Elon Musk warned that President Trump's trade tariffs could trigger a U.S. recession by late 2025, sparking a major conflict. This followed Musk's criticism of Trump's spending bill and accusations of ingratitude after Musk's financial support.

The Trump Liberation Day tariffs refer to a sweeping set of trade restrictions and import taxes proposed by Donald Trump after returning to office in 2025. They were part of his broader economic agenda announced on what his supporters dubbed “Trump Liberation Day” — the day marking his re-entry into the White House.

Musk’s recession prediction comes during a delicate at a time when the President’s economic agenda is the source of growing concern among executives, including JP Morgan Chase CEO Jamie Dimon, who warned last week of a “crack in the bond market” as investors get skittish about the fiscal solvency of the U.S.