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