'Recession in...': Elon Musk rips into Trump's tariff war, backs impeachment in dramatic policy flip

What began as one of the most powerful friendships in Silicon Valley and Washington is unraveling in public view. 'First Buddy' Elon Musk, once a vocal supporter of US President Donald Trump, has turned sharply against the President — slamming his flagship tariffs policy and even backing calls for his impeachment.

With the 2024 election aftermath still echoing, Musk is now leveraging his clout to influence Republican policy — and potentially the party’s future.

In a stark post on X (formerly Twitter), Musk declared, “The Trump tariffs will cause a recession in the second half of this year,” marking a decisive break from his earlier stance. Previously, Musk had called for a “zero tariff situation” between the US and the EU, promoting a free trade zone just as Trump initiated a tariff push on Europe.

The Tesla CEO didn't stop at economic policy. In response to a post calling for Trump’s impeachment and suggesting Vice President JD Vance replace him, Musk replied with a single word: “Yes.”

Musk has also been on the offensive against Trump’s sprawling “big beautiful bill,” lambasting it as “disgusting” and “pork-filled.” Over the past three days, he’s used X to urge Senate Republicans to block the legislation.

Trump, for his part, expressed disappointment. “Elon and I had a great relationship. I don’t know if we will anymore,” he told reporters. He went further, accusing Musk of suffering from “Trump Derangement Syndrome” and floated ending all federal contracts with Musk’s companies, including SpaceX.

Musk escalated the spat by claiming Trump wouldn’t have won the 2024 election without his support, and that Republican control of Congress would’ve faltered without his intervention. He’s now openly discussing forming a third party, even running a poll on X, and hinting at funding primary challenges against GOP lawmakers who backed Trump’s megabill.

India-US trade talks

Meanwhile, Musk’s criticism of Trump’s tariff stance comes at a pivotal moment. India and the US are in active talks to finalise a bilateral trade agreement aimed at reducing tariffs. US Secretary of Commerce Howard Lutnick indicated that a deal might be imminent, noting both sides have found “a place that really works.”

Trump, however, has set a July 9 deadline for countries to fall in line with his tariff demands. Lutnick, while praising India, raised concerns about its tariff use. Indian Commerce Minister Piyush Goyal recently visited Washington to accelerate negotiations and stressed the goal of granting mutual market access. He also reiterated that both nations remain committed to ironing out their differences, especially in light of Trump’s proposed 50% hike on steel and aluminium tariffs.