Government Efficiency advisor and Tesla CEO, Elon Musk, on Thursday, Musk predicted that Trump’s tariff policy would cause a recession in the US.
“The Trump tariffs will cause a recession in the second half of this year,” Musk posted to X.
Musk’s warning comes as Canada continues to face economic uncertainty inspired in part by the escalating trade tensions with its largest trading partner, the U.S.
Trump’s tariffs include a 50 per cent rate on Canadian steel and aluminum, after doubling earlier this week.
Musk has previously clashed with Trump’s pro-tariff trade advisor Peter Navarro, calling him a “moron” publicly due to tariff impacts on Tesla.
Canadian retaliation to tariffs included a 25 per cent retaliatory measure against $30 billion worth of U.S. goods, most felt by Canadian consumers when buying select American orange juice, peanut butter, wine, beer and other retail products.
Ontario’s response, led by Premier Doug Ford, went as far as applying a 25 per cent electricity fee on exports to New York, Minnesota and Michigan, which ramped up the heat, attracting the attention of President Trump, who in response threatened further measures to pressureFord to back down.
While details continue to unfold, the main point of contention between Musk and Trump is related to Trump’s proposed “big beautiful bill,” which is projected to add trillions to the U.S. debt.
During the social media dispute, both parties mentioned items such as tariffs, Epstein files, personality traits, and more.