Elon Musk warns of a recession, slams Trump's tariffs originally appeared on TheStreet .
Elon Musk has reignited his criticism of Donald Trump's trade policies, warning that the president's proposed tariffs could tip the U.S. into a recession.
Responding to Dogecoin co-creator Billy Markus — known on X as @BillyM2k — who wrote, "can I finally say that trump's tariffs are super stupid," Musk didn't hold back: "The Trump tariffs will cause a recession in the second half of this year."
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.
Critics, including economists and business leaders , have warned the sweeping tariffs could stoke inflation and strain global supply chains. Musk, who supported Trump during the 2024 campaign and briefly served as his advisor, has grown vocal against the administration's economic agenda.
Since the Trump administration introduced "Trump Liberation Day" tariffs — taxes of up to 60% on Chinese imports and a blanket 20% surcharge on others.
The White House has been hit with warnings that elevated consumer prices and shrinking exports could suck as much as 0.8% point from 2025 GDP growth.
Economists at Yale estimate the levies will cost the typical U.S. household close to $3,800 this year, sapping disposable income as credit-card delinquencies hit post-pandemic highs, as per WSJ .
During these uncertain market conditions, Bitcoin has tanked to $1,01,291.10 , as per Kraken . The asset reached a 24 hour high of $105,936.69 on June 5, however pressures between Musk and Trump has impacted the asset severely. Bitcoin has been down nearly 3.96% in the last 24 hours.
Elon Musk warns of a recession, slams Trump's tariffs first appeared on TheStreet on Jun 5, 2025
This story was originally reported by TheStreet on Jun 5, 2025, where it first appeared.
