Trump threatens to cancel Elon Musk's govt contracts as feud turns personal

US President Donald Trump lashed out after Musk called for impeachment and claimed Trump's name was in the Epstein files, sparking the collapse of their once-close alliance

US President Donald Trump on Thursday (local time) threatened to cancel all government contracts and subsidies involving Elon Musk’s companies. The move came after Musk called for Trump’s impeachment and claimed that the former President was “in the Epstein files”, which is why they have not been released, according to media reports.

 

On his platform Truth Social, Trump wrote, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”

 

Musk–Trump fallout erupts after years of mutual support 

Once allies, Trump and Musk have publicly turned on each other. Musk, who previously led Trump’s Department of Government Efficiency (DOGE) and supported his 2024 presidential bid with nearly $300 million in donations, now accuses Trump of reckless policy and ethical violations.

 

Trump responded on Thursday after remaining silent on Musk’s earlier criticisms. “Look, Elon and I had a great relationship. I don’t know if we will anymore,” he told reporters at Oval Office, Reuters reported.

 

Criticism of Trump’s budget and tariff policies intensified feud 

In an interview with CBS, Musk slammed Trump’s ‘Big Beautiful Bill’ — a spending package he said would inflate the deficit and undo DOGE’s efforts. He also criticised the reciprocal tariffs imposed on over 100 countries in April, warning the move could push the US into recession later this year.

 

SpaceX decommission threat follows contract warning 

Following Trump’s threat, Musk hinted he could begin decommissioning SpaceX’s Dragon spacecraft — currently the only US vehicle capable of carrying astronauts to the International Space Station. His companies, including Tesla, SpaceX, and Starlink, have been instrumental in key US government programmes.

 

Their ‘bromance’ unravelled after post-election fallout 

After Musk’s strong backing in the 2024 election — which Trump won against Kamala Harris — Trump rewarded him with a temporary government role and publicly defended him during anti-Tesla protests. “Elon has never asked me for anything,” Trump once said. But tensions mounted after Musk claimed Trump could not have won without his financial and digital support.