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Billionaire entrepreneur Elon Musk reportedly made a personal appeal to U.S. President Donald Trump, urging him to walk back sweeping new tariffs on Chinese imports. Despite the Tesla CEO’s discreet lobbying and public critique of protectionist policies, his efforts have so far failed to sway the administration, as per a report by The Washington Post.
President Trump on Monday announced a new wave of tariffs—an aggressive 50% levy on Chinese goods—on top of the 34% already in place. The announcement sent tremors through global markets and reignited fears of a prolonged trade war between the world’s two largest economies.
Musk, a longtime critic of tariffs, took a dual approach—subtle on social media, direct in private. While avoiding outright public condemnation of Trump’s policy, Musk posted a video of economist Milton Friedman on X (formerly Twitter), highlighting the interconnected nature of global trade through the humble example of a pencil made from materials sourced across the world.
A Battle of Ideologies
Speaking in an interview over the weekend with Italy’s Deputy Prime Minister Matteo Salvini, Musk advocated for a “zero-tariff situation” between major economies like the U.S. and Europe. “That has certainly been my advice to the president,” Musk said, reinforcing his belief that protectionism hurts global innovation and economic efficiency.
Tesla, which relies heavily on both U.S. and Chinese markets for production and sales, stands to suffer significantly from the new tariffs. The company’s stock dropped more than 2.5% on Monday, closing at $233.29—a loss that adds to a steep 38% decline since the beginning of the year.
Musk vs Trump’s Inner Circle
The rift between Musk and the Trump administration widened over the weekend as the tech mogul took a swipe at Peter Navarro, the White House adviser architecting the tariff plan. Musk mocked Navarro’s academic credentials, stating, “A PhD in Econ from Harvard is a bad thing, not a good thing.”
The White House defended its team, with spokesperson Karoline Leavitt saying, “The President has put together 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.”
This disagreement marks the most significant public split between Trump and Musk—once seen as one of the president’s most high-profile business backers. Musk, who has reportedly donated nearly $290 million to support Trump’s 2024 campaign and GOP allies, was later entrusted with leading the U.S. Department of Government Efficiency (DOGE). But his disillusionment with the administration’s economic stance is increasingly visible.
With Tesla facing cooling demand and mounting criticism over Musk’s political entanglements, the CEO is reportedly under pressure to restore investor confidence. Insiders suggest Musk’s open disagreement may also be tied to his expected departure from the DOGE leadership in the coming weeks.
This is not Musk’s first policy clash with the administration. He has previously voiced concerns about H1-B visa restrictions and DOGE’s rigid fiscal policies.
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