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Trump Declares Rift with Musk Final, Warns of “Consequences” if Tesla CEO Backs Democrats

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President Donald Trump has ruled out any reconciliation with Elon Musk, the billionaire CEO of Tesla and SpaceX, amid an escalating political feud that now threatens to strain ties between the White House and one of America’s most high-profile business leaders.

In a phone interview with NBC’s Kristen Welker on Saturday, Trump made clear that his relationship with Musk is effectively over, following a week of public clashes over the administration’s latest budget proposal. When asked whether he saw any path to mending the rift, Trump responded, “I would assume so, yeah,” referring to a permanent split.

“I’m too busy doing other things,” the president said. “You know, I won an election in a landslide. I gave him a lot of breaks in my first administration and saved his life. I have no intention of speaking to him.”

Trump also delivered a pointed warning amid reports that Musk is considering supporting Democratic candidates in the 2026 midterm elections. “If he does, he’ll have to pay the consequences for that,” the president said, declining to elaborate. Musk’s companies hold numerous federal contracts, raising questions about how this tension might affect future dealings.

The falling-out follows Musk’s public condemnation of Trump’s proposed budget bill, which he described as a “disgusting abomination” on his social media platform, X. The Congressional Budget Office has projected the bill would increase the federal deficit by $2.4 trillion over ten years while cutting taxes and leaving millions without health insurance.

Tensions escalated further on social media as Trump defended what he called his “big beautiful bill,” prompting a series of sharp exchanges. Musk later suggested Trump should be impeached and alleged — without evidence — that the administration had covered up ties to Jeffrey Epstein. Musk deleted the tweet Saturday, drawing further attention to the volatile spat.

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Vice President JD Vance attempted to cool the rhetoric in a separate interview, calling Musk “an incredible entrepreneur” but cautioning that his attacks on Trump were “a huge mistake.” Vance noted Musk’s frustration but expressed hope that reconciliation might still be possible. “Maybe that’s not possible now because he’s gone so nuclear,” Vance admitted.

Vance defended the budget bill, saying its main objective was to extend the 2017 Trump-era tax cuts, not slash spending. He praised Musk’s earlier government reform efforts, including the Department of Government Efficiency, as “really good,” despite the controversy.

As the feud continues to unfold, political observers are watching closely to see whether the rift will have broader implications for tech-industry relations with the Trump administration ahead of the midterms.

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EU Unveils Industrial Plan to Prioritise European Production and Limit Chinese Access

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The European Commission has presented a sweeping industrial strategy aimed at shielding key sectors from foreign competition and limiting China’s access to EU public funding and investment opportunities.

EU Industry Commissioner Stéphane Séjourné unveiled the Industrial Accelerator Act in Brussels on Wednesday, describing it as a response to mounting global uncertainty and what he called unfair competition. The plan introduces a “European Preference” designed to direct taxpayer-funded support toward companies producing within the bloc.

The initiative follows significant job losses across Europe’s manufacturing base. Since 2024, around 200,000 jobs have been lost in energy-intensive industries and the automotive sector. Projections suggest up to 600,000 additional losses in car manufacturing over the coming decade, as Chinese exports increase and foreign-owned plants generate limited local employment.

The strategy focuses on three strategic sectors: clean technologies, automotive manufacturing and energy-intensive industries such as aluminium, steel and cement. Under the new framework, products benefiting from EU public funding will need to meet “Made in Europe” thresholds. Electric vehicles must contain at least 70 percent EU content, with some exceptions for battery components. Aluminium and cement products will be subject to a 25 percent EU-content requirement.

Séjourné said the measures would strengthen supply chains, reduce dependencies and enhance economic security. He argued the plan would create jobs by ensuring public money supports domestic production.

The proposal has exposed divisions among member states. Nordic and Baltic countries cautioned that stricter rules could deter investment and restrict access to foreign technology. Germany advocated allowing goods from trusted trade partners to qualify under the European label, while France supported a tougher stance.

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The Commission has proposed that products from countries with reciprocal free trade agreements with the EU could be treated as EU-origin in public procurement. This would exclude China and the United States, which do not have such agreements with the bloc.

Stricter conditions are also planned for foreign direct investment exceeding €100 million in sectors including batteries, electric vehicles, solar panels and critical raw materials. Investors from countries holding 40 percent of global market share in a given sector would be required to ensure at least half of jobs go to EU workers. Additional conditions include limits on foreign ownership, joint ventures with European partners, technology transfers and commitments to research and development within the bloc.

The proposal will now move to the European Parliament and the Council for approval as debates continue over how best to balance openness with industrial protection.

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Germany Struggles to Retain EU Migrants Despite Labour Shortages

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Germany is facing growing difficulty in retaining European Union migrants, even as they remain vital to the country’s labour market, according to a new study presented by the Labour Ministry.

For years, skilled migration has helped sustain Europe’s largest economy. However, research by the EU Equal Treatment Office shows that a significant share of EU citizens leave Germany within four years of arrival. The findings raise concerns about the country’s ability to address persistent labour shortages.

“We cannot afford to lose a third of EU citizens due to poor conditions,” said Natalie Pawlik, the Federal Government Commissioner for Integration, as she presented the report in Berlin.

Although Germany continues to record annual immigration inflows of between 400,000 and 700,000 people, it also sees high levels of emigration among EU nationals. The study suggests that work and living conditions are not compelling enough to persuade many migrants to settle long term.

A separate analysis by the German Economic Institute in November 2025 found that more than 260,000 positions remained unfilled across the ten sectors facing the most acute shortages. Healthcare alone accounts for around 46,000 vacancies. Construction and public administration are also struggling to recruit qualified staff.

Valeria Quispe, an expert at the institute, said bottlenecks in healthcare are contributing to longer waiting times for appointments, while staff shortages in construction are slowing residential building projects. She noted that although the economic slowdown has eased labour pressures slightly, structural shortages persist.

EU citizens typically move to Germany for better job prospects, higher wages and legal stability. Romania is the largest source country, followed by Poland and Bulgaria. Italy, Hungary and Spain also contribute sizeable numbers of workers. Almost three quarters of recent EU immigrants have come from countries that gained full freedom of movement within the past 10 to 15 years.

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Yet immigration from several key EU countries declined in 2024. Inflows from Croatia, Poland and Bulgaria dropped sharply, and net migration from other EU states fell to just 38,735, down nearly 67 per cent from the previous year.

Interviews conducted for the study highlight why many migrants consider leaving. High living costs, bureaucratic hurdles and limited recognition of qualifications were frequently cited. Nearly 39 per cent of respondents said they did not feel comfortable in Germany, while about half reported experiencing discrimination at work.

The study concluded that stronger labour market integration, better housing access and a more welcoming environment could improve retention. Employment growth in recent years has been driven largely by non-EU nationals, according to the Federal Employment Agency, as Germany’s ageing population sees increasing numbers of baby boomers retire.

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Suspected Drone Strike Hits UK Base in Cyprus Amid Escalating Iran Conflict

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A suspected drone strike hit a British military base in Cyprus shortly after Prime Minister Keir Starmer said the United Kingdom had agreed to allow the United States to use its bases for attacks on Iran’s missiles and launch sites, marking the first apparent impact of the Iran war on European soil.

The UK Ministry of Defence said a drone struck RAF Akrotiri, a key Royal Air Force base on Cyprus’ southern coast, just after midnight on Monday. British Defence Secretary John Healey told officials that ballistic missiles had been fired toward Cyprus around the same time. He said there were no casualties.

Cyprus confirmed the incident, describing it as involving an unmanned drone that caused limited damage at the base. Government spokesperson Constantinos Letymbiotis said the event occurred shortly after midnight and that authorities were assessing the situation. He did not provide further operational details.

RAF Akrotiri is one of the UK’s most strategically important overseas bases and has played a role in regional security operations. The reported strike comes amid rising tensions following US and Israeli attacks on Iranian military targets and Tehran’s retaliatory strikes across the Gulf.

Earlier, Starmer confirmed that the UK had agreed to permit the US to use British bases for operations targeting Iran’s missile systems and launch infrastructure. The decision signaled deeper British involvement in efforts to counter Iran’s military capabilities.

European leaders condemned Iran’s recent attacks. In a joint statement, French President Emmanuel Macron and German Chancellor Friedrich Merz strongly criticised Iranian strikes on countries in the region and said they would take steps to defend their interests and those of their allies. They indicated that defensive measures could include proportionate action aimed at stopping missile and drone launches at their source.

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Iran’s foreign minister, Abbas Araghchi, suggested in a television interview that some of the country’s military units were acting independently under general pre-issued instructions. His comments came after questions about Iranian strikes on Gulf Arab nations that have previously mediated between Tehran and Western powers.

Iran has launched attacks against Qatar, which shares a major offshore gas field with the Islamic Republic and has played a diplomatic role in regional negotiations. The United Arab Emirates and Oman have also been targeted. Oman had recently served as an intermediary in nuclear discussions between Iran and the United States.

The strike on RAF Akrotiri underscores the widening scope of the conflict, with military actions now extending beyond the Middle East and into European territory linked to allied operations.

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