Foreign
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.
“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.
Tesla shares slide as Trump hits back at Musk over spending bill
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.
Foreign
Ecuador ex-president bags five-year jail term over $76m bribery scandal
An Ecuadorian court has sentenced former President Lenin Moreno to five years in prison for accepting bribes linked to the construction of the country’s largest hydroelectric dam.
Moreno, who served as president from 2017 to 2021, was among 20 people convicted over corruption allegations surrounding the Coca Codo Sinclair hydroelectric project, which was built by Chinese company Sinohydro.
Prosecutors alleged that Sinohydro paid about $76 million in bribes, representing roughly four per cent of the project’s total cost.
Moreno, 73, denied the allegations and maintained that he never received money from the Chinese company.
Speaking after Friday’s ruling, the former president said he had never received “a single cent” from Sinohydro.
He also blamed the case on the administration of his former political ally and predecessor, Rafael Correa, whom he accused of seeking revenge after their political relationship deteriorated.
Moreno served as Correa’s vice-president between 2007 and 2013 before succeeding him as president. The two later fell out after Moreno moved away from Correa’s socialist policies and developed closer ties with the United States.
The court also sentenced Moreno’s wife and other relatives to nearly three years in prison for complicity in the corruption case.
Two former managers of the Coca Codo Sinclair power plant were also among those convicted.
Prosecutors had initially requested a six-and-a-half-year prison sentence for Moreno.
The former president has announced plans to appeal the judgment.
Foreign
Trump Signs Executive Order Renaming Lake Ontario To ‘Lake America’
US President Donald Trump has signed an executive order renaming Lake Ontario as “Lake America” for official US federal use, in the latest escalation of his dispute with Canada.
Trump signed the order on Thursday at the White House, saying the change was effective immediately. The order directs the US Department of the Interior to update federal geographic records and naming systems.
Trump justified the move by accusing Canada of treating the United States unfairly in trade and defence. He said Canada had been “ripping us off” in trade and criticised Ottawa over its relationship with Washington.
However, the order does not require Canada or international organisations to adopt the new name. Lake Ontario is shared by the US state of New York and Canada’s province of Ontario, with more than half of its surface area lying in Canadian territory.
Ontario Premier Doug Ford dismissed the move, saying the lake would continue to be known as Lake Ontario by Canadians and much of the rest of the world.
The renaming comes amid a rapidly worsening US-Canada trade dispute. Washington recently imposed 50 per cent tariffs on about $20 billion worth of Canadian goods, while Canada responded with retaliatory tariffs of its own on hundreds of US products.
The latest move echoes Trump’s decision in January 2025 to rename the Gulf of Mexico as the “Gulf of America” for US federal purposes.
Trump also suggested that further geographic name changes could be considered, joking that after a gulf and a lake, the United States might eventually rename the Atlantic or Pacific Ocean.
Canadian Prime Minister Mark Carney’s government had not immediately issued a formal response to the latest order.
The controversy has added another symbolic dimension to already strained relations between the two neighbouring countries, as both sides continue to impose tariffs and seek to protect their economies.
Foreign
US Secret Service Reacts To Iran’s Alleged Threat To Trump’s Son Life
The United States Secret Service has confirmed that it is aware of a video broadcast by Iranian state media that appears to threaten the life of Barron Trump, the youngest son of US President Donald Trump.
The nearly three-minute video, aired by the state-run Islamic Republic of Iran Broadcasting (IRIB), opens with an English-language graphic asking: “Where to kill Barron Trump?!” It then displays stylised graphics identifying places where Barron is publicly known to spend time, including Trump Tower in New York.
The video ends with a narrator referring to people being “eagerly waiting to receive our $10 million reward.”
Secret Service spokesperson Nate Herring confirmed that the agency was investigating the video as a potential threat against one of its protectees.
“The US Secret Service is aware of the video and investigates anything that can be perceived as a threat toward our protectees,” Secret Service spokesperson Nate Herring told CNN in a statement. “Out of concern for operational security, we do not discuss matters of protective intelligence.”
The apparent targeting of Barron marks a new development in a broader pattern of threats directed at Trump and members of his family by hard-line Iranian media.
Iranian media outlets have previously published material threatening President Trump and his family, while first lady Melania Trump has also been the subject of threats. However, the video appears to be the first public instance in which Barron has been specifically singled out.
A federal law enforcement source told CNN that the video forms part of a wider campaign of material from Iran targeting Trump and his family. According to the source, some of the videos have included details about movements and suggestions for killing members of the president’s family.
The security response to such threats involves continuously changing and adjusting protective arrangements, based on information gathered by the Secret Service, other US agencies, police authorities and foreign governments.
IRIB, which broadcast the video, is regarded as aligned with hard-liners within Iran’s regime, while its head is directly appointed by Iran’s supreme leader.
Trump has previously spoken publicly about threats against his life from Iran.
“I’m on whatever list… so far, I guess I’ve been a bit lucky, but maybe that doesn’t last very long. These are evil, sick people.”
He made the comments in July at the NATO summit in Turkey, before secretly leaving the country aboard an alternate military aircraft.
The departure was part of an elaborate security operation reportedly triggered by an Iranian threat. Trump boarded the aircraft while concealed inside a catering truck after officials determined that travelling on either version of Air Force One could expose him to an unacceptable level of danger.
A person familiar with the matter told CNN that the threat involved a shoulder-fired missile and was considered specific enough for officials to fear that Trump’s life would be at enormous risk if he travelled on either version of Air Force One.
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