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Musk says he's forming a new political party after split with Trump over tax cuts law

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Musk says he's forming a new political party after split with Trump over tax cuts law
News

News

Musk says he's forming a new political party after split with Trump over tax cuts law

2025-07-07 08:26 Last Updated At:08:31

BRIDGEWATER, N.J. (AP) — Elon Musk said he’s carrying out his threat to form a new political party after his fissure with President Donald Trump, announcing the America Party in response to the president’s sweeping tax cuts law.

Musk, once an ever-present ally to Trump as he headed up the slashing agency known as the Department of Government Efficiency, broke with the Republican president over his signature legislation, which was signed into law Friday.

As the bill made its way through Congress, Musk threatened to form the “America Party” if “this insane spending bill passes.”

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk said Saturday on X, the social media company he owns. “Today, the America Party is formed to give you back your freedom.”

Asked about the effort by reporters on Sunday afternoon as he prepared to return to Washington from his home in New Jersey, Trump called Musk's proposition “ridiculous,” going on to tout "tremendous success with the Republican Party.”

“The Democrats have lost their way, but it’s always been a two-party system,” Trump added. “And I think starting a third party just adds to confusion. It really seems to have been developed for two parties." Third parties, Trump said, have never worked.

The formation of new political parties is not uncommon, but they typically struggle to pull any significant support away from the Republican and Democratic parties. But Musk, the world's richest man who spent at least $250 million supporting Trump in the 2024 election, could impact the 2026 elections determining control of Congress if he is willing to spend significant amounts of money.

His reignited feud with the president could also be costly for Musk, whose businesses rely on billions of dollars in government contracts and publicly traded company Tesla has taken a hit in the market.

It wasn’t clear whether Musk had taken steps to formally create the new political party. Spokespeople for Musk and his political action committee, America PAC, didn't immediately comment Sunday.

As of Sunday morning, there were multiple political parties listed in the Federal Election Commission database that had been formed in the hours since Musk’s Saturday X post with versions of “America Party” of “DOGE” or “X” in the name, or Musk listed among people affiliated with the entity.

But none appeared to be authentic, listing contacts for the organization as email addresses such as ” wentsnowboarding@yahoo.com ″ or untraceable Protonmail addresses.

Musk on Sunday spent the morning on X taking feedback from users about the party and indicated he'd use the party to get involved in the 2026 midterm elections.

Last month, he threatened to try to oust every member of Congress that voted for Trump's bill. Musk had called the tax breaks and spending cuts package a “disgusting abomination," warning it would increase the federal deficit, among other critiques.

“The Republican Party has a clean sweep of the executive, legislative and judicial branches and STILL had the nerve to massively increase the size of government, expanding the national debt by a record FIVE TRILLION DOLLARS,” Musk said Sunday on X.

His critiques of the bill and move to form a political party mark a reversal from May, when his time in the White House was winding down and the head of rocket company SpaceX and electric vehicle maker Tesla said he would spend “a lot less” on politics in the future.

Treasury Secretary Scott Bessent, who clashed with Musk while he ran DOGE, said on CNN's "State of the Union" on Sunday that DOGE's “principles” were popular but “if you look at the polling, Elon was not.”

“I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,” he said.

Associated Press writer Meg Kinnard in Chapin, South Carolina, contributed to this report.

President Donald Trump, left, speaks with reporters as Commerce Secretary Howard Lutnick listens before boarding Air Force One at Morristown Municipal Airport in Morristown, N.J., Sunday, July 6, 2025, en route to Washington. (AP Photo/Jacquelyn Martin)

President Donald Trump, left, speaks with reporters as Commerce Secretary Howard Lutnick listens before boarding Air Force One at Morristown Municipal Airport in Morristown, N.J., Sunday, July 6, 2025, en route to Washington. (AP Photo/Jacquelyn Martin)

President Donald Trump gestures as he boards Air Force One at Morristown Municipal Airport in Morristown, N.J., Sunday, July 6, 2025, en route to Washington. (AP Photo/Jacquelyn Martin)

President Donald Trump gestures as he boards Air Force One at Morristown Municipal Airport in Morristown, N.J., Sunday, July 6, 2025, en route to Washington. (AP Photo/Jacquelyn Martin)

FILE - President Donald Trump, right, speaks during a news conference with Elon Musk in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci, File)

FILE - President Donald Trump, right, speaks during a news conference with Elon Musk in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci, File)

U.S. President Donald Trump says Iran has proposed negotiations after his threat to strike the Islamic Republic as an ongoing crackdown on demonstrators has led to hundreds of deaths.

Trump said late Sunday that his administration was in talks to set up a meeting with Tehran, but cautioned that he may have to act first as reports mount of increasing deaths and the government continues to arrest protesters.

“The meeting is being set up, but we may have to act because of what’s happening before the meeting. But a meeting is being set up. Iran called, they want to negotiate,” Trump told reporters on Air Force One on Sunday night.

Iran did not acknowledge Trump’s comments immediately. It has previously warned the U.S. military and Israel would be “legitimate targets” if America uses force to protect demonstrators.

The U.S.-based Human Rights Activists News Agency, which has accurately reported on past unrest in Iran, gave the death toll. It relies on supporters in Iran cross checking information. It said at least 544 people have been killed so far, including 496 protesters and 48 people from the security forces. It said more than 10,600 people also have been detained over the two weeks of protests.

With the internet down in Iran and phone lines cut off, gauging the demonstrations from abroad has grown more difficult. Iran’s government has not offered overall casualty figures.

The Latest:

A witness told the AP that the streets of Tehran empty at the sunset call to prayers each night.

Part of that stems from the fear of getting caught in the crackdown. Police sent the public a text message that warned: “Given the presence of terrorist groups and armed individuals in some gatherings last night and their plans to cause death, and the firm decision to not tolerate any appeasement and to deal decisively with the rioters, families are strongly advised to take care of their youth and teenagers.”

Another text, addressed “Dear parents,” which claimed to come from the intelligence arm of the paramilitary Revolutionary Guard, also directly warned people not to take part in demonstrations.

The witness spoke to the AP on condition of anonymity due to the ongoing crackdown.

—- By Jon Gambrell in Dubai, United Arab Emirates

Iran drew tens of thousands of pro-government demonstrators to the streets Monday in a show of power after nationwide protests challenging the country’s theocracy.

Iranian state television showed images of demonstrators thronging Tehran toward Enghelab Square in the capital.

It called the demonstration an “Iranian uprising against American-Zionist terrorism,” without addressing the underlying anger in the country over the nation’s ailing economy. That sparked the protests over two weeks ago.

State television aired images of such demonstrations around the country, trying to signal it had overcome the protests, as claimed by Iranian Foreign Minister Abbas Araghchi earlier in the day.

China says it opposes the use of force in international relations and expressed hope the Iranian government and people are “able to overcome the current difficulties and maintain national stability.”

Chinese Foreign Ministry spokesperson Mao Ning said Monday that Beijing “always opposes interference in other countries’ internal affairs, maintains that the sovereignty and security of all countries should be fully protected under international law, and opposes the use or threat of use of force in international relations.”

German Chancellor Friedrich Merz condemned “in the strongest terms the violence that the leadership in Iran is directing against its own people.”

He said it was a sign of weakness rather than strength, adding that “this violence must end.”

Merz said during a visit to India that the demonstrators deserve “the greatest respect” for the courage with which “they are resisting the disproportional, brutal violence of Iranian security forces.”

He said: “I call on the Iranian leadership to protect its population rather than threatening it.”

Iran’s Foreign Ministry spokesman on Monday suggested that a channel remained open with the United States.

Esmail Baghaei made the comment during a news conference in Tehran.

“It is open and whenever needed, through that channel, the necessary messages are exchanged,” he said.

However, Baghaei said such talks needed to be “based on the acceptance of mutual interests and concerns, not a negotiation that is one-sided, unilateral and based on dictation.”

The semiofficial Fars news agency in Iran, which is close to the paramilitary Revolutionary Guard, on Monday began calling out Iranian celebrities and leaders on social media who have expressed support for the protests over the past two weeks, especially before the internet was shut down.

The threat comes as writers and other cultural leaders were targeted even before protests. The news agency highlighted specific celebrities who posted in solidarity with the protesters and scolded them for not condemning vandalism and destruction to public property or the deaths of security forces killed during clashes. The news agency accused those celebrities and leaders of inciting riots by expressing their support.

Canada said it “stands with the brave people of Iran” in a statement on social media that strongly condemned the killing of protesters during widespread protests that have rocked the country over the past two weeks.

“The Iranian regime must halt its horrific repression and intimidation and respect the human rights of its citizens,” Canada’s government said on Monday.

Iran’s foreign minister claimed Monday that “the situation has come under total control” after a bloody crackdown on nationwide protests in the country.

Abbas Araghchi offered no evidence for his claim.

Araghchi spoke to foreign diplomats in Tehran. The Qatar-funded Al Jazeera satellite news network, which has been allowed to work despite the internet being cut off in the country, carried his remarks.

Iran’s foreign minister alleged Monday that nationwide protests in his nation “turned violent and bloody to give an excuse” for U.S. President Donald Trump to intervene.

Abbas Araghchi offered no evidence for his claim, which comes after over 500 have been reported killed by activists -- the vast majority coming from demonstrators.

Araghchi spoke to foreign diplomats in Tehran. The Qatar-funded Al Jazeera satellite news network, which has been allowed to work despite the internet being cut off in the country, carried his remarks.

Iran has summoned the British ambassador over protesters twice taking down the Iranian flag at their embassy in London.

Iranian state television also said Monday that it complained about “certain terrorist organization that, under the guise of media, spread lies and promote violence and terrorism.” The United Kingdom is home to offices of the BBC’s Persian service and Iran International, both which long have been targeted by Iran.

A huge crowd of demonstrators, some waving the flag of Iran, gathered Sunday afternoon along Veteran Avenue in LA’s Westwood neighborhood to protest against the Iranian government. Police eventually issued a dispersal order, and by early evening only about a hundred protesters were still in the area, ABC7 reported.

Los Angeles is home to the largest Iranian community outside of Iran.

Los Angeles police responded Sunday after somebody drove a U-Haul box truck down a street crowded with the the demonstrators, causing protesters to scramble out of the way and then run after the speeding vehicle to try to attack the driver. A police statement said one person was hit by the truck but nobody was seriously hurt.

The driver, a man who was not identified, was detained “pending further investigation,” police said in a statement Sunday evening.

Shiite Muslims hold placards and chant slogans during a protest against the U.S. and show solidarity with Iran in Lahore, Pakistan, Sunday, Jan. 11, 2026. (AP Photo/K.M. Chaudary)

Shiite Muslims hold placards and chant slogans during a protest against the U.S. and show solidarity with Iran in Lahore, Pakistan, Sunday, Jan. 11, 2026. (AP Photo/K.M. Chaudary)

Activists carrying a photograph of Reza Pahlavi take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House, in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)

Activists carrying a photograph of Reza Pahlavi take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House, in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)

Activists take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)

Activists take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)

Protesters burn the Iranian national flag during a rally in support of the nationwide mass demonstrations in Iran against the government in Paris, Sunday, Jan. 11, 2026. (AP Photo/Michel Euler)

Protesters burn the Iranian national flag during a rally in support of the nationwide mass demonstrations in Iran against the government in Paris, Sunday, Jan. 11, 2026. (AP Photo/Michel Euler)

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