Elon Musk and President Trump are at odds over the US president’s aggressive tariff policies, which Musk strongly opposes due to their negative impact on US trade relations and potentially harming his electric car company, Tesla. Despite Musk’s public support for a zero-tariff agreement with Europe, Trump has continued to escalate trade barriers.
The disagreement is a stark contrast to the closer relationship between Trump and Musk prior to the November election, when Musk pledged millions of dollars to Trump’s campaign and expressed support for electric vehicles. However, Trump’s recent tariff hikes, including a proposed 50% increase on China, have shifted their stance, with Musk accusing Trump of ignoring his pleas.
Musk has been vocal about his concerns, stating that he is “hopeful” for a zero-tariff agreement between the US and Europe, which would create a free trade zone between the two regions. He also emphasized the need for labor freedom to move between nations, allowing people to choose where they want to work.
Tesla’s share price has taken a hit due to Trump’s policies, dropping 38.5% this year, with Musk’s net worth taking a significant blow as Tesla’s stock struggles. The company has already faced vandalism and boycotts, with customers trading in their motors and vandalizing Tesla sites and vehicles. Musk’s public statements on tariffs are consistent with the concerns of his company, highlighting the need for a more collaborative approach to trade policies.
The feud between Trump and Musk is a significant development, highlighting the challenges posed by the US president’s trade agenda and its impact on businesses like Tesla.
Source: https://fortune.com/2025/04/08/cracks-trump-musk-partnership-reported-tariffs-eu-us