Washington, July 06, 2025 – The Europe Today: The strained alliance between U.S. President Donald Trump and billionaire entrepreneur Elon Musk took a dramatic new turn on Saturday, as Musk announced the formation of a new political party — the “America Party” — citing deep opposition to Trump’s newly signed tax and spending bill.
The announcement came just one day after Musk polled users on his X platform (formerly Twitter) on whether the United States needed a new political party. “By a factor of 2 to 1, you want a new political party and you shall have it!” Musk declared in a post. “Today, the America Party is formed to give you back your freedom.”
The launch of the party follows Trump’s signing of what he called a “big, beautiful” tax-cut and spending bill on Friday — legislation that Musk has strongly condemned, claiming it would drive the country into bankruptcy. “Increasing the deficit from an already insane $2T under Biden to $2.5T — this will bankrupt the country,” Musk wrote, explaining his break with the Republican president.
Musk, founder of Tesla and SpaceX, had previously been one of Trump’s most prominent financial backers, pouring hundreds of millions of dollars into his re-election efforts. He also led the White House’s Department of Government Efficiency in Trump’s second term, an office aimed at cutting federal expenditures.
However, the relationship between the two powerful figures has soured over policy disagreements, particularly on fiscal matters. Tensions escalated earlier this week when Trump threatened to cut off federal subsidies to Musk’s companies in response to his public dissent.
Republican strategists have expressed concern that Musk’s political maneuvering could fracture the party’s base ahead of the 2026 midterm congressional elections, potentially jeopardizing the GOP’s majority in Congress.
In a separate post on X, Musk likened his political strategy to a famed military maneuver from ancient Greece, writing: “The way we’re going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”
As of Saturday, there has been no official response from President Trump or the White House regarding Musk’s announcement.
The ongoing feud between Trump and Musk — described by some as a power struggle between the world’s most powerful leader and the world’s richest man — has also rattled financial markets. Tesla’s stock, which soared following Trump’s re-election in November, peaked at over $488 in December but has since plunged by more than half, closing last week at $315.35.
While Musk’s immense resources and tech influence give his new party some momentum, political analysts warn that breaking the entrenched Republican-Democratic duopoly — which has defined American politics for more than 160 years — remains an uphill battle. Trump’s approval ratings continue to hover above 40 percent, even amid policy controversies and political infighting.
The emergence of the America Party adds a new dimension to the already dynamic U.S. political landscape as the country heads toward a critical midterm election cycle.
