Musk and Trump in dispute: Is the end of a power alliance?

Musk and Trump in dispute: Is the end of a power alliance?

Washington, D.C., USA - Elon Musk and Donald Trump, once allied, are currently at the center of a public conflict. During the visit of the German Chancellor in the White House, Trump expressed his disappointment with Musk. The reason for the tensions is in Musk's sharp criticism of the tax and expenditure law planned by Trump, which Musk described as "fiskally reckless". In a reaction to the ongoing differences, a phone call between the two was agreed for Friday to clarify the relationship. Trump also called for the end of Musk's state subsidies via his Truth Social platform.

Musk, who drew attention to himself via platform X, indicated that he might want to start a new political party. The discrepancies meant that Trump's allies in the congress are increasingly unsettled. Tesla's share price, which leads Musk, fell by 14 percent, which underlines concern about the financial effects of the dispute.

The key points of the conflict

The break between Musk and Trump is due to four essential points. These include:

• Reduction of subsidies for electric vehicles in the new law.
• rejection of the extension of Musk's consultant position over 130 days.
• conflict of interest with the Federal Aviation Administration (FAA) regarding Starlink.
• Withdrawal of the nomination of Jared Isaacman as NASA boss, which was seen as a sneaker Musks.

The situation is complicated by Musk's earlier role as a influential donor for Trump's election campaign, in which he invested almost $ 300 million. This relationship could now endanger Trump's influence among tech donors and younger voters. Musk, on the other hand, may face increased exams of his business and the loss of state orders

Criticism of Trump's tax package

Musk described US President Trump's planned tax package as "hideousness". He called the citizens under pressure on the platform X to put pressure on the law. Musk's main criticisms include a planned increase in the debt limit and insufficient spending cuts. He warned that Trump's legislative proposal could lead to a higher budget deficit and called for a new draft expenditure that does not massively increase the deficit. While the budget was accepted in the House of Representatives in May in May, he encounters resistance from some Republicans in the Senate.

The reactions to Musk's resistance were mixed. Trump's spokesman in the House of Representatives, Mike Johnson, expressed that Trump was "not pleased" and indicated that Musk's motivation could assume self -in use, since the law would shorten tax relief for electric vehicles.

the half -conductor deficiency and economic framework conditions

In a broader context, current challenges in the technology area also show. Digitization has significantly increased the need for semiconductors, which affects not only smartphones, but also the automotive industry. Both the EU and the United States have launched programs to expand its semiconductor industry in order to prevent an impending semiconductor shortage. The EU Chips Act and the US Chips Act are supposed to support the construction of chip plans, such as from Intel in Magdeburg.

The dependence of the West on Asian supply chains, especially in semiconductor production, was increasingly moved into the light by the corona crisis. Political concerns about a possible Taiwan conflict that could endanger the semiconductor supply, also burden the economic situation. In order to avoid competitive disadvantages, the EU and the USA have coordinated with subsidy programs and strive for a common attitude in the area of ​​semiconductors, while export controls and sanctions to China are also central challenges.