Tensions between U.S. President Donald Trump and billionaire entrepreneur Elon Musk are intensifying as Trump indicates a review of the federal contracts that Musk's companies hold with the U.S. government.

Speaking to media aboard Air Force One, Trump emphasized the significant financial implications of these contracts, referring to subsidies as a key concern.

'We are going to review everything...

it’s a considerable subsidy,' Trump stated, during his trip to his golf club in Bedminster, New Jersey.

The ongoing verbal exchange follows Musk's criticisms regarding Trump's proposed budget, to which the president replied on social media, suggesting that the best way to save millions for the government would be to cancel subsidies and contracts associated with Musk.

Significant contracts held by Musk's companies include agreements with SpaceX, which recently secured a $5.9 billion contract with the U.S. Space Force for satellite launches and missions over the next five years.

Additionally, NASA awarded SpaceX a contract worth $2.89 billion in 2021 for the development of the lunar Starship Human Landing System and for conducting two lunar missions.

Musk, who served as head of the Office of Government Efficiency aimed at reducing government expenses until May 30, recently threatened to dismantle his Dragon spacecraft program, crucial for transporting personnel and supplies to the International Space Station (ISS).

However, he later retracted this threat.

In a separate interaction with journalists, Trump commented on evaluating the potential recourse regarding the contracts.

'We will look into it, only if it's fair, only if it's fair for him and for the country.

I would certainly consider it.

But it has to be fair,' he stated, without providing further specifics.

He asserted that the U.S. could operate independently of its contracts with Musk.

When asked about the possibility of reopening investigations into Musk's companies, Trump indicated he was not informed on that matter.

He also added that he does not have time to focus on Musk, who had recently been an influential ally, remarking that he is occupied with pressing international issues, including trade relations with China, the situation in Russia, efforts to conclude the war in Ukraine, and negotiations regarding a nuclear agreement with Iran.

'We just wish him the best,' Trump remarked concerning Musk, while also noting that discussions with Chinese leadership are 'well advanced.' He recounted a two-hour telephone conversation with Chinese President Xi Jinping as 'very interesting,' describing the need for clarifications on tariffs amidst ongoing mutual accusations related to trade.