneur Elon Musk has issued a stark warning about the economic fallout from former President Donald Trump’s proposed trade tariffs, claiming they could plunge the U.S. into a recession by the second half of 2025.
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“The Trump tariffs will cause a recession in the second half of this year,” Musk wrote in a post on his social media platform, X (formerly Twitter). “If America goes broke, nothing else matters,” he added.
Tesla Stock Plummets Amid Musk-Trump Feud
The escalating tensions between Musk and Trump sent shockwaves through Wall Street, with Tesla shares dropping over 14% on Thursday. The plunge wiped out nearly $150 billion in market value, sparking investor concerns over the stability of Musk-led ventures amid political backlash.
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Trump Threatens to Terminate Musk’s Government Contracts
The financial market tremors came shortly after Trump hinted at cutting ties with Musk’s companies. “The easiest way for the government to save money would be to terminate contracts and subsidies going to Musk,” Trump stated.
In response, Musk said SpaceX would begin “decommissioning its Dragon spacecraft immediately,” signaling a potential pullback from one of NASA’s key private-sector partners.
Musk Says Trump Is “Ungrateful” Despite $250M Donation
The political spat intensified after Musk accused Trump of “ingratitude,” claiming that his $250 million in donations during the 2024 election cycle was instrumental in Trump’s win.
“Trump has 3.5 years left as President, but I will be around for 40+ years,” Musk posted, hinting at his long-term influence and plans, despite the current fallout.
Oval Office Exit: Musk Says Goodbye With Black Eye and Cryptic Message
In a recent White House appearance, Musk formally ended his advisory role in the Trump administration. Sporting a black eye — which he attributed to an accident involving his young son — Musk appeared subdued. Many interpreted the injury as a metaphor for his turbulent time in government service.
What’s Next for Musk and the U.S. Economy?
As the feud between Elon Musk and Donald Trump deepens, analysts are watching closely to assess the broader impact on markets, trade policy, and the tech sector. With Musk predicting a looming recession and Trump threatening to cut key partnerships, the fallout could reshape the political and economic landscape heading into 2026.
