The once-solid alliance between former President Donald Trump and Elon Musk appears to be thawing, just days after a heated public feud erupted between the two billionaires. Meanwhile, economist Jeffrey Sachs is weighing in on US trade policies, particularly concerning tariffs and the ongoing negotiations for a US-India trade deal.

Signs of a potential truce between Trump and Musk emerged after a week of online sparring over Trump's "big, beautiful bill," a legislative package encompassing tax cuts and immigration enforcement. White House aides, concerned about escalating tensions, reportedly scheduled a call with Musk to mediate a resolution. Trump himself projected an attitude of nonchalance, stating in an interview that things were "going very well, never done better," while touting his favorability ratings. This contrasted sharply with the preceding days, which saw both men exchanging barbs on social media.

The feud was triggered by Musk's criticism of the cost of Trump's legislative agenda, projected to add trillions to the deficit. Musk argued that the bill was fiscally irresponsible, prompting a sharp response from Trump, who accused Musk of turning against him after previously supporting the legislation. The conflict escalated quickly, with Musk suggesting that Trump wouldn't have won the 2024 election without his help and even hinting at potentially damaging information regarding Trump's alleged ties to Jeffrey Epstein. Trump retaliated by questioning Musk's sanity and threatening to terminate government subsidies and contracts held by Musk's companies, including SpaceX.

However, amidst the acrimony, signs of a possible reconciliation emerged. Billionaire investor Bill Ackman urged both men to make peace for the benefit of the country, and Musk responded, "You're not wrong." Trump also appeared to temper his commentary at the urging of White House aides, focusing instead on promoting his legislative agenda. While Trump initially dismissed the possibility of speaking with Musk, the scheduling of a call by White House staff suggests a desire to de-escalate the conflict. The implications of the Trump-Musk feud extend beyond mere personal animosity. Musk's companies rely heavily on government contracts, and a sustained conflict could jeopardize these lucrative deals. Moreover, the public spat highlights the growing divide within the Republican party, with some members calling for cooler heads and urging Musk to stop attacking Trump.

Turning to the topic of trade, economist Jeffrey Sachs has been vocal about the need for caution regarding US trade policies, particularly as they relate to tariffs and trade deals. Sachs has warned India and Europe against falling into what he calls Trump's "trade trap," arguing that the US is attempting to exploit countries for its own geopolitical gains. He has specifically advised India to avoid being used as a tool in Washington's strategy to counter China. Sachs suggests that India should prioritize its own interests and maintain normal relations with China, rather than aligning itself too closely with the US in a way that could harm its own economic prospects.

Meanwhile, the US and India are engaged in high-level discussions to finalize an interim trade deal, with the goal of reaching an agreement before President Trump's July 9 deadline for imposing reciprocal tariffs. The deal aims to reduce tariffs in sectors such as agriculture and automobiles, with India seeking a commitment from the US to revert to pre-April 2 tariff levels for labor-intensive sectors. US Commerce Secretary Howard Lutnick has expressed optimism about finalizing a trade deal soon, signaling that the two countries have "found a place that really works for both." The proposed pact envisions a substantial increase in bilateral trade volume, from the current $191 billion to $500 billion by 2030. However, negotiations have been complicated by US demands for greater access to India's farm and dairy markets, which India has resisted due to concerns about potential rural backlash. Jeffrey Sachs has cautioned India to approach these negotiations with caution, warning against the notion that India can simply replace China as a major supplier to the United States. He argues that Trump's ultimate goal is to bring manufacturing back to the US, and that India should not take the relationship for granted.