Musk Launches “America Party” Amid Deepening Rift with President Trump Over Economic Policy

WASHINGTON D.C. — Billionaire entrepreneur Elon Musk announced Saturday the formation of a new U.S. political party, the “America Party,” marking a significant escalation in his public and increasingly fractious dispute with Republican President Donald Trump. The move follows Mr. Trump’s signing of his self-styled “big, beautiful” tax-cut and spending bill into law on Friday, a measure fiercely opposed by Musk.

The announcement came via a post on Mr. Musk’s X platform, just a day after he polled his followers on the need for a new U.S. political entity. “By a factor of 2 to 1, you want a new political party and you shall have it!” he wrote, declaring, “Today, the America Party is formed to give you back your freedom.”

The decision by Mr. Musk, who was a principal campaign financier for Mr. Trump’s re-election bid and led the Department of Government Efficiency in the president’s second term, underscores a dramatic deterioration in their relationship. The two have fallen out spectacularly over disagreements concerning the recently enacted tax and spending legislation.

Mr. Musk has unequivocally attributed his shift from supporting President Trump to opposing him on the burgeoning national deficit. He stated on X that the critical factor was the “Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.”

The tech mogul had previously indicated his intent to establish a new political party and financially support efforts to unseat lawmakers who backed the tax bill. In a related development earlier this week, President Trump reportedly threatened to curtail the billions of dollars in federal subsidies that Mr. Musk’s various companies receive.

The escalating feud has prompted concern among Republicans regarding the potential impact on their efforts to maintain a majority in the 2026 midterm congressional elections. Mr. Musk further elaborated on his strategic vision for the new party, referencing ancient military tactics: “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.”

There has been no immediate comment from President Trump or the White House regarding Mr. Musk’s announcement.

Despite Mr. Musk’s substantial financial resources, the task of disrupting the enduring Republican-Democratic duopoly, which has dominated American political life for over 160 years, presents a formidable challenge. President Trump’s approval ratings in his second term have generally remained above 40 percent, even amidst often divisive policy initiatives.