In 2025, the differences between Trump and Musk continued to escalate, evolving from initial trade policy disputes to public insults, and even involving political positions, economic interests, and personal grudges. Here are the main points of disagreement between the two:
1. Trade Policy and Tariff Conflicts
Musk strongly opposed the "reciprocal tariff" policy introduced by the Trump administration in April 2025, which imposed a minimum 10% tariff on 185 countries worldwide, with differentiated rates of up to 54% for economies such as China and the EU. Musk argued that high tariffs would disrupt Tesla's global supply chain, increase production costs, and ultimately be passed on to consumers. He called for the establishment of a "zero-tariff free trade zone between the U.S. and Europe," but Trump firmly rejected it, stating that tariffs were a necessary means to "correct unfair trade."
2. AI Investment and Funding Disputes
In January 2025, Trump announced a $500 billion "Stargate" AI project jointly funded by SoftBank, OpenAI, and Oracle, to which Musk publicly questioned its feasibility, pointing out SoftBank's insufficient funding, OpenAI's lack of profit, and Oracle's high debt. Trump hinted that Musk's opposition stemmed from personal grievances, particularly dissatisfaction with SoftBank's Masayoshi Son.
3. Fiscal Policy and Government Subsidies
In May 2025, Musk criticized Trump's $3.8 trillion spending bill, believing it exacerbated the federal debt crisis and undermined the financial reform成果 of the DOGE (Department of Government Efficiency). Trump threatened to cancel government subsidies and contracts for Tesla, leading to a 14% single-day drop in Tesla's stock price and a market value evaporating by over $1 trillion.
4. Political Stance and Public Break
On June 5, Trump expressed being "very disappointed" with Musk, implying that their relationship soured due to the cancellation of electric vehicle subsidies. Musk retaliated by accusing Trump of being "ungrateful," even sharing calls for Trump's impeachment and proposing the establishment of a "third party representing 80% of America's middle class."
5. Personal Grudges and Market Impact
The conflicts between the two have extended beyond policy issues to personal attacks. Musk revealed connections between Trump and the Epstein case, while Trump threatened to terminate SpaceX's government contracts. This conflict not only affected Tesla's stock price but also exposed the fragility of the U.S. political-business alliance.
Currently, the White House is attempting to ease relations, but Musk has yet to respond to the call invitation, and the disagreements between the two continue to fester.
