The Daily TLDR

The very public feud between Donald Trump and Elon Musk escalated dramatically, with both men trading insults online. The White House quickly denied any plans for President Trump to speak with Musk, despite earlier speculation.

The Spark of the Spat

The conflict ignited when Trump expressed disappointment over Musk's criticism of his administration's spending bill, claiming Musk was fully aware of its details and had no prior issues. Musk vehemently refuted this, stating the bill was never shown to him. The exchange devolved into a personal mudslinging match, with Trump calling Musk 'wearing thin' and 'crazy' for his opposition, while Musk retorted that Trump's claims were 'obvious lies'.

Fatherly Predictions and Principled Stands

Elon Musk's father, Errol Musk, weighed in, confidently predicting the row would 'fizzle out'. He likened the conflict to a 'standard procedure' among powerful leaders, a 'final round of seeing who's going to be the boss'. Errol attributed the dispute to Elon's principled stance against 'bribing' lawmakers to secure votes, arguing that in order to pass the bill, Trump needs votes that require compromises Elon opposes.

Economic Forecasts and Policy Debates

Musk's prediction of a recession in the second half of the year, linked to Trump's tariffs, was a key point of contention. Economists largely agree that tariffs slow the economy, potentially halving US growth, but a full contraction remains questionable. The 'big beautiful bill' itself faces scrutiny for its 'pork' and the potential to balloon the deficit, raising concerns in international bond markets.

Political Repercussions and Influence

Political observers, like Laura Vice and Peter Mauricei, believe the feud highlights the rapid shifts within Trump's orbit. While Musk was a central figure, his criticisms are unlikely to alter Trump's core policies on tariffs or the bill's contents, as Republicans remain committed to the President's agenda. Despite Republicans on Capitol Hill being 'disappointed' by the public spat, given Musk's significant financial contributions and influence in conservative politics, it's not expected to tangibly change the legislative process.

Mauricei further noted that Musk's overall influence was already declining, as financial contributions have a limited shelf life. Ultimately, despite the drama, the consensus among experts is that Donald Trump currently holds the more powerful position, making it challenging for Musk's criticisms to shift the administration's direction.