WASHINGTON, July 5 (Reuters) - The dispute between Republican President Donald Trump and his main campaign financier Elon Musk took another fractious turn on Saturday when the space and automotive billionaire announced the formation of a new political party, saying Trump's "big, beautiful" tax bill would bankrupt America.

The tech billionaire’s effort to create a new political party, called the America Party, comes amid a ramped-up feud with the president over his new domestic policy law.

Musk previously threatened to start the new "America Party" last week, expressing his disapproval of Trump's "One Big Beautiful Bill Act" and declaring that he would form a new political party if it passed. This spending bill ultimately did pass, with Trump signing it into law on Friday, July 4.