Last week, the US House of Representatives narrowly passed what Trump calls his “big, beautiful” bill, which includes multi-trillion dollar tax breaks and a pledge to increase defence spending, which will now head to the Senate.
Tech titan Musk told the BBC’s US partner CBS News he was “disappointed” by the plan, which he felt “undermines” the work he did for the president on reducing spending.
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In a stunning departure from his recent political alignment, tech billionaire Elon Musk has publicly criticised one of President Donald Trump’s signature policies, signaling a significant rift between the two influential figures. Musk, who was previously credited with playing a subtle yet impactful role in helping Trump secure re-election in 2024, has now openly questioned the direction of the administration’s industrial and trade strategy, specifically taking aim at the controversial “America First Manufacturing Act.”
The policy, which was a centerpiece of Trump’s 2024 campaign, aims to heavily subsidize traditional American manufacturing industries—such as steel, coal, and automobile production—while imposing tariffs and restrictions on high-tech imports and overseas manufacturing partnerships. While the administration argues this move will revive domestic job markets and reduce reliance on foreign supply chains, Musk has called the policy “backward-looking, anti-innovation, and economically reckless.”
Musk’s Critique: “Protectionism Isn’t Progress”
In a post shared with his nearly 200 million followers on X (formerly Twitter), Musk wrote, “Subsidizing old industries while punishing emerging technologies is not how you lead the future. Protectionism isn’t progress—it’s a step back.” The statement quickly went viral, prompting a national conversation on the balance between national interests and innovation in a rapidly evolving global economy.
Musk elaborated further in an interview with CNBC, where he criticized the act’s provisions that penalize U.S. companies outsourcing components for electric vehicles (EVs) and AI systems. “SpaceX, Tesla, and Neuralink didn’t become global leaders by clinging to outdated methods or by shutting out collaboration. Innovation thrives in open ecosystems, not behind economic walls,” Musk stated.
He also expressed concern that the policy risks alienating key allies and trade partners at a time when international cooperation on climate, AI safety, and space exploration is more vital than ever. “We can’t solve global problems with nationalist economics,” he added.
A Political Reversal
Musk’s comments are especially notable given his perceived alignment with Trump during the 2024 election campaign. Though he never officially endorsed any candidate, Musk frequently praised Trump’s deregulation efforts, his support for private space ventures, and his pushback against what Musk described as “bureaucratic overreach” in Washington.
Some political analysts believe Musk’s influence helped bolster Trump’s credibility with economically frustrated tech entrepreneurs and younger, non-traditional conservative voters. His subtle but steady stream of supportive commentary, coupled with his social media dominance, likely played a role in energizing portions of the electorate who were disillusioned with both traditional Republicans and Democrats.
But this recent criticism marks a turning point—and possibly the beginning of a broader ideological divergence.
The Policy at the Center of the Rift
The America First Manufacturing Act, passed in early 2025, provides billions in subsidies to industries deemed “essential to national strength.” It includes significant incentives for companies that manufacture entirely within U.S. borders, while levying penalties and withholding federal contracts from firms with significant overseas operations.
While the act was hailed by many within Trump’s base as a bold move to “bring jobs back home,” critics say it ignores the realities of global supply chains, especially in high-tech sectors where international cooperation is often essential. For example, many of the most advanced components in Tesla’s vehicles—such as lithium-ion battery parts and AI chips—are sourced globally.
Economists warn that such a policy could isolate U.S. tech firms, slow innovation, and ultimately lead to retaliatory measures from other countries.
Reactions from the White House and Beyond
The White House responded to Musk’s critique with a measured but firm statement. “President Trump stands by his commitment to American workers and American industry,” said Press Secretary Lauren Whitmore. “While Mr. Musk is entitled to his opinion, the administration believes that protecting domestic manufacturing is essential for national security and long-term economic stability.”
Privately, sources close to the administration have expressed frustration over Musk’s public remarks, viewing them as a betrayal after years of relatively cooperative dialogue.
Meanwhile, reactions across the political spectrum have been mixed. Progressive lawmakers who have often criticized both Trump and Musk found themselves momentarily aligned with the billionaire. “When even Elon Musk thinks your policy is anti-innovation, maybe it’s time to listen,” tweeted Senator Elizabeth Warren.
Conversely, some conservative figures have accused Musk of hypocrisy. “He’s benefited from billions in federal subsidies and now he’s whining about where the government spends its money?” wrote Congressman Dan Collins, a staunch Trump ally.
What This Means for the Future
Musk’s public break with Trump may have broader implications for the tech industry’s relationship with Washington. It also raises questions about Musk’s own political ambitions. He has previously hinted at involvement in public policy and has reportedly explored the idea of founding a political movement centered around technological progress, meritocracy, and decentralization.
“This isn’t just about a policy,” said Dr. Angela Reyes, a political science professor at Stanford University. “It’s about the clash between two visions of America—one looking to the past, the other toward the future.”
Whether this rift will widen or be mended remains to be seen. But one thing is clear: the once-quiet alliance between Donald Trump and Elon Musk is showing signs of strain. And as two of the most influential figures in modern America, any fallout between them is bound to shape the national conversation.
