Elon Musk has urged US President Donald Trump to reverse the broad tariffs on Chinese imports, according to The Washington Post. As Trump considers imposing new 50% duties, Musk warned of escalating costs for both consumers and businesses.
Worried by the global stock market crash and himself losing billions of dollars following US President Donald Trump’s announcement of sweeping reciprocal tariffs, Elon Musk, an advocate of the US President’s aggressive economic policy, has personally appealed to him to withdraw the tariff decision, The Washington Post has reported.
As tensions escalated over the proposed 50 per cent tariff on Chinese imports, Musk took to social media to express his opposition while simultaneously attempting to sway the President directly over the weekend, it added.
Musk launched a series of social media posts criticising one of the key White House advisers behind Trump’s aggressive tariff plan. People familiar with the situation confirmed that Musk’s intervention has not yet been successful, the report said.
On Monday, Trump threatened to impose an additional 50 per cent tariff on imports from China, alongside the 34 per cent tariffs announced the previous week, although he signalled some openness to negotiating certain aspects of his policy.
Meanwhile, Musk posted a video on X featuring the late economist Milton Friedman, who advocated for international trade cooperation and emphasised the importance of “the impersonal operation of prices” through a breakdown of the materials used in a simple wooden pencil.
Rift between Donald Trump and Elon Musk?
Musk’s public disagreement with Trump marks a significant rift between the president and one of his prominent backers, who had contributed nearly $290 million to support Trump and other Republican candidates in the previous year’s elections and has been leading the Department of Government Efficiency (DOGE), responsible for cost-cutting measures.
Musk has also clashed with other members of Trump’s coalition on issues such as H1-B visas for skilled immigrants and the government’s approach to spending.
On Saturday, Musk targeted White House trade adviser Peter Navarro, a central figure in shaping the tariff policies, questioning Navarro’s qualifications. Musk wrote, “A PhD in Econ from Harvard is a bad thing, not a good thing.” Navarro did not respond to a request for comment.
White House press secretary Karoline Leavitt responded to Musk’s bashing, saying, “The president has assembled a remarkable team of highly talented and experienced individuals who bring different ideas to the table, knowing that President Trump is the ultimate decision-maker. When he makes a decision, everyone rows in the same direction to execute. That’s why this Administration has achieved more in two months than the previous Administration did in four years.”
Musk stance on tariffs and Tesla’s woes
As the CEO of electric vehicle maker Tesla, Musk has long been critical of tariffs, which he sees as harmful to businesses like his that rely on both the US and China as key manufacturing and consumer markets. Analysts have suggested that other car manufacturers are likely to be more impacted by the new tariffs than Tesla.
Musk’s opposition to tariffs dates back to at least Trump’s first term. In 2020, Tesla’s top executives pushed for the company to sue the Trump administration over its tariffs on China. Musk initially agreed, acknowledging that some parts of the tariff package were unfair to the company.
However, after Tesla filed the lawsuit in September 2020, Musk responded negatively, even reprimanding staff members for suggesting the legal action. According to a source familiar with the matter, Musk was upset because right-wing commentators on Twitter accused him of attempting to gain favour with China and undermining Trump’s “America First” agenda.
The share price of Tesla plunged more than 2.5 per cent on Monday to close at $233.29. It has lost more than 38 per cent of its value since the beginning of the year.