Musk announces forming of ‘America Party’ in further break from Trump

A day after asking his followers on X whether a new U.S. political party should be created, Elon Musk said on Saturday that the "America Party is formed." (Reuters/File)
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Updated 06 July 2025
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Musk announces forming of ‘America Party’ in further break from Trump

  • ‘Today, the America Party is formed to give you back your freedom’
  • Despite Musk’s deep pockets, breaking the Republican-Democratic duopoly will be a tall order

WASHINGTON: The dispute between Republican President Donald Trump and his main campaign financier Elon Musk took another fractious turn on Saturday when the space and automotive billionaire announced the formation of a new political party, saying Trump’s “big, beautiful” tax bill would bankrupt America.

A day after asking his followers on his X platform whether a new US political party should be created, Musk declared in a post on Saturday that “Today, the America Party is formed to give you back your freedom.” “By a factor of 2 to 1, you want a new political party and you shall have it!” he wrote. The announcement from Musk comes after Trump signed his self-styled “big, beautiful” tax-cut and spending bill into law on Friday, which Musk fiercely opposed.

Musk, who became the world’s richest man thanks to his Tesla car company and his SpaceX satellite firm, spent hundreds of millions on Trump’s re-election and led the Department of Government Efficiency from the start of the president’s second term aimed at slashing government spending.

The first sign of investor dissatisfaction with Musk’s announcement followed later in the day. Investment firm Azoria Partners will postpone the listing of a Tesla exchange-traded fund, Azoria CEO James Fishback said in a post on X.

Fishback is asking Tesla’s board to clarify Musk’s political ambitions and said the new party undermines the confidence shareholders had that he would be focusing more on the company after leaving government service in May.

Musk said previously that he would start a new political party and spend money to unseat lawmakers who supported the bill. Trump earlier this week threatened to cut off the billions of dollars in subsidies that Musk’s companies receive from the federal government. Republicans have expressed concern that Musk’s on-again, off-again feud with Trump could hurt their chances to protect their majority in the 2026 midterm congressional elections.

Asked on X what was the one thing that made him go from loving Trump to attacking him, Musk said: “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

There was no immediate comment from Trump or the White House on Musk’s announcement. The feud with Trump, often described as one between the world’s richest man and the world’s most powerful, has led to several precipitous falls in Tesla’s share price. The stock soared after Trump’s November reelection and hit a high of more than $488 in December, before losing more than half of its value in April and closing last week out at $315.35. Despite Musk’s deep pockets, breaking the Republican-Democratic duopoly will be a tall order, given that it has dominated American political life for more than 160 years, while Trump’s approval ratings in polls in his second term have generally held firm above 40 percent, despite often divisive policies.


Magnitude 7.5 quake in northern Japan injures 23 people and triggers a 2-foot tsunami

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Magnitude 7.5 quake in northern Japan injures 23 people and triggers a 2-foot tsunami

  • A tsunami of up to 70 centimeters (2 feet, 4 inches) was measured in Kuji port in Iwate prefecture, just south of Aomori, and tsunami levels of up to 50 centimeters struck other coastal communities in the region, the Japan Meteorological Agency said

TOKYO: A powerful 7.5 magnitude earthquake struck off northern Japan late Monday, injuring 23 people and triggering a tsunami in Pacific coast communities, officials said. Authorities warned of possible aftershocks and an increased risk of a megaquake.
The Japanese government was still assessing damages from the tsunami and late-evening quake, which struck at about 11:15 p.m. in the Pacific Ocean, around 80 kilometers (50 miles) off the coast of Aomori, the northernmost prefecture of Japan’s main Honshu island.
“I’ve never experienced such a big shaking,” convenience store owner Nobuo Yamada told the public broadcaster NHK in the Aomori prefecture town of Hachinohe, adding that “luckily” power lines were still operating in his area.
A tsunami of up to 70 centimeters (2 feet, 4 inches) was measured in Kuji port in Iwate prefecture, just south of Aomori, and tsunami levels of up to 50 centimeters struck other coastal communities in the region, the Japan Meteorological Agency said.
The Fire and Disaster Management Agency said 23 people were injured, including one seriously. Most of them were hit by falling objects, NHK reported, adding that several people were injured in a hotel in Hachinohe and a man in Tohoku was slightly hurt when his car fell into a hole.
The meteorological agency reported the quake’s magnitude as 7.5, down from its earlier estimate of 7.6. It issued an alert for potential tsunami surges of up to 3 meters (10 feet) in some areas and later downgraded to an advisory.
Chief Cabinet Secretary Minoru Kihara urged residents to go to higher ground or seek shelter until adviseries were lifted. He said about 800 homes were without electricity, and that the Shinkansen bullet trains and some local lines were suspended in parts of the region.
Nuclear power plants in the region were conducting safety checks, Kihara said. The Nuclear Regulation Authority said about 450 liters (118 gallons) of water spilled from a spent fuel cooling area at the Rokkasho fuel reprocessing plant in Aomori, but that its water level remained within the normal range and there was no safety concern.
About 480 residents were taking shelter at the Hachinohe Air Base, and 18 defense helicopters were mobilized for a damage assessment, Defense Minister Shinjiro Koizumi said.
About 200 passengers were stranded for the night at New Chitose Airport in Hokkaido, NHK reported.
The meteorological agency issued a caution about possible aftershocks in the coming days. It said there is a slight increase in risk of a magnitude 8-level quake and possible tsunami occurring along Japan’s northeastern coast from Chiba, just east of Tokyo, to Hokkaido. The agency urged residents in 182 municipalities in the area to monitor their emergency preparedness in the coming week.
Satoshi Kato, a vice principal of a public high school in Hachinohe, told NHK that he was at home when the quake struck, and that glasses and bowls fell and smashed into shards on the floor.
Kato said he drove to the school because it was designated an evacuation center, and on the way he encountered traffic jams and car accidents as panicked people tried to flee. Nobody had yet come to the school to take shelter, he said.
Prime Minister Sanae Takaichi said in brief comments to reporters that the government set up an emergency task force to urgently assess the extent of damage. “We are putting people’s lives first and doing everything we can,” she said.
Later, she urged residents in the region to pay attention to the latest information from local municipalities. “Please be prepared so you can immediately evacuate as soon as you feel a tremor.”
The quake struck about 80 kilometers (50 miles) northeast of Hachinohe, and about 50 kilometers (30 miles) below the sea surface, the meteorological agency said.
It was just north of the Japanese coast that suffered the magnitude 9.0 quake and tsunami in 2011 that killed nearly 20,000 people and destroyed the Fukushima Daiichi nuclear power plant.
“You need to prepare, assuming that a disaster like that could happen again,” the meteorological agency’s earthquake and volcano division official Satoshi Harada said.
At 6:20 a.m. on Tuesday morning, authorities lifted all tsunami adviseries for the Pacific coastline in northern Japan, NHK said.
The US Geological Survey reported another earthquake, with a magnitude 5.1, early on Tuesday, about 122 kilometers (76 miles) south of Honcho, at a depth of 35 kilometers. No other details were immediately available.