President Donald Trump has threatened to cancel billions of dollars in federal contracts and subsidies tied to Elon Musk’s companies, as tensions between the two prominent figures continue to escalate publicly.

In a post shared on Truth Social, Trump wrote:

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

The warning comes as Musk continues to criticize Trump’s latest tax bill, which he called a “disgusting abomination” earlier this week.

Musk’s company SpaceX holds several high-value contracts with the U.S. government, including deals with NASA and the Pentagon. The billionaire also has federal interests tied to Starlink, his satellite internet service, which has become increasingly integral to defense and communications infrastructure.

The potential cancellation of these contracts could have serious financial implications for Musk’s ventures, especially as their personal and political feud intensifies.

From Allies to Adversaries

Speaking to reporters in the Oval Office during a meeting with German Chancellor Friedrich Merz on Thursday, Trump expressed dismay over Musk’s recent criticisms.

“I’ve always liked Elon. I was very surprised and disappointed,” Trump said.
“You saw the words he had for me. He hasn’t said anything personally insulting, but I’d rather he criticized me than the bill. Because the bill is incredible.”

Musk, who served in Trump’s administration for four months as head of the Department of Government Efficiency (DOGE) before resigning last week, fired back on X (formerly Twitter).

“Without me, Trump would have lost the election. Dems would control the House, and the Republicans would be 51–49 in the Senate,” Musk posted in response to Trump’s comments.
“Such ingratitude.”

Musk officially stepped down from his government post last Friday after leading efforts to reduce federal spending and streamline bureaucracy. His tenure saw the elimination of thousands of federal jobs under DOGE’s cost-cutting mandate.

The clash between Trump and Musk two of the most high-profile figures in American politics and business signals a dramatic unraveling of what was once a strategic alliance. As the 2025 political and economic landscape takes shape, their public fallout may carry implications for government contracts, policy direction, and the future of U.S. innovation.