Elon Musk urges Trump to reconsider tariffs amid trade tensions
Elon Musk questions Trump tariff strategy
Tesla CEO Elon Musk has publicly and privately distanced himself from President Donald Trump’s escalating trade war with China, voicing concerns that the administration’s protectionist policies could backfire on American businesses, including his own.
While Musk has long been a vocal supporter of Trump—donating nearly $290 million to Republican campaigns during the 2024 election cycle—his latest actions mark a rare moment of divergence, reports Cryptopolitan.
Over the weekend, Musk criticized the White House’s trade strategy on his platform X and reached out to Trump personally in an unsuccessful attempt to reverse the new tariff plans, according to sources familiar with the matter.
Business Concerns Meet Political Loyalty
Tesla’s deep ties to both U.S. and Chinese markets make it particularly vulnerable to any deterioration in cross-border trade. On Monday, Trump threatened a new 50% tax on Chinese imports if Beijing does not withdraw its own retaliatory tariffs. The move could intensify market uncertainty and damage firms like Tesla that operate globally.
“Elon is increasingly caught between political loyalty and corporate reality,” said Dan Ives, an analyst at Wedbush Securities. Ives downgraded Tesla’s stock price target from $550 to $315, citing reputational risks and policy volatility.
“Tesla has become a political symbol globally… That’s a very bad thing for the future of this disruptive tech stalwart.” Tesla stock fell 2.56% in Tuesday’s pre-market trading and has declined 38.49% year-to-date, closing at $233.29 per share.
Calls for Cooperation and Trade Reform
In public remarks and interviews, Musk urged U.S. officials to embrace free trade principles. He mocked White House trade adviser Peter Navarro in an X post, dismissing the logic behind tariffs and referencing economist Milton Friedman’s arguments for market liberalism. In a separate interview, Musk advocated a zero-tariff zone between the U.S. and Europe, calling it “my advice to the president.”
Despite his criticisms, Musk acknowledged on X that a recent post by the U.S. Trade Representative raised “good points,” admitting that tariffs may be justified in cases of unfair trade practices. Still, his brother and Tesla board member, Kimbal Musk, posted a pointed critique: “A tax on consumption also means less consumption. Which means less jobs.”
Reminder, China vowed to retaliate after President Donald Trump threatened a sharp increase in tariffs on Chinese imports, escalating tensions between the world’s two largest economies and raising the likelihood of a drawn-out trade conflict.
