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Trump, Musk feud explodes with threats of cutting contracts, backing impeachment

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President Donald Trump threatened on Thursday to cut off government contracts with billionaire Elon Musk’s companies, while Musk suggested Trump should be impeached, turning their bromance into an all-out brawl on social media.

The hostilities began when Trump criticized Tesla CEO Musk in the Oval Office. Within hours, the once-close relationship had disintegrated in full public view, as the world’s most powerful man and its richest launched personal barbs at one another on Trump’s Truth Social and Musk’s X, Reuters reported.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted on Truth Social.

Wall Street traders dumped shares of Musk’s electric vehicle maker and Tesla closed down 14.3%, losing about $150 billion in market value. It was Tesla’s largest single-day decline in value in its history.

Minutes after the closing bell, Musk replied, “Yes,” to a post on X saying Trump should be impeached. Trump’s Republicans hold majorities in both chambers of Congress and are highly unlikely to impeach him.

The trouble between the two started brewing days ago, when Musk denounced Trump’s sweeping tax-cut and spending bill. The president initially held his tongue while Musk campaigned to torpedo the bill, saying it would add too much to the nation’s $36.2 trillion in debt.

Trump broke his silence on Thursday, telling reporters in the Oval Office he was “very disappointed” in Musk.

“Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said.

While Trump spoke, Musk responded with increasingly acerbic posts on X.

“Without me, Trump would have lost the election,” wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year’s election. “Such ingratitude.”

In another post, Musk asserted that Trump’s signature tariffs would push the U.S. into a recession later this year.

Besides Tesla, Musk’s businesses include rocket company and government contractor SpaceX and its satellite unit Starlink.

Musk, whose space business plays a critical role in the U.S. government’s space program, said that as a result of Trump’s threats he would begin decommissioning SpaceX’s Dragon spacecraft. Dragon is the only U.S. spacecraft currently capable of sending astronauts to the International Space Station.

Hours later, Musk appeared to reverse that move. Responding to a follower on X urging Musk and Trump to “cool off and take a step back for a couple of days,” Musk wrote: “Good advice. Ok, we won’t decommission Dragon.”

In another possible sign of de-escalation on Thursday evening, Musk separately posted, “You’re not wrong,” in response to hedge fund manager Bill Ackman saying Trump and Musk should make peace.

PUGILISTIC PAIR

The feud was not entirely unexpected. Trump and Musk are both political pugilists with sizable egos and a penchant for using social media to punch back against their perceived enemies, and many observers had predicted an eventual falling out.

Even before Musk’s departure from the administration last week, his influence had waned following a series of clashes with cabinet members over his cuts to their agencies.

For Trump, the fight was the first major rift he has had with a top adviser since taking office for a second time, after his first term was marked by numerous blow-ups.

Trump parted ways with multiple chiefs of staff, national security advisers and political strategists during his 2017-2021 White House tenure. A few, like Steve Bannon, remained in his good graces, while many others, like U.N. Ambassador John Bolton, became loud and vocal critics.

After serving as the biggest Republican donor in the 2024 campaign season, Musk became one of Trump’s most visible advisers as head of the Department of Government Efficiency, which mounted a sweeping and controversial effort to downsize the federal workforce and slash spending.

Musk was frequently present at the White House and made multiple appearances on Capitol Hill, sometimes carrying his young son.

Only six days before Thursday’s blowup, Trump and Musk held an appearance in the Oval Office where Trump praised Musk’s government service and both men promised to continue working together.

A prolonged feud between Trump and Musk could make it more difficult for Republicans to keep control of Congress in next year’s midterm elections. In addition to his campaign spending, Musk has a huge online following and helped connect Trump to parts of Silicon Valley and wealthy donors.

Musk had already said he planned to curtail his political spending in the future.

Soon after Trump’s Oval Office comments on Thursday, Musk polled his 220 million followers on X: “Is it time to create a new political party in America that actually represents the 80% in the middle?”

‘KILL THE BILL’

Musk targeted what Trump has named his “big, beautiful bill” this week, calling it a “disgusting abomination” that would deepen the federal deficit. His attacks amplified a rift within the Republican Party that could threaten the bill’s prospects in the Senate.

Nonpartisan analysts say Trump’s bill could add $2.4 trillion to $5 trillion to the nation’s $36.2 trillion in debt.

Trump asserted that Musk’s true objection was the bill’s elimination of consumer tax credits for electric vehicles. The president also suggested that Musk was upset because he missed working for the White House.

“He’s not the first,” Trump said on Thursday. “People leave my administration… then at some point they miss it so badly, and some of them embrace it and some of them actually become hostile.”

Musk wrote on X, “KILL the BILL,” adding he was fine with Trump’s planned cuts to EV credits as long as Republicans rid the bill of “mountain of disgusting pork” or wasteful spending.

He also pulled up past quotes from Trump decrying the level of federal spending, adding, “Where is this guy today?”

Musk came into government with brash plans to cut $2 trillion from the federal budget. He left last week having cut only about half of 1% of total spending while causing disruption across multiple agencies.

Musk’s increasing focus on politics provoked widespread protests at Tesla sites in the U.S. and Europe, driving down sales while investors fretted that Musk’s attention was too divided.

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Israel, Lebanon sign initial agreement after US-mediated talks

Israeli Prime Minister Benjamin Netanyahu said the agreement allows Israeli forces to continue to occupy southern Lebanon if Hezbollah does not disarm.

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Israel and Lebanon signed a framework agreement in Washington on Friday following several days of talks to secure an end to fighting between Israel and Iran-backed Hezbollahmilitants, though ‌both sides framed the deal as an initial step, Reuters reported.

Lebanese Ambassador Nada Moawad and her Israeli counterpart Yechiel Leiter signed the trilateral document with the U.S. at the State Department in Washington, providing few details.

Israeli Prime Minister Benjamin Netanyahu said the agreement allows Israeli forces to continue to occupy southern Lebanon if Hezbollah does not disarm.

“Today we’ve taken the first step in what will be a difficult journey, without a doubt, but an important and an essential ​and a necessary one,” U.S. Secretary of State Marco Rubio said before the agreement was inked.

In a later statement he said that the U.S. would facilitate the implementation of ​the deal through a trilateral “Military Coordination Group for Lebanon” and that Washington would commit significant resources, including an immediate $100 million in humanitarian assistance in ⁠coordination with the U.N.

Rubio added that the U.S. reaffirmed its intent to improve the capabilities of the Lebanese Armed Forces “to more effectively establish sovereignty throughout Lebanese territory” with more than $30 million in funds ​under existing U.S. authorities and appropriations.

The conflict between Israel and Hezbollah broke out when the armed group fired at Israel on March 2, days after the U.S. and Israel attacked Iran. The Hezbollah ​attacks triggered Israeli air and ground attacks that have killed more than 4,000 people in Lebanon and displaced more than a million.

Lebanon’s Moawad also called it a “first step” on the road to restoring Lebanese sovereignty.

“Iran is out, Hezbollah is out, and the road to peace between Israel and Lebanon is in,” Leiter said.

Netanyahu said in a statement that the deal would also allow the Lebanese army “to begin organizing to take control of territory,” starting with ​what he described as two “pilot zones” from which Israeli troops would withdraw from land they occupied during the war.

Israel describes that territory as a “security zone” or “buffer zone” where its troops can thwart ​Hezbollah attacks on northern Israel.

Lebanese President Joseph Aoun said the agreement should allow Lebanese to return to “fully liberated” land and rebuilt homes with “no partner” in its sovereignty.

Israel’s death toll from this round of hostilities with Hezbollah ‌includes at least ⁠32 soldiers and four Israeli civilians. Hezbollah does not release figures on its war dead. Reuters reported on May 4 that several thousand Hezbollah fighters had been killed in the war.

A State Department official told Reuters on Thursday that Israel had agreed to pull back from some of the territory it has occupied, something Israeli and Lebanese officials denied.

Before the talks resumed this week, Israel and Hezbollah agreed to halt fire even as Israel kept troops in southern Lebanon.

Violence has persisted since the ceasefire, with Israel saying on Friday its troops had struck and killed what the military described as seven ​Hezbollah members who were operating near the territory ​it is occupying. Reuters could not confirm ⁠this.

“To the degree that the Lebanese army performs in dismantling and disarming Hezbollah, we will proceed with additional pilot zones and the ultimate determination of an internationally recognized, secure, and agreed upon border,” Leiter told reporters after the signing.

Hezbollah lawmaker Hassan Fadlallah said Lebanese authorities would not be ​able to enforce the agreement unless, with U.S. support, “they go to civil war,” pro-Iranian broadcaster Al Mayadeen reported, read the report.

Hezbollah would confront any measure taken ​by Lebanese authorities and ⁠would hold on to its weapons even more, adding that the group’s opposition was “serious” and would not allow authorities to implement their commitments on the ground, Fadlallah said.

Israeli forces dropped leaflets over the southern Lebanese town of Mansouri on Friday ordering residents to leave, Lebanese state media reported, the first such order issued since the latest ceasefire between Israel and Hezbollah took effect.

A senior Lebanese military ⁠official said Israel ​had recently added Mansouri to its occupation zone. The official said Lebanese farmers had continued to enter and leave ​the town, but had not been living there.

An Israeli military spokesperson said the military issued what it described as a “reminder” to the civilian population that “the area is within the security zone in which (Israeli) soldiers operate. It’s a reminder not to be ​in the area so they won’t be harmed.”

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Venezuela earthquake death toll rises to 188 as rescue efforts continue

According to officials, 138 aftershocks have been recorded since the twin 7.2- and 7.5-magnitude earthquakes struck late Wednesday, causing widespread destruction.

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The death toll from the powerful earthquakes that struck Venezuela’s northern Caribbean coast has risen to 188, authorities confirmed on Thursday, as emergency crews continue search and rescue operations.

Jorge Rodriguez, President of Venezuela’s National Assembly, said 1,520 people have been hospitalized with injuries, while 157 people remain missing. Rescue teams are still searching for more than 200 people believed to be trapped beneath collapsed buildings.

According to officials, 138 aftershocks have been recorded since the twin 7.2- and 7.5-magnitude earthquakes struck late Wednesday, causing widespread destruction.

Rodriguez said 346 infrastructure sites sustained damage, including 250 buildings, 20 shopping centers, and eight hospitals, forcing authorities to transfer patients to other medical facilities.

The Venezuelan government has announced the establishment of a $200 million emergency reconstruction fund to support the rebuilding of damaged homes, hospitals, and other critical infrastructure.

Following the disaster, Acting President Delcy Rodriguez declared a national state of emergency, while tsunami warnings were issued across parts of the Caribbean region after the powerful earthquakes.

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Rescue work underway after quakes rock Venezuela, ‘high casualties’ likely

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Strong earthquakes struck west of Venezuela’s capital on Wednesday afternoon, toppling buildings in Caracas, trapping people in the rubble and prompting scientists to warn of potentially heavy casualties and widespread destruction across the ​South American country.

A magnitude 7.2 earthquake hit about 160 km (100 miles) west of Caracas, followed less than a minute later by a magnitude 7.5 tremor, according to the U.S. Geological Survey (USGS), Reuters reported.

“High casualties ‌and extensive damage are probable and the disaster is likely widespread,” the USGS said, initially estimating the death toll would most likely range from 10,000 to 100,000.

Interim President Delcy Rodriguez said she would declare a state of emergency and request funds from multilateral organizations to back the recovery effort.

“We extend our condolences to those who have unfortunately suffered the loss of a family member,” she said in a national address, without giving a national count for deaths or injuries.

Local officials and witnesses reported collapsed buildings, rescues and a growing ​number of injured.

“We have buildings, homes and houses which have collapsed and we are taking care of things with everything we have available in terms of security, civil assistance,” Interior Minister Diosdado Cabello said ​earlier on state television.

Video footage showed emergency workers climbing through the ruins of a collapsed building in the capital as night fell, while distraught relatives sought help for ⁠loved ones believed to be trapped.

Gustavo Duque, the mayor of the Chacao municipality in Caracas, said several buildings collapsed, and 18 survivors were extracted from one building alone. He urged onlookers to seek shelter and aid at public ​plazas because there could be aftershocks.

“We’re going to do everything we can to rescue the most people possible,” he said.

Twenty-two people were injured in the coastal state of Falcon, Governor Victor Clark said on state television. Fifteen missing people, ​all adults, were still being searched for.

RESIDENTS RUSH INTO THE STREETS

Many Venezuelans were at home when the quakes struck during a public holiday marking an 1821 military victory that helped secure the country’s independence from Spain.

“As soon as it started, we began hearing people screaming,” said Astrid Ramirez, a 41-year-old publicist in western Caracas. “Everyone was running down the stairs.”

Residents across Caracas, which was also hit by a deadly magnitude 6.3 earthquake in 1967, rushed to evacuate as buildings shook.

“There was a very loud crash. Things fell in ​the house, jugs inside the refrigerator. I’ve never experienced anything like it,” said Coro Martinez, 56, who lives in eastern Caracas.

Item 1 of 10 Emergency services work at the site of a collapsed building after an earthquake, in Caracas, Venezuela, June 24. REUTERS/Gaby Oraa

Maria Romero, an 80-year-old pensioner in southern Caracas, said police helped her get out of her home. “This earthquake ​was horrible, even worse than the one in 1967,” she said.

Another resident, a 41-year-old office worker who declined to be named, said she received an earthquake alert on her phone just before the shaking intensified.

“As I picked it up and started listening ‌to what it ⁠was saying, I first felt light shaking. Then, in less than two seconds, everything started moving.”

Rodriguez has been running the country since the U.S. ouster of President Nicolas Maduro in January. She has hailed a new era of cooperation with the U.S. and other countries, especially on oil, mining and other industries.

The U.S. embassy in Caracas said it was closely monitoring the aftermath of the quake and urged citizens in the country to seek secure shelter and avoid damaged areas.

HOSPITALS BRACE FOR THE INJURED

Fire trucks were seen on the streets of Caracas, where some buildings suffered significant facade damage.

At Caracas’ Hospital de Clinicas, staff were asked to double up on the night shift to help treat the ​injured, a worker there said.

Venezuela’s largest airport, in Maiquetia ​on the coast north of Caracas, was closed ⁠due to damages, Rodriguez said.

Classes were cancelled for the rest of the week as authorities began to take stock of the damage.

Venezuela’s oil infrastructure did not immediately appear to be affected by the tremors, as almost none of the cities with official reports of severe damage include critical oil infrastructure. Civil protection authorities in Maracaibo, near the large ​oil hub of Lake Maracaibo, said there were no injuries reported.

Many energy companies with operations in the country were accounting for staff before making initial assessments on ​the condition of oilfields, plants and ⁠refineries.

One source noted that extended loss of power could hit crude output levels until the service is restored. Venezuela’s oil ministry, state-run oil company PDVSA (PDVSA.UL) and its main foreign partner, Chevron did not immediately reply to requests for comment.

TSUNAMI ALERT WITHDRAWN

The U.S. Tsunami Warning System issued a tsunami threat for Puerto Rico and the U.S. and British Virgin Islands after the earthquake, and said hazardous waves could also affect Aruba, Curacao and Bonaire. The warning was withdrawn about an hour later.

Venezuela ⁠lies in a ​seismically active zone where the Caribbean Plate meets the South American Plate.

An estimated 30,000 people were killed when a powerful quake caused widespread ​destruction in the cities of Merida and Caracas in 1812, according to the USGS.

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