As tensions escalate between President Donald Trump and Elon Musk, the Tesla CEO warned that Trump’s "big, beautiful bill" will trigger an economic recession. It comes as the Congressional Budget Office reports that Trump's tariffs plan would reduce the deficit but shrink the economy.

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.

Elon Musk has ramped up criticism of President Donald Trump, claiming that Trump's economic policies will lead the country into a recession and that he would not have won the 2024 presidential election if not for Musk's help.