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A political clash between US President Donald Trump and tech billionaire Elon Musk has escalated sharply over government subsidies, with Trump suggesting Musk should “head back to South Africa” if federal support for companies like Tesla and SpaceX is eliminated. Musk, in turn, dared Trump to follow through, calling for all subsidies to be cut immediately.

Speaking outside the White House on Tuesday, Trump took aim at Musk, who is a naturalised US citizen born in South Africa, amid tensions over a massive government spending bill. Trump responded to Musk's vocal criticism of the bill by posting on Truth Social:“Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign.”

Trump continued, alleging Musk has benefited more from government support than any other individual in history, “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more rocket launches, satellites, or electric car production, and our country would save a FORTUNE.” He even suggested that the Department of Government Efficiency, once linked to Musk should reexamine subsidies given to his companies.

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Musk Fires Back

Elon Musk quickly responded on X, dismissing Trump’s threats and doubling down on his opposition to the spending bill. “I am literally saying CUT IT ALL. Now,” Musk tweeted, directly challenging Trump to eliminate all government funding tied to his businesses.

Musk had earlier slammed the bipartisan spending bill, calling it fiscally irresponsible and warning lawmakers, “Every member of Congress who campaigned on reducing government spending and backs the mega bill will lose their primary next year—if it’s the last thing I do on this Earth.”

He also hinted at launching a new political entity, “If this insane spending bill passes, the America Party will be formed the next day.”

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Political Fallout Brewing

The Trump-Musk feud reflects growing fractures within conservative circles, especially on fiscal issues and clean energy mandates. Musk’s companies, Tesla and SpaceX, have historically received substantial federal subsidies and contracts, particularly for clean energy initiatives and space exploration.