Topline
Elon Musk, billionaire Tesla CEO and Department of Government Efficiency chief, told a meeting of Italy’s right-wing League Party he wants the United States and Europe to move to a system of zero tariffs and free trade, days after President Donald Trump issued new tariffs on nearly every country, including the European Union.
Elon Musk said he believes in creating a “free trade zone between Europe and North America.” (Photo … More
Key Facts
Musk, appearing at the meeting Saturday via video conference, spoke with Italy’s far-right Deputy Prime Minister Matteo Salvini, stating he believes the United States and Europe should “move ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America.”
Musk also said he believes workers should be able to move between the United States and the European Union more freely for work opportunities.
The Tesla billionaire said this has “certainly been my advice to the president,” Bloomberg reported, though it was unclear whether he meant his comments on the tariffs or mobility between the United States and European Union, or both.
Earlier Saturday, Musk slammed Trump’s trade adviser, Peter Navarro, in a post on X, replying to a user who had praised Navarro, a proponent of tariffs: “A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk said, slamming Navarro’s elite education, and, “He ain’t built sh—.”
How Much Did Trump Increase Tariffs On The European Union?
Trump, during his “Liberation Day” tariffs announcement, said tariffs would increase 20% on the European Union. The tariffs, which are already controversial and have sent shockwaves throughout the global economy, appear likely to provoke an EU response. The 10% baseline tariffs Trump implemented on all imports from most countries took effect Saturday at 12:01 a.m. EST, with higher tariffs due to start next week. European Commission President Ursula von der Leyen said the EU is preparing a response to tariffs Trump had already imposed on steel and aluminum, followed by a second measure in response to the “Liberation Day” tariffs. “We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” von der Leyen said Thursday. She slammed Trump’s tariff plan as having “no order in the disorder” and “no clear path through the complexity and chaos that is being created.” Other European leaders have also slammed Trump’s EU tariffs, including French President Emmanuel Macron, who called it a “brutal and unfounded decision” that will have a severe impact on Europe and make U.S. consumers “poorer and weaker.” Italy’s far-right prime minister Giorgia Meloni, who is backed by Trump and Musk, said the tariffs are wrong, but said it is “not a catastrophe.”
Key Background
Trump’s “Liberation Day” tariffs had an immediate impact on the global economy, causing the Dow Jones Industrial Average to plummet 1,680 points Thursday and another 2,200 points Friday, marking the worst losses since the COVID-19 pandemic began in 2020 and wiping nearly $5 trillion in market capitalization. Trump has repeatedly defended the tariffs, though he acknowledged the impact “won’t be easy” and urged Americans to “hang tough” in a post on Truth Social on Saturday. Economists have voiced fears about the tariffs’ impact on the global economy, with JPMorgan Chase’s top economist stating the tariffs will bring the United States “perilously close” to a recession.
Tangent
Musk’s appearance at Italy’s League Party event is his latest show of support for the European right wing. Musk previously appeared virtually at a rally for the right-wing Alternative for Germany party ahead of Germany’s February elections, and he has frequently promoted the party, which promotes anti-immigrant and Eurosceptic beliefs, on his X account. Earlier this week, he voiced support for France’s far-right leader Marine Le Pen after her embezzlement conviction. German Chancellor Olaf Scholz has called Musk’s support for Europe’s far-right “really disgusting” and “not good for the democratic development in all [of] the European Union.”
Further Reading
World leaders criticise Trump tariffs as ‘major blow’ (BBC)
Trump Tells Americans To ‘Hang Tough’ After Liberation Day Tariffs Wipe Trillions From Stock Market (Forbes)
