Elon Musk has spoken about his hopes for an amenable tariff condition between the United States and the European Union. The tech billionaire said on April 5 that he hopes for a “zero-tariff situation” between Europe and the U.S.
“At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation, effectively creating a free-trade zone between Europe and North America,” Musk said in a video-link interview with Matteo Salvini, Italy’s deputy prime minister and the leader of the far-right League party, during a League congress in Florence.
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Musk’s comments come after President Donald Trump escalated his tariff hikes against trade partners, sending the stock market in a downward spiral with industry heavyweights like Goldman Sachs and J.P. Morgan betting on a recession to happen soon.
In an exchange Saturday on his social media platform X, Musk slammed Peter Navarro, the Trump administration’s senior counselor for trade and manufacturing, who has championed for the tariffs.
Tariffs could increase production costs for Tesla, raising vehicle prices or reducing profit margins. For SpaceX, tariffs on aerospace materials could elevate launch costs. Both companies may face challenges in international markets, with tariffs impacting competitiveness and pricing, potentially disrupting supply chains and affecting global sales and contracts.
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“A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk posted about Navarro’s academic background. The Tesla CEO also added of Navarro: “He ain’t built sh*t.”
The head of the Department of Government Efficiency (DOGE), who spent the previous weeks laying off thousands of federal employees in a cost-cutting measure for the government, does not seem to be a big fan of tariffs himself. Musk has faced major losses in dropping stock prices as the value of both Tesla and SpaceX continues to spiral. Adding tariffs to the mix may not bode well for the future of his companies.