- Wednesday, July 16, 2025
By: Vibhuti Pathak
In a surprising turn in their ongoing public feud, Elon Musk has publicly praised President Donald Trump for his efforts in brokering a 60-day ceasefire in Gaza. Sharing Trump’s Truth Social post announcing Israel’s agreement to the ceasefire, Musk wrote, “Credit where credit is due,” and credited the US President for “successfully resolving several serious conflicts around the world”.
The acknowledgment comes just one day after Trump threatened to “shut shop” on Musk’s businesses and suggested the possibility of deporting the billionaire over his criticism of Trump’s sweeping tax and spending bill.
Credit where credit is due. @realDonaldTrump has successfully resolved several serious conflicts around the world. pic.twitter.com/0EyHHy5Gfo
— Elon Musk (@elonmusk) July 2, 2025
Feud Centers on Tax Bill and EV Subsidies
At the heart of the Trump-Musk clash is the president’s “Big, Beautiful Bill,” a massive tax-cut and spending package that recently passed the Senate. The bill would end the popular $7,500 consumer tax credit for electric vehicles—a move that would make EVs more expensive and directly impact Tesla, the company Musk leads.
Musk has been a vocal critic of the legislation, calling it an “insane spending bill” and threatening to launch a new political party, the “America Party,” if the bill becomes law.
Trump, in response, accused Musk of being motivated by the potential loss of government subsidies and contracts for his companies, including Tesla and SpaceX.
“Elon may get more subsidies than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump said, referencing Musk’s immigrant background.
Deportation Threats and Political Escalation
The feud escalated when Trump, asked by reporters if he would consider deporting Musk, replied, “We’ll have to take a look.” He further suggested that the Department of Government Efficiency (DOGE), which Musk once led, could review all federal subsidies and contracts awarded to Musk’s companies. “We might have to put DOGE on Elon.
DOGE is the monster that might have to go back and eat Elon,” Trump remarked, signaling a willingness to use federal power against the billionaire.
Musk, for his part, hinted at escalating the dispute but ultimately held back, posting on X, “So tempting to escalate this. So, so tempting. But I will refrain for now”.
Political Fallout and Shifting Dynamics
The spat between Trump and Musk is notable given their recent political alliance. Musk was a major donor to Trump’s 2024 campaign and served as head of the Department of Government Efficiency before stepping down in May.
Their relationship soured as Musk’s criticism of the tax bill intensified, with Musk vowing to target Republican lawmakers who support the legislation and threatening to form a new political party.
Despite the tensions, Musk’s recent praise for Trump’s diplomatic achievements suggests a potential thaw, or at least a willingness to separate policy disagreements from recognition of global conflict resolution efforts. The episode underscores the volatile intersection of business, politics, and personal rivalry at the highest levels of American power.
Senate Passes Contentious Bill
Meanwhile, the Senate narrowly passed Trump’s tax-cut and spending bill, which slashes taxes, reduces social safety net programs, and boosts military and immigration enforcement spending, while adding $3.3 trillion to the national debt. The bill’s fate in the House remains uncertain amid ongoing political drama and public scrutiny.
