Elon Musk says Trump's economic plans could cause 'temporary hardship'

Elon Musk, nan world’s richest person, has vaulted to nan forefront of nan statesmanlike run arsenic a apical philanthropist and impassioned speaker successful support of erstwhile President Donald Trump.

Still, Musk has said successful caller days that nan candidate’s economical plans could origin financial pain, astatine slightest successful nan short term.

Among those proposals is nan imaginable statement of a caller “government ratio commission” to beryllium led by Musk. The group would scrutinize national spending and slash programs deemed wasteful.

Speaking connected a telephone municipality hallway connected Friday, Musk said spending cuts imposed by nan committee would “necessarily impact immoderate impermanent hardship.” Ultimately, Musk added, nan cost-cutting would “ensure semipermanent prosperity.”

“We person to trim spending to unrecorded wrong our means,” Musk said.

Offering up different cautionary note, Musk voiced statement pinch a post connected X connected Tuesday that warned of dire economical fallout if Trump wins nan predetermination and implements immoderate of his cardinal schedule items.

“If Trump succeeds successful forcing done wide deportations, mixed pinch Elon hacking distant astatine nan government, firing group and reducing nan shortage - location will beryllium an first terrible overreaction successful nan economy,” an anonymous personification posted connected X.

“Market will tumble. But erstwhile nan large wind passes and everyone realizes we are connected sounder footing, location will beryllium a accelerated betterment to a healthier, sustainable economy,” nan station added.

In reply, Musk said, “Sounds astir right.”

ABC News contacted Musk-owned companies, Tesla and SpaceX, successful an effort to scope Musk for comment. He did not instantly respond. America PAC did not instantly respond to a petition for comment.

In consequence to ABC News' petition for comment, nan Trump run praised Musk, saying he is uniquely equipped to thief amended authorities efficiency.

“As President Trump has said, Elon Musk is simply a genius, an innovator, and has virtually made history by building creative, modern, and businesslike systems. Elon Musk has dedicated himself to America’s early by offering to service pinch President Trump to guarantee our authorities useful much efficiently and uses America’s payer dollars effectively," Brian Hughes, a elder advisor to nan Trump campaign, told ABC News.

"The committee will yet beryllium staffed and dedicated to this mission, and President Trump is committed to having Mr. Musk lead this committee to analyse nan functionality of our government," Hughes added.

On nan run trail, Trump has vowed to slap tariffs of up to 20% connected each imported equipment and deport millions of undocumented immigrants. Economists wide view those proposals arsenic apt to thrust up user prices, since companies typically walk on nan costs of taxes and costs increases to customers.

Trump has besides floated nan conception of eliminating nan individual income taxation for each Americans. The U.S. would salary for nan mislaid taxation gross pinch far-reaching tariffs, Trump told Joe Rogan past week.

Elon Musk speaks during a run rally for Republican statesmanlike nominee, erstwhile U.S. President Donald Trump astatine Madison Square Garden connected October 27, 2024 successful New York City.

Anna Moneymaker/Getty Images

The individual income taxation presently accounts for astir half of nan $5 trillion successful gross that nan national authorities brings successful each year. It would beryllium each but intolerable to dress up for nan mislaid gross pinch accrued tariffs, experts previously told ABC News.

Last year, nan U.S. imported astir $3.8 trillion worthy of goods, nan U.S. Bureau of Economic Analysis found. To make nan aforesaid magnitude of gross presently brought successful by nan individual income tax, a tariff would person needed to beryllium group astatine astir 70%, said Alan Auerbach, a rule professor astatine nan University of California, Berkeley.

However, a tariff of specified magnitude would importantly trim U.S. trade, slashing nan full magnitude of imported equipment and, successful turn, reducing taxation revenue.

Musk, who leads Tesla and SpaceX, has taken an progressive domiciled arsenic some a ample philanthropist and vocal proponent backing Trump.

Musk donated astir $75 cardinal to a pro-Trump Super PAC complete a three-month play ending successful September, according to disclosures revenge to nan Federal Election Commission. Musk, who owns X, often posts messages successful support of Trump connected nan societal media platform, wherever he boasts much than 202 cardinal followers.

The U.S. nationalist indebtedness presently stands astatine astir $35 trillion. President Joe Biden has added to nan nationalist indebtedness complete nan people of his word successful office, conscionable arsenic Trump did.

Vice President Kamala Harris’ economical plans would summation superior deficits by $1.2 trillion complete nan adjacent 10 years, according to a fund exemplary created by nan University of Pennsylvania’s Wharton School of Business. The plans put guardant by Trump, meanwhile, would summation superior deficits by $5.8 trillion complete that period, nan exemplary found.

Speaking connected a telephone municipality hallway connected Friday, Musk vowed to intimately analyse nan national fund if appointed caput of a imaginable “government ratio commission.”

The domiciled intends “looking astatine each statement item, each expense, and saying is this basal astatine all?” Musk said.