Elon Musk Slams Trump Tariffs, Warns of Recession in 2025

Elon Musk Criticizes Trump’s Tariffs, Predicts 2025 Recession

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: June 06, 2025

Summary: Elon Musk criticized Donald Trump's tariff policies, suggesting they could push the U.S. into recession this year, intensifying their public rivalry amid a significant drop in Tesla's stock price.

Elon Musk and Donald Trump went from having private differences to full-fledged public attacks. In a post on X (previously Twitter), Musk warned that Trump's proposed tariffs might cause the US economy to enter a recession by the second half of 2025.

This warning isn't just about economics. Musk also stirred controversy by hinting at Trump’s alleged connection to the Jeffrey Epstein case, claiming that the files haven’t been released because Trump is mentioned in them. The tech billionaire’s comments sparked a storm online and drew mixed reactions.

Markets reacted quickly. Tesla’s shares tumbled over 14%, wiping out nearly $150 billion in market value. Many analysts believe investors are concerned about the political backlash Musk’s comments could invite, especially with Tesla’s exposure to regulatory and policy shifts.

Trump, on the other hand, brushed off Musk’s statements, suggesting the SpaceX CEO is frustrated about not receiving certain policy favors in a recent bill. According to Trump, Musk’s criticism is more about personal interests than national concerns.

What started as a partnership of convenience between two powerhouses has now become a very public feud, with real financial consequences and no signs of cooling down.