Elon Musk, one of the most influential business leaders in the world and a key advisor to President Donald Trump, is facing an uphill battle as he attempts to dissuade the president from implementing sweeping new tariffs.
Despite his close ties to Trump, Musk’s efforts to reverse the administration’s aggressive trade policies have so far been unsuccessful, raising questions about whether even one of Trump’s most prominent allies can change his mind.
Musk’s Push Against Tariffs
Over the past weekend, Musk made direct appeals to Trump in private conversations, urging him to reconsider the proposed 50% tariffs on Chinese imports. This follows earlier tariff hikes of 34% announced just last week and a baseline 10% tariff on all imports. Musk has publicly criticized these measures, arguing that they harm American businesses more than they help and could spark a global trade war.
On social media platform X (formerly Twitter), Musk shared a video of the late economist Milton Friedman explaining the benefits of international trade cooperation.
He also advocated for a “zero-tariff” agreement between the United States and Europe during discussions with Italian Deputy Prime Minister Matteo Salvini. Musk has consistently called for free trade zones and the open labour movement as solutions to global economic challenges.
A Rift Between Allies
Musk’s opposition to Trump’s tariff policies represents a significant rift between two figures who have shared a strong political and professional relationship. Musk was a major donor to Trump’s re-election campaign, contributing nearly $290 million, and has been an informal advisor on issues ranging from technology to government efficiency. However, tariffs have become a sticking point in their alliance.
The disagreement has also spilled into public discourse. Over the weekend, Musk criticized Peter Navarro, one of Trump’s top trade advisors and an architect of the tariff strategy.
In a post on X, Musk mocked Navarro’s academic credentials, calling his PhD in economics from Harvard “a bad thing.” The White House defended its team, emphasizing that Trump remains the ultimate decision-maker.
The Stakes for Tesla and Global Trade
Musk’s concerns are not purely ideological; they are deeply tied to the fortunes of his companies, particularly Tesla. The electric vehicle manufacturer relies heavily on both U.S. and Chinese markets for manufacturing and sales.
Higher tariffs could disrupt Tesla’s supply chains and increase costs, further straining a company already grappling with declining stock prices and consumer backlash.
Tesla is not alone in feeling the pressure. Analysts warn that Trump’s escalating tariffs could have broader implications for American industries reliant on international trade. From agriculture to technology, businesses are bracing for potential losses as foreign governments retaliate with their tariffs.
Trump’s Position: Unyielding but Open to Talks
Despite Musk’s efforts, Trump appears steadfast in his commitment to tariffs as part of his “America First” agenda. On Monday, he doubled down on his plans for additional levies but left the door open for negotiations. “We’re protecting American jobs and industries,” Trump said in a statement. “But I’m always willing to talk if it benefits our country.”
This willingness to negotiate may offer a glimmer of hope for Musk and other critics of the tariff policy. However, Trump’s track record suggests that any concessions would likely come with significant conditions.
Can Musk Succeed?
Musk’s influence is undeniable, but his ability to sway Trump on this issue remains uncertain. While he has successfully shaped discussions on topics like electric vehicles and government efficiency, tariffs touch on core elements of Trump’s economic strategy. For now, it seems unlikely that Musk will pull Trump back from the tariff ledge entirely.
As tensions escalate between two of America’s most prominent figures, the outcome of this debate could have lasting implications for global trade and economic policy. Whether Musk can leverage his relationship with Trump to achieve meaningful change remains one of the most closely watched dynamics in Washington today.