U.S. President Donald Trump on July 6 commented on tech billionaire Elon Musk's plan to create a new political party, calling it "ridiculous" and warning that third-party movements have historically failed in the United States.

"I think creating a third party is ridiculous... we've had tremendous success with the Republican Party," Trump told reporters on July 6 before boarding Air Force One in Morristown. "The Democrats have lost their way, but it's always been a two-party system, and I think creating a third party just adds to the confusion."

These comments came after Musk unveiled plans on July 5 to launch a new political force in the U.S. called the "America Party."

Musk said the party's goal is to "give you back your freedom" and offer an alternative to the entrenched Republican and Democratic systems, a few weeks after a public split with Trump.

The strained relationship between Musk and Trump began to deteriorate significantly after a period when Musk publicly supported Trump's re-election bid and held a high-profile role in the U.S. government's Department of Government Efficiency (DOGE).

Musk's new party announcement followed Trump signing a major tax and spending bill into law, the One Big Beautiful Bill Act, legislation that Musk had strongly criticized.

Trump later commented further in a Truth Social post, saying that third parties bring "complete and total disruption and chaos" and criticizing Musk.

"I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks," Trump wrote.

Trump also linked Musk's political shift to his frustration over the recently passed Republican bill eliminating the federal electric vehicle mandate.

"It is a Great Bill but, unfortunately for Elon, it eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time. I have been strongly opposed to that from the very beginning," Trump added.

Musk led DOGE until May 30 and had been a key figure in dismantling U.S. foreign aid institutions, including USAID, which delivered billions in aid to Ukraine.

Musk launches ‘America Party’ following public feud with Trump

The announcement came a day after Trump signed his sweeping tax cut and spending bill into law, a legislative act that Musk has fiercely opposed.

The Kyiv IndependentOlena Goncharova

Weeks after a high-profile public falling out with U.S. President Donald Trump, tech mogul Elon Musk announced the creation of a new political party in the United States, dubbed the "America Party."

Musk said on July 5 that the party's aim is to "give you back your freedom" and challenge the traditional two-party Republican and Democratic system.

The announcement came a day after Trump signed his sweeping tax cut and spending bill into law, a legislative act that Musk has fiercely opposed. It remains unclear if the America Party has been formally registered with election authorities, but Musk indicated it would launch "next year."

Musk's decision follows a poll he conducted on X on July 4, asking his followers if he should create a new political party.He cited the overwhelming support, writing: "By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy."

The strained relationship between Musk and Trump began to deteriorate significantly after a period where Musk publicly supported Trump's re-election bid and held a high-profile role in the U.S. government's Department of Government Efficiency (DOGE).

In May, Musk announced his departure from DOGE, citing the end of his "scheduled time." Initially, Trump praised him as "one of the greatest business leaders and innovators the world has ever produced."

However, tensions escalated sharply on May 22 after the U.S. House of Representatives passed the "One Big Beautiful Bill Act," a significant tax-cut and spending bill that Trump signed into law on Friday.

Musk vehemently condemned the legislation, calling it a "massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination." He argued that the bill's spending would exacerbate the "already gigantic budget deficit" and "burden American citizens with crushingly unsustainable debt."

Adding to the friction earlier this week, Trump threatened to cut off billions of dollars in federal subsidies to Musk's companies and even hinted at the possibility of deporting the South Africa-born entrepreneur.

‘Disingenuous’ Hegseth paused Ukraine weapons despite Pentagon finding aid wouldn’t hurt US readiness, NBC reports

A senior military review had concluded that while some munitions stockpiles, including precision weapons, were low, they had not fallen below critical thresholds, according to NBC. Still, U.S. Defense Secretary Pete Hegseth opted to stop the shipment. This is reportedly his third such move since February.

The Kyiv IndependentAnna Fratsyvir

Russian authorities are considering a request from the New People's Party to offer political asylum to U.S. tech billionaire Elon Musk, claimed the party's lawmaker, Vladislav Davankov, to the Russian media on June 20.

Davankov, deputy speaker of the State Duma, told reporters at the St. Petersburg International Economic Forum that his party had formally petitioned the Russian Foreign Ministry to provide Musk with asylum. The request is expected to be reviewed within a month, he reportedly said.

"I think Elon Musk has made mistakes, but those mistakes should be forgiven," Davankov said. "If things don't work out for him, we are always ready to welcome him — from a technological and visionary point of view, he's very impressive."

The claim could not be independently verified, and there has been no official confirmation from the Russian Foreign Ministry or Musk. Kremlin spokesperson Dmitry Peskov declined to comment, telling reporters, "Let's wait for a statement from the Foreign Ministry or from Musk himself before we say anything."

The alleged request follows a public conflict that erupted between Musk and U.S. President Donald Trump earlier this month. The billionaire later expressed regret over a series of critical posts aimed at Trump, calling a proposed government spending bill "disgusting" and warning of economic consequences.

Trump hit back during a meeting with German Chancellor Friedrich Merz on June 5, saying on Truth Social that Musk had "just gone crazy."

In response, Musk claimed on social media that Trump owed him his electoral victory, suggesting his influence prevented Democrats from retaining the House.

Earlier this month, Dmitry Novikov, deputy chair of the State Duma Committee on International Affairs, told state-run news agency TASS that Russia would be ready to provide Musk with political asylum if needed.

"I think Musk is playing a completely different game, that he won't need political asylum, although if he did, Russia could certainly provide it," Novikov said on June 6.

The feud has attracted attention in Russia, where Musk is increasingly viewed as a sympathetic figure. Dmitry Medvedev, deputy chairman of Russia's Security Council, joked on X that Moscow could broker peace between "D and E," referring to Donald and Elon, in exchange for Starlink shares. "Don't fight, guys," Medvedev wrote.

Musk led a federal commission on government efficiency until May 30 and has been a key figure in dismantling U.S. foreign aid institutions, including USAID, which has delivered billions in aid to Ukraine.

Though he initially supported Ukraine by providing Starlink satellite systems to aid its defense, Musk eventually adopted Russian talking points, claiming President Volodymyr Zelensky lacks popular support and accusing Kyiv of running a "never-ending draft meat grinder."

He has also spoken out against U.S. military aid to Ukraine, a stance that aligns closely with Kremlin messaging aimed at discouraging Western support for Kyiv.

Russia’s war-fueled economy is running on empty, Central Bank chief warns

“We grew for two years at a fairly high pace because free resources were activated,” Russia’s Central Bank Governor Elvira Nabiullina said.

The Kyiv IndependentAnna Fratsyvir

Last week, Argentinian president Javier Milei was fending off flak and calls for his impeachment. He was accused of fraud for promoting a cryptocurrency that swiftly collapsed, reportedly causing $251 million in losses for 86% of investors. It is the first embarrassment in what has been an extended honeymoon period for Milei, a reformer who promises to remake government in his own libertarian image.  

But if things were getting uncomfortable for him in Buenos Aires, bounding onto the stage at the Conservative Political Action Conference in Maryland with a chainsaw, he seemed right at home. The chainsaw was a gift for Elon Musk, an unabashed admirer of Milei’s economic policies, his belief that government needs to essentially just get out of the way.  

In Argentina, Milei frequently cites his international clout as evidence of the appeal of his libertarian ideology. He says that Trump brought Musk into his government to replicate the role of Federico Sturzenegger, Argentina’s Minister of Deregulation and State Transformation. Whether Musk is a committed libertarian in the Milei and Sturzenegger mold is unknown. And unlike them, Musk has no electoral remit to enact his reforms. Back in September 2024, though, when DOGE had not yet taken shape, Musk posted on X that the “example” Milei was “setting with Argentina will be a helpful model for the rest of the world.”

And With DOGE fully up and running, Musk described Sturzenegger’s “Chainsaw 2.0” or “deep chainsaw” plans as “awesome.” In this plan, the national government of Argentina would, for instance, not build public housing because it’s something the private sector can do. The “lesson for other countries,” Sturzenegger says, “is that we should revisit the limits of what can be done.”

Just over a year into his government, Milei cut public spending by 30%, shut down half of the country's ministries, eliminated hundreds of laws and decrees, slashed nearly 40,000 public sector jobs, and reduced public works budgets to a bare minimum—all without major civil unrest, in the face of an opposition that remains largely paralyzed.

The shock Americans feel as they try to comprehend exactly how much power DOGE has been given, is how Argentinians felt as they watched Milei’s government—largely composed of individuals with no political experience, some without even a formal appointment—dismantle the state. 

While Milei has dramatically reduced inflation to 2.2%—no small feat in a country where inflation had crossed 200%—his cuts, alongside soaring costs, have also pushed some into poverty and his once high approval ratings are falling. 

That’s why his trip to the U.S. was important. At CPAC it’s Milei’s conservatism – last month in Davos, he railed against the “promoters of the sinister agenda of wokeism” – that counts, not the facts of his governance. Milei takes pride in his high standing within the global right wing. He is a part of what Italian prime minister Giorgia Meloni, in her own CPAC speech, called a global conservative collaboration. “When Bill Clinton and Tony Blair created a global, leftist liberal network in the 90s,” she said, “they were called ‘statesmen.’ Today when Trump, Meloni, Milei and, maybe, Modi talk, they are called a ‘threat to democracy.’ This is the left’s double standard.” It is this global prominence, Milei hopes, that will continue to propel his agenda forward in Argentina and shield him from the fallout of the crypto scandal. 

As for Milei’s effect on the U.S. – both Trump and Musk appear to be looking at him as the canary in the coalmine of radical deregulation. Just how far can governments go down the path of libertarianism? How far can they go to redefine the role of government in society?  Both approaches reflect a foundational shift in governance philosophy - from institutional processes to disruption by outsiders who view existing systems as obstacles rather than safeguards.

Milei’s first year in government offers a preview of what's unfolding in America. Musk is now taking Milei's playbook further by adding technology - developing AI tools to automate the government downsizing that Milei executed manually with his 40,000 job cuts. Both men use their credentials as disruptors to justify radical changes while dismissing criticism as establishment resistance. And both have created a mutual amplification system - Milei points to Musk's support as validation while Musk points to Argentina as proof that his approach works, despite emerging evidence to the contrary in both cases. A U.S. district judge has, at least temporarily, stopped DOGE from accessing treasury data on the grounds that such data might be “improperly disclosed.” As questions mount about DOGE’s intentions, including from its own employees, Americans should watch Argentina’s libertarian experiment closely. It could serve not as a blueprint but as a warning about what happens when bureaucratic guardrails are dismantled with chainsaws, real or metaphorical.

A version of this story was published in this week’s Coda Currents newsletter. Sign up here.

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