Elon Musk urges Trump to repeal tariffs on China
What's the story
Tesla CEO Elon Musk has appealed to US President Donald Trump to reconsider his decision on imposing hefty tariffs on Chinese imports, as per The Washington Post.
The call for tariff repeal comes as tensions rise over a proposed 50% levy, with Musk warning that such an increase could lead to higher costs for both consumers and businesses.
He has also criticized the creators of this policy and advocated for a free trade zone between the US and EU.
Targeted criticism
Musk criticizes Trump's trade advisor
Musk's frustration appears to be aimed at Peter Navarro, Trump's trade advisor and the mastermind behind the current tariff plans.
He took to social media to question Navarro's academic credentials, saying that "A PhD in Econ from Harvard is a bad thing, not a good thing."
The White House has defended its team with Press Secretary Karoline Leavitt saying that when the President makes a decision "everyone rows in the same direction to execute."
Support network
Musk's allies voice concerns over potential tariffs
Musk's opposition to the tariffs has sent ripples through Trump's inner circle, as Tesla fights declining demand and a plummeting stock price amid rising political tensions.
Many of Musk's allies in tech and business are now speaking up.
Investor Joe Lonsdale, a close Musk associate, publicly said he had warned administration officials in recent days that these tariffs would hurt American companies more than Chinese ones.
Coalition efforts
Business leaders push for moderate trade policies
According to The Washington Post, a group of business leaders is trying to form an informal coalition to push the administration toward more moderate trade policies.
Their plan was to encourage Trump to follow Treasury Secretary Scott Bessent's example and soften his stance.
But Commerce Secretary Howard Lutnick's firm support for protectionism has complicated these internal efforts.
Market impact
Tesla's stock price falls amid political tensions
Tesla's demand has declined in the past few months, with many analysts blaming Musk's growing political presence.
Dan Ives of Wedbush Securities said the brand is facing major reputational issues due to "the backlash from Trump tariff policies in China and Musk's association."
He reduced Tesla's price target from $550 to $315, saying "Tesla has essentially become a political symbol globally."
Tesla's shares currently trade around $233, down 38% since the start of the year.
Family feud
Musk and his brother clash over tariffs
On social media, Musk had commented "Good points" on a post from the official US trade representative's account defending Trump's reciprocal tariffs announced last week.
His brother, Kimbal Musk, a fellow Tesla board member, was less diplomatic.
He criticized Trump for being "the most high tax American President in generations," and accused him of implementing a structural tax on American consumers through his tariff strategy.
Vision shared
Musk advocates for a tariff-free future
In a chat with Italy's Deputy Prime Minister Matteo Salvini over the weekend, Musk painted a picture of a tariff-free future.
He hoped Europe and the US would eventually head toward "a zero-tariff situation."
Additionally, he pushed for freer movement across borders, particularly for skilled workers.
"That has certainly been my advice to the president," said Musk, who runs Tesla, SpaceX, xAI, X, and has investments across the globe.
Past disputes
Musk's previous legal challenges against Trump's tariffs
This isn't the first time Musk has taken Trump on trade issues. In 2020, Tesla sued the Trump administration over previous tariffs.
Musk, who initially supported the move, later expressed displeasure and reportedly scolded his staff after the decision was taken.
The lawsuit was criticized by right-wing circles who accused Musk of being too friendly with China and undermining Trump's "America First" policy.