Billionaire Elon Musk admitted regret Wednesday over his last week’s inflammatory posts aimed at U.S. President Donald Trump.

“I regret some of my posts about President @realDonaldTrump last week. They went too far,” Musk wrote on his social media platform X, ending days of fiery rhetoric that had pushed the relationship between two of the country’s most powerful men to the brink.

The fallout began earlier this month when Musk, the CEO of Tesla and SpaceX, lambasted Trump’s flagship “One Big Beautiful Bill” – a sweeping tax and spending package – as a “disgusting abomination.”

His criticism focused on what he called bloated government “pork” and hypocrisy over energy subsidies, blasting the bill for preserving oil and gas incentives while failing to support electric vehicles.

Trump hit back swiftly.

During a joint Oval Office press briefing with German Chancellor Friedrich Merz on Thursday, he dismissed Musk’s attacks as self-serving, accusing the tech mogul of being upset over the loss of EV subsidies that directly impact Tesla’s business.

He suggested Musk was more familiar with the bill than he publicly claimed, casting doubt on the sincerity of his objections.

But the barbs didn’t stop at policy.

Musk escalated the feud by floating unsubstantiated claims that Trump’s name appeared in sealed government documents tied to Jeffrey Epstein, the disgraced financier whose 2019 death in federal custody remains a lightning rod for conspiracy theories.

“@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public,” Musk posted on Thursday.

He went further, backing a call for Trump’s impeachment and suggesting Vice President JD Vance should take over the presidency.

By Saturday, those posts were quietly deleted.

Trump, never one to let an attack go unanswered, took to Truth Social with ferocity.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” he wrote, threatening to yank federal support for both Tesla and SpaceX, which rely heavily on government partnerships – including critical contracts with NASA.

He also accused Musk of “going CRAZY” after being pushed out of his administration and losing political influence.

Social media exploded with commentary, as observers labeled the clash everything from a political crisis to “a glorious day for terminally online people.”

Musk’s sudden tone shift – publicly walking back his most explosive accusations – suggests more than just a change of heart. Market turbulence may have played a key role.

On Thursday, stocks for both Tesla and Trump Media & Technology Group (the parent company of Truth Social) took a hit, prompting speculation that Musk’s retreat was as much about damage control as personal reflection.

Behind the scenes, pressure mounted.

Musk’s father, Errol Musk, revealed in an interview with Al Arabiya English that he had advised his son to let the spat “fizzle out.” “I sent him a message,” Errol said. “This needs to end.” He added that Trump, given his voter mandate, would likely emerge stronger.

The timing also raised questions about Musk’s political ambitions. Even as he apologized, Musk continued floating the idea of forming a new centrist “America Party” aimed at voters disillusioned with the traditional two-party system. A poll on X showed overwhelming support for the concept – 80% of respondents favored the idea, highlighting his persistent appetite for political relevance.

Just months ago, Musk had been one of Trump’s most prominent allies. He endorsed the president following an assassination attempt in July 2024 and poured $277 million into Trump’s campaign and affiliated Republican groups.

Appointed co-chair of the newly minted Department of Government Efficiency (DOGE), Musk pushed to slash $2 trillion in federal spending, though his team ultimately delivered only a fraction of that target.

Trump rewarded him with a grand White House ceremony and a novelty key, symbolizing the deep mutual admiration that once defined their bond.

That alliance has frayed, perhaps irreparably. Speaking to NBC’s Kristen Welker on Saturday, Trump made clear his view of the relationship’s future: “I would assume (our relationship) is over.” Still, he stopped short of reclaiming the ceremonial White House key and praised Musk’s early efforts with DOGE, suggesting a lingering respect despite their public fallout.

The platform dynamics added fuel to the fire. While Trump has his Truth Social base, Musk’s X dwarfs it in reach and influence.

With over 202 million followers, Musk’s posts and memes dominated the digital battlefield, earning him both admiration and ire.

Saturday, the peak of the feud, was hailed by users as “the most interesting day on X in years,” with commentators marveling at the surreal blend of politics, technology, and personal vendettas unfolding in real-time.

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Inflation in the United States rose moderately in May as higher prices for groceries and some imported goods were largely offset by cheaper gas, travel services, and rents, according to official data on Wednesday that suggested the Trump administration’s import tariffs are not pushing prices much higher, at least not yet.

Consumer prices increased 2.4% last month compared with a year ago, according to a Labor Department report. That is up from a 2.3% yearly increase in April.

Excluding the volatile food and energy categories, core prices rose 2.8% for the third straight month. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed.

The cost of groceries, toys and games, and large appliances rose, which could reflect the impact of President Donald Trump’s tariffs. Yet the price of new and used cars, clothes, air fares, and hotel rooms all dropped from April to May, offsetting the increases.

The figures suggest inflation remains stubbornly above the Federal Reserve’s (Fed) 2% target, which makes it less likely that the central bank will cut its key short-term interest rate. President Donald Trump has repeatedly urged the central bank to reduce borrowing costs.

Trump insists on rate cut

Trump described Wednesday’s inflation figures as “great,” saying the Fed should cut rates by one percentage point.

“CPI just out. Great numbers! Fed should lower one full point. Would pay much less interest on debt coming due. So important!!!,” he wrote on Truth Social in all capital letters.

Vice President JD Vance echoed his boss’ call, urging the central bank to ease monetary policy.

“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance wrote on social media platform X.

The central bank is still expected to leave its benchmark overnight interest rate in the 4.25%-4.50% range next Wednesday while policymakers monitor the economic impact of the tariffs.

On a monthly basis, overall prices ticked up just 0.1% from April to May, down from 0.2% the previous month, a sign that inflationary pressures remain muted. Core prices also dropped to 0.1% from 0.2%.

The data showed that Trump’s tariffs haven’t yet pushed overall prices higher, which suggests that many companies could be absorbing the cost of the higher duties, for now.

Still, many economists expect the import taxes to modestly increase inflation in the second half of the year. Companies ranging from Walmart to Lululemon to J.M. Smucker have said they will raise prices in the coming months to offset the impact of higher import taxes.

“You can point to seeing tariffs in this report, but the more important message is that you’re seeing inflation soften enough elsewhere that overall, price pressures continue to subside for the U.S. consumer,” Sarah House, an economist at Wells Fargo, said.

But some of those offsetting price drops for things like cars and air fares are unlikely to continue at the same pace for the rest of this year, she said.

“I don’t think this report signals an all clear – that tariffs are not going to be a concern for the inflation picture,” House said.

Grocery prices rose 0.3% from April to May, and are up 2.2% in the past year. Fruits and vegetables, breakfast cereals, and frozen foods all rose in price last month. Egg costs fell 2.7%, their second straight drop, though they are still more than 40% more expensive than a year ago. Gas prices dropped 2.6% last month.

Last week, the Labor Department’s Bureau of Labor Statistics, which compiles the inflation data, said it is reducing the amount of data it collects for each inflation report. Economists have expressed concern about the cutback, and while it isn’t clear how sharp the reduction is, most analysts say it is likely to have a minor impact. Still, any reduction in data collection could make the figures more volatile.

Higher prices ‘are coming’

Nearly all economists expect Trump’s duties will make many things more expensive this year, including cars and groceries, though by how much is still uncertain.

Under an agreement reached on Wednesday, the U.S. will charge a 55% tariff on imported Chinese goods. This includes a 10% baseline “reciprocal” tariff, a 20% tariff for fentanyl trafficking and a 25% tariff reflecting pre-existing tariffs. China would charge a 10% tariff on U.S. imports.

Trump has also imposed a 10% baseline tariff on imported goods from every other country, and 50% import taxes on steel and aluminum.

Given the potential for higher prices in the coming months, Fed Chair Jerome Powell and other Fed officials have made clear they will keep their key rate unchanged until they have a better sense of how tariffs will affect the economy.

The full impact of the tariffs is still to come, analysts say, even though many tariffs have been in place, in one form or another, since March and April. There are several reasons it can take months for the duties to fully pass through into retail prices.

To begin with, many companies tried to beat the clock by bringing in foreign goods before Trump’s tariffs took effect, producing a flood of imports in March. As a result, they have stockpiled goods in warehouses that weren’t hit by tariffs and so don’t have to raise prices yet.

Some also held off on hiking prices during the chaos of April and May, when Trump announced sweeping tariffs on imports from nearly 60 countries, only to put them on hold a week later.

He also ramped up duties on China to 145%, essentially cutting off trade with the United States’ third-largest trading partner. The U.S. and China then agreed to lower duties.

For many businesses, it wasn’t worth it to raise prices until they had a better sense of where tariffs would settle. It’s possible some duties could fall further if the Trump administration is able to reach trade deals in negotiations with China, the European Union, Japan and other countries.

Still, Bryan Eshelman, a partner and managing director at consulting firm AlixPartners, said higher prices “are coming.”

Eshelman expects that shoppers will start feeling the impact in July, and predicts prices for back-to-school items like clothing and backpacks could go up anywhere from 5% to 15%.

The impact is just starting to hit U.S. food producers, some of which have already begun passing on price hikes to customers. The J.M. Smucker Co., which raised the price for its coffee in May, said Tuesday that it will raise those prices again in August.

CEO Mark Smucker said that “the current US tariff impact on green coffee is our largest exposure.” The company’s shares tumbled 17% on Tuesday.

J.M. Smucker imports 500 million pounds of green coffee annually, mostly from Brazil and Vietnam, which currently face the 10% universal tariff Trump imposed in April. But the two countries could face much higher tariffs when the pause on the so-called “reciprocal” tariffs ends in July.

Most imported goods are actually parts or raw materials for larger products, such as steel and aluminum goods, which are now facing 50% duties. It will take time for those costs to filter through the supply chain and affect prices.

Türkiye’s top economic officials convened Wednesday to discuss measures aimed at expanding the nationwide housing supply, according to an official statement, amid persistent pricing pressures in the real estate market.

The Economic Coordination Board (EKK) also reviewed the performance of the government’s nearly two-year-old economic program, which has primarily focused on tackling inflation, the statement said following the meeting.

Chaired by Vice President Cevdet Yılmaz, the board includes ministers of finance, trade, labor, energy, industry, and agriculture, along with senior officials from other key economic institutions, including the central bank.

Wednesday’s meeting marked the board’s fourth this year.

Aggressive monetary tightening since mid-2023, combined with favorable energy prices, has helped reduce Türkiye’s annual inflation rate by half over the past year.

The inflation lastly dipped to 35.4% in May, compared to around 75% a year ago.

The EKK emphasized that the disinflation process, which began in June 2024, remains on track. It credited the economic program with strengthening Türkiye’s macroeconomic foundations and enhancing the resilience and dynamism of the economy.

The board also evaluated structural reforms in the housing, food, and energy markets. Discussions included policies to improve Türkiye’s export competitiveness, in an effort to mitigate the economic impact of rising global uncertainty and trade protectionism.

The energy sector – one of the key contributors to Türkiye’s current account deficit – was another key industry assessed by the officials, who discussed policies to reduce external dependence and bolster supply security.

The board reviewed recent developments in housing and rental prices and considered concrete steps to boost housing supply, the statement noted. In recent years, affordability concerns have intensified for households amid soaring housing costs.

The EKK also underscored ongoing efforts under the new Investment Incentive System, which aims to promote value-added investments and foster regional development.

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The World Bank lowered its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, citing that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies. It projected that the global economy was set for its worst run since the 2008 financial crisis.

In its twice-yearly Global Economic Prospects report, the global lender downgraded its forecasts for nearly 70% of all economies – including the United States, across Asia and Europe, as well as six emerging market regions – from the levels it projected six months ago before U.S. President Donald Trump took office.

Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective U.S. tariff rate from below 3% to the mid-teens – its highest level in almost a century – and triggered retaliation by China and other countries.

The World Bank is the latest body to cut its growth forecast due to Trump’s erratic trade policies, although U.S. officials insist the negative consequences will be offset by a surge in investment and still-to-be-approved tax cuts.

The bank stopped short of forecasting a recession, but said global economic growth this year would be the weakest outside of a recession since 2008.

By 2027, global gross domestic product (GDP) growth was expected to average just 2.5%, the slowest pace of any decade since the 1960s.

The report forecasts that global trade will grow by 1.8% in 2025, down from 3.4% in 2024, and roughly a third of its 5.9% level in the 2000s.

The forecast is based on tariffs in effect as of late May, including a 10% U.S. tariff on imports from most countries. It excludes increases that were announced by Trump in April and then postponed until July 9 to allow for negotiations.

The World Bank said global inflation was expected to reach 2.9% in 2025, remaining above pre-COVID-19 levels, given tariff increases and tight labor markets. “Risks to the global outlook remain tilted decidedly to the downside,” it wrote. The lender said its models showed that a further increase of 10 percentage points in average U.S. tariffs, on top of the 10% rate already implemented, and proportional retaliation by other countries, could shave another half of a percentage point off the outlook for 2025.

Such an escalation in trade barriers would result “in global trade seizing up in the second half of this year … accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the report said.

Nonetheless, it said the risk of a global recession was less than 10%.

‘Fog on a runway’

Top officials from the U.S. and China met in London this week to try to defuse a trade dispute that has widened from tariffs to restrictions over rare earth minerals, threatening a global supply chain shock and slower growth.

“Uncertainty remains a powerful drag, like fog on a runway. It slows investment and clouds the outlook,” World Bank Deputy Chief Economist Ayhan Kose told Reuters in an interview.

But Kose said there were signs of increased dialogue on trade that could help dispel uncertainty, and supply chains were adapting to a new global trade map, not collapsing. Global trade growth could modestly rebound in 2026 to 2.4%, and developments in artificial intelligence could also boost growth, he said.

“We think that eventually the uncertainty will decline,” Kose said. “Once the type of fog we have lifts, the trade engine may start running again, but at a slower pace.”

Kose said that while things could get worse, trade continued and China, India and others were still delivering robust growth. He said many countries were also discussing new trade partnerships that could pay dividends later.

White House pushes back

The World Bank said the global outlook had “deteriorated substantially” since January, mainly due to advanced economies, which are now seen growing by just 1.2%, down half a percentage point, after expanding by 1.7% in 2024.

The U.S. forecast was slashed by nine-tenths of a percentage point from its January forecast to 1.4%, and the 2026 outlook was lowered by four-tenths of a percentage point to 1.6%. Rising trade barriers, “record-high uncertainty” and a spike in financial market volatility were expected to weigh on private consumption, trade and investment, it said.

The White House pushed back against the forecast, citing recent economic data that pointed to a stronger economy.

“The World Bank’s prognostications are untethered to the data: investment in real business equipment surged by nearly 25% in Q1 of 2025; real disposable personal income grew by a robust 0.7% month-over-month in April; and Americans have now seen three consecutive expectation-beating jobs and inflation reports,” White House spokesperson Kush Desai said.

He added that a sweeping budget package currently making its way through Congress would provide tax relief and “further turbo-charge America’s economic resurgence under President Trump.”

The World Bank cut growth estimates in the eurozone by three-tenths of a percentage point to 0.7% and in Japan by half a percentage point to 0.7%. It said emerging markets and developing economies were expected to grow by 3.8% in 2025 versus 4.1% in the forecast in January.

Poor countries would suffer the most, the report said. By 2027, developing economies’ per capita GDP would be 6% below pre-pandemic levels, and it could take these countries, minus China, two decades to recoup the economic losses of the 2020s.

Mexico, heavily dependent on trade with the U.S., saw its growth forecast cut by 1.3 percentage points to 0.2% in 2025. The World Bank left its forecast for China unchanged at 4.5% from January, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.

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U.S. President Donald Trump said on Wednesday that the U.S. deal with China is “done,” with Beijing to supply magnets and rare earth minerals while Washington will allow Chinese students in its colleges and universities.

“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” Trump wrote on Truth Social using his trademark capitalization.

“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” Trump said.

Trump’s statement came as China and the U.S., the world’s two largest economies, said that they have agreed on a framework to get their trade negotiations back on track after a series of disputes that threatened to derail them. The two sides on Tuesday wrapped up two days of talks in London that appeared to focus on finding a way to resolve disputes over mineral and technology exports that had shaken a fragile truce on trade reached in Geneva last month.

The Geneva deal had faltered over China’s curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own, preventing shipments of semiconductor design software, aircraft and other goods to China.

Trump’s shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs.

“First, we had to get sort of the negativity out and now we can go forward,” U.S. Commerce Secretary Howard Lutnick told reporters after the London meetings.

Asian stock markets rose Wednesday after the agreement was announced.

The talks followed a phone call last week between Trump and Chinese leader Xi Jinping to try to calm the waters.

Li Chenggang, a vice minister of commerce and China’s international trade representative, said the two sides had agreed in principle on a framework for implementing the consensus reached on the phone call and at the talks in Geneva, the official Xinhua News Agency said.

Further details, including any plans for a potential next round of talks, were not immediately available.

Li and Wang Wentao, China’s commerce minister, were part of the delegation led by Vice Premier He Lifeng. They met with Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer at Lancaster House, a 200-year-old mansion near Buckingham Palace.

Wendy Cutler, a former U.S. trade negotiator, said the disputes had frittered away 30 of the 90 days the two sides have to try to resolve their disputes.

They agreed in Geneva to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating trade war that sparked fears of recession. The World Bank, citing a rise in trade barriers, cut its projections for U.S. and global economic growth on Tuesday.

“The U.S. and China lost valuable time in restoring their Geneva agreements,” said Cutler, now vice president at the Asia Society Policy Institute. “Now, only sixty days remain to address issues of concern, including unfair trade practices, excess capacity, transshipment and fentanyl.”

Since the Geneva talks, the U.S. and China have exchanged angry words over advanced semiconductors that power artificial intelligence, visas for Chinese students at American universities and rare earth minerals that are vital to carmakers and other industries.

China, the world’s biggest producer of rare earths, has signaled it may speed up issuing export licenses for the elements. Beijing, in turn, wants the U.S. to lift restrictions on Chinese access to the technology used to make advanced semiconductors.

Lutnick said that resolving the rare earths issue is a fundamental part of the agreed-upon framework and that the U.S. will remove measures it had imposed in response. He did not specify which measures.

“When they approve the licenses, then you should expect that our export implementation will come down as well,” he said.

Cutler said it would be unprecedented for the U.S. to negotiate on its export controls, which she described as an irritant that China has been raising for nearly 20 years.

“By doing so, the U.S. has opened a door for China to insist on adding export controls to future negotiating agendas,” she said.

In Washington, a federal appeals court agreed Tuesday to let the government keep collecting tariffs that Trump has imposed not just on China but also on other countries worldwide while the administration appeals a ruling against his signature trade policy.

Trump said earlier that he wants to “open up China,” the world’s dominant manufacturer, to U.S. products.

“If we don’t open up China, maybe we won’t do anything,” Trump said at the White House. “But we want to open up China.”

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Syria will require “substantial international” assistance to revive its economy, address pressing humanitarian needs, and reconstruct key institutions and infrastructure, the International Monetary Fund (IMF) said on Tuesday.

Syria cannot afford hundreds of billions of dollars in damages and losses from the conflict that first started as protests in 2011 against longtime dictator Bashar Assad and his regime.

Since the current President Ahmad al-Sharaa led the opposition that ousted Assad in December 2024, countries have gradually restored ties with Syria.

During a five-day visit by the IMF earlier this month – the first to Syria by the 191-country lending organization since 2009 – its team met with officials from the public and private sectors, notably the finance minister and central bank governor.

“Syria faces enormous challenges following years of conflict that caused immense human suffering and reduced its economy to a fraction of its former size,” the IMF said.

“While the years of conflict and displacement have weakened administrative capacity, staff at the finance ministry and central bank demonstrated strong commitment and solid understanding.”

Some 6 million people fled Syria during the conflict, and the United Nations estimates that 90% of those who stayed lived in poverty and relied on humanitarian aid to survive. Half a million people were killed in the conflict.

Damascus now anticipates investments and business projects with Qatar, Türkiye, Saudi Arabia and others, as they reestablish flight paths and hold high-level political and economic meetings.

U.S. President Donald Trump said that Washington will lift decades-long sanctions against Syria, but it is unclear how long that process could take. Britain and the European Union had eased some restrictions.

Meanwhile, oil-rich nations Saudi Arabia and Qatar paid off Syria’s debt to the World Bank, valued at nearly $15 billion.

The IMF said it is developing a road map for Syria’s policy and capacity-building priorities for key economic institutions, including the finance ministry, central bank, and statistics agency.

But Syria has a laundry list of reforms it must undertake, including improving its tax collection system, making sure its national budget can pay public sector salaries and basic healthcare and education, empowering the central bank to take measures to bring back confidence to the local currency, and rehabilitate its outdated and battered banking system in line with international standards.

In 2017, the United Nations estimated that rebuilding Syria would cost about $250 billion. Since Assad was overthrown, some experts say that number could be as high as $400 billion.

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