Musk: Trump Tariffs & Recession Risk – 2024 Forecast
Elon Musk and Donald Trump are embroiled in a heated public spat, with the tech titan forecasting a recession linked to Trump’s proposed tariffs. This clash marks a notable escalation, as Musk openly criticizes the former president’s economic policies, highlighting potential negative impacts. The feud began after Musk denounced Trump’s economic plan, leading to a series of acrimonious exchanges. Experts, alongside Musk, are sounding the alarm, underscoring the risks associated with these tariffs. News Directory 3 covers the developing story. What additional economic repercussions lie ahead in this evolving conflict? Discover what’s next …
Musk, Trump Feud Over Tariffs and potential Recession
Updated June 06, 2025
Elon Musk and Donald Trump engaged in a public disagreement Thursday, with Musk forecasting that Trump’s tariffs would trigger a recession. The tech mogul’s prediction was just one salvo in a series of criticisms leveled at the former president as their relationship deteriorated.
“The Trump tariffs will cause a recession in the second half of this year,” Musk posted on X,formerly twitter,while sharing a tweet that described the tariffs as “super stupid.”
The exchange followed Trump’s expression of disappointment in Musk’s opposition to his economic plan during a White House appearance with the German Chancellor.
Musk responded by accusing Trump of “ingratitude” and floated the idea of creating a new political party. He also suggested decommissioning SpaceX’s dragon spacecraft after trump threatened to cut government contracts, a proposal Musk quickly retracted.
Tensions between the two have been simmering since Musk stepped down from his advisory role at the White House. Earlier in the week,Musk condemned the Republican tax-and-spending-cut bill,championed by Trump,as “pork-filled” and a “disgusting abomination.”
Musk is not alone in his assessment of the bill’s potential economic consequences. The nonpartisan Congressional Budget Office has estimated that the legislation could increase the national deficit by $2.4 trillion over the next decade.
Other economists share Musk’s concerns about the potential adverse effects of Trump’s tariffs on the U.S. economy.
JPMorgan previously estimated a 60% chance of a U.S. recession following Trump’s imposition of sweeping tariffs on April 2.However,the bank recently revised that probability to below 50% after Trump temporarily suspended some of the highest tariffs.
In a March interview with Fox News, Trump acknowledged the possibility of a recession.
“I hate to predict things like that,” trump said.
“There is a period of transition,” he added. “As what we’re doing is very big.We’re bringing back wealth to America. That’s a big thing, and there are always periods of, it takes a little time.”
What’s next
The ongoing debate surrounding tariffs and their potential impact on the economy is likely to continue as policymakers and economists weigh the potential benefits and risks of various trade policies.