US President Donald Trump and billionaire Elon Musk don’t seem to agree on the issue of tariffs—taxes on goods imported from other countries. Recently, Musk reportedly made a personal appeal to Trump, asking him to reverse the new tariffs on Chinese imports. This comes after Trump announced high tariffs that raised concerns about a possible global trade war.
According to The Washington Post, Musk, who is the CEO of Tesla, even held private talks with Trump to convince him to reduce the tariffs. Despite these efforts, Musk’s appeal has not been successful so far.
Musk’s Public Disagreement with Trump
Musk has been open about his opposition to tariffs, believing they hurt businesses like Tesla, which relies on both the US and China for manufacturing and sales. He also posted a video on X (formerly Twitter), showing economist Milton Friedman explaining the benefits of global trade cooperation. This was seen as a subtle way of showing his disagreement with Trump’s trade policies.
Before the tariffs took effect, Musk told Italy's Deputy Prime Minister that he hoped for a "zero-tariff" situation between the US and Europe. He even mentioned that he had advised Trump to aim for zero tariffs.
Why This Matters for Tesla
Musk is under pressure because Tesla’s demand is dropping in global markets. This situation has been made worse by his political involvement. After the tariffs were announced, Tesla’s stock fell by over 2.5 per cent, and it has lost more than 38 per cent of its value this year.
Musk also criticized Peter Navarro, a White House adviser who supports Trump’s tough tariff policies. He mocked Navarro’s Harvard degree, saying, "A PhD in Econ from Harvard is a bad thing, not a good thing." Navarro hasn’t responded to Musk’s comments, but a White House spokesperson defended him, saying Trump’s team includes people with different ideas.
A Strained Relationship
This disagreement is one of the biggest public breaks between Trump and one of his key advisers. Musk, who has spent nearly USD 290 million supporting Trump during the last presidential election, was also given a role in leading cost-cutting efforts at the US Department of Government Efficiency (DOGE).
Interestingly, Musk is expected to step down from his role at DOGE soon, which might explain the timing of this public conflict. He has had other disagreements with Trump’s team before, including issues like H1-B visas for skilled workers and government spending.
