Trump calls Musk’s formation of new party ‘ridiculous’ and confusing

U.S. President Donald Trump and Elon Musk attend a press conference in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025. (REUTERS)
Short Url
Updated 07 July 2025
Follow

Trump calls Musk’s formation of new party ‘ridiculous’ and confusing

  • Musk said his “America Party” is needed to fight the Republican/Democrat Uniparty, which he blamed for the country's worsening debt crisis
  • Trump's response: Musk unhappy with new US tax-cut and spending measure, which takes away green-energy credits for Tesla’s electric vehicles

WASHINGTON: President Donald Trump called Elon Musk’s plans to form a new political party “ridiculous,” saying Musk could have fun with his new project but that the United States functions best under a two-party system.
A day after Musk escalated his feud with Trump and announced the formation of a new US political party, the Republican president was asked about it before boarding Air Force One in Morristown, New Jersey, as he returned to Washington upon visiting his nearby golf club.
“I think it’s ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it’s always been a two-party system, and I think starting a third party just adds to confusion,” Trump told reporters. “It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it’s ridiculous.”
Musk announced on Saturday that he is establishing the “America Party” in response to Trump’s tax-cut and spending bill, which Musk said would bankrupt the country.
"What the heck was the point of @DOGE if he’s just going to increase the debt by $5 trillion??" Musk posted on his X platform.

 

 

In response, investment firm Azoria Partners, which had planned to launch a fund tied to Musk’s electric automaker Tesla , said it was delaying the venture because the party’s creation posed “a conflict with his full-time responsibilities as CEO.”
Musk, who served as a top adviser to Trump on downsizing and reshaping the federal government during the first few months of his presidency, said his new party would in next year’s midterm elections look to unseat Republican lawmakers in Congress who backed the sweeping measure known as the “big, beautiful bill.”

Speaking on the CNN program “State of the Union” on Sunday, Treasury Secretary Scott Bessent said the boards of directors at Musk’s companies — Tesla and rocket firm SpaceX — probably would prefer him to stay out of politics.
“I imagine that those boards of directors did not like this announcement yesterday (Saturday) and will be encouraging him to focus on his business activities, not his political activities,” Bessent said.
Musk spent millions of dollars underwriting Trump’s 2024 re-election effort and, for a time, regularly showed up at the president’s side in the White House Oval Office and elsewhere. Their disagreement over the spending bill led to a falling out that Musk briefly tried unsuccessfully to repair.
The bill, which cuts taxes and ramps up spending on defense and border security, passed last week on party-line votes in both chambers of Congress. Critics have said it will damage the US economy by significantly adding to the federal budget deficit.
Trump has said Musk is unhappy because the measure, which Trump signed into law on Friday, takes away green-energy credits for Tesla’s electric vehicles. The president has threatened to pull billions of dollars Tesla and SpaceX receive in government contracts and subsidies in response to Musk’s criticism.

INVESTOR REBUKE
Musk’s announcement of a new party immediately brought a rebuke from Azoria Partners, which said on Saturday it will postpone the listing of its Azoria Tesla Convexity exchange-traded fund. Azoria was set to launch the Tesla ETF this week.
Azoria CEO James Fishback posted on X several critical comments about the new party and reiterated his support for Trump.
“I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO,” Fishback said.
On Sunday, Fishback added on X, “Elon left us with no other choice.”
The Democratic Party appeared to welcome the rift between Trump and Musk.
“Trump’s MAGA party is splitting at the seams in the wake of his nightmare budget bill,” said Abhi Rahman, a spokesperson for the Democratic National Committee. “Republicans are waking up and facing the reality that they just signed their own pink slips, and are desperate for someone else to blame.”

 


Trump set to expand immigration crackdown in 2026 despite brewing backlash

Updated 7 sec ago
Follow

Trump set to expand immigration crackdown in 2026 despite brewing backlash

  • Trump plans to increase workplace raids despite political risks
  • ICE and Border Patrol to receive $170 billion funding boost
WASHINGTON: US President Donald Trump is preparing for a more aggressive immigration crackdown in 2026 with billions in new funding, including by raiding more workplaces — even as backlash builds ahead of next year’s midterm elections. Trump has already surged immigration agents into major US cities, where they swept through neighborhoods and clashed ​with residents. While federal agents this year conducted some high-profile raids on businesses, they largely avoided raiding farms, factories and other businesses that are economically important but known to employ immigrants without legal status. ICE and Border Patrol will get $170 billion in additional funds through September 2029 — a huge surge of funding over their existing annual budgets of about $19 billion after the Republican-controlled Congress passed a massive spending package in July. Administration officials say they plan to hire thousands more agents, open new detention centers, pick up more immigrants in local jails and partner with outside companies to track down people without legal status.
The expanded deportation plans come despite growing signs of political backlash ahead of next year’s midterm elections.
Miami, one of the cities most affected by Trump’s crackdown because of its large immigrant population, elected its first Democratic mayor in nearly three decades last week in what the mayor-elect said was, in part, a reaction to the president. Other local elections and polling ‌have suggested rising concern among ‌voters wary of aggressive immigration tactics. “People are beginning to see this not as an immigration question anymore ‌as ⁠much ​as it ‌is a violation of rights, a violation of due process and militarizing neighborhoods extraconstitutionally,” said Mike Madrid, a moderate Republican political strategist. “There is no question that is a problem for the president and Republicans.” Trump’s overall approval rating on immigration policy fell from 50 percent in March, before he launched crackdowns in several major US cities, to 41 percent in mid-December, for what had been his strongest issue. Rising public unease has focused on masked federal agents using aggressive tactics such as deploying tear gas in residential neighborhoods and detaining US citizens.

’NUMBERS WILL EXPLODE’
In addition to expanding enforcement actions, Trump has stripped hundreds of thousands of Haitian, Venezuelan and Afghan immigrants of temporary legal status, expanding the pool of people who could be deported as the president promises to remove 1 million immigrants each year – a goal he almost certainly will miss this year. So far, some 622,000 immigrants ⁠have been deported since Trump took office in January.
White House border czar Tom Homan told Reuters Trump had delivered on his promise of a historic deportation operation and removing criminals while shutting down illegal immigration across ‌the US-Mexico border. Homan said the number of arrests will increase sharply as ICE hires more ‍officers and expands detention capacity with the new funding.
“I think you’re going to ‍see the numbers explode greatly next year,” Homan said.
Homan said the plans “absolutely” include more enforcement actions at workplaces.
Sarah Pierce, director of social policy at the ‍center-left group Third Way, said US businesses have been reluctant to push back on Trump’s immigration crackdown in the past year but could be prompted to speak up if the focus turns to employers.
Pierce said it will be interesting to see “whether or not businesses finally stand up to this administration.”
Trump, a Republican, recaptured the White House promising record levels of deportations, saying it was needed after years of high levels of illegal immigration under his Democratic predecessor, Joe Biden. He kicked off a campaign that dispatched federal agents to ​US cities in search of possible immigration offenders, sparking protests and lawsuits over racial profiling and violent tactics.
Some businesses shut down to avoid raids or because of a lack of customers. Parents vulnerable to arrest kept their children home from school or had neighbors ⁠walk them. Some US citizens started carrying passports. Despite the focus on criminals in its public statements, government data shows that the Trump administration has been arresting more people who have not been charged with any crimes beyond their alleged immigration violations than previous administrations.
Some 41 percent of the roughly 54,000 people arrested by ICE and detained by late November had no criminal record beyond a suspected immigration violation, agency figures show. In the first few weeks in January, before Trump took office, just 6 percent of those arrested and detained by ICE were not facing charges for other crimes or previously convicted. The Trump administration has taken aim at legal immigrants as well. Agents have arrested spouses of US citizens at their green card interviews, pulled people from certain countries out of their naturalization ceremonies, moments before they were to become citizens, and revoked thousands of student visas.
PLANS TO TARGET EMPLOYERS
The administration’s planned focus on job sites in the coming year could generate many more arrests and affect the US economy and Republican-leaning business owners.
Replacing immigrants arrested during workplace raids could lead to higher labor costs, undermining Trump’s fight against inflation, which analysts expect to be a major issue in the closely watched November elections, determining control of Congress. Administration officials earlier this year exempted such businesses from enforcement on Trump’s orders, then quickly reversed, Reuters reported at the time.
Some immigration hard-liners have ‌called for more workplace enforcement.
“Eventually you’re going to have to go after these employers,” said Jessica Vaughan, policy director for the Center for Immigration Studies, which backs lower levels of immigration. “When that starts happening the employers will start cleaning up their acts on their own.”