Elon Musk, once seen as a strong supporter of Donald Trump, is now publicly speaking out against Trump’s new trade policy. The main reason? Trump’s new tariffs are creating big problems for companies like Tesla that depend on parts from all over the world.
This disagreement is more than just a difference of opinion—it’s shaking up their former alliance and affecting global markets.
What Are the New Tariffs?
On April 2, Trump announced a new plan called “Liberation Day” tariffs. Here’s what it includes:
- A 10% tax on all imported goods.
- Higher taxes on goods from certain countries:
- 34% on products from China
- 20% on products from the European Union (EU)
The idea was to help American factories by making foreign goods more expensive. But instead, it caused stock markets around the world to drop and upset many countries.
Why Is Elon Musk Upset?
Elon Musk strongly disagrees with these new taxes. His companies—especially Tesla—depend on parts and materials from other countries, like lithium from China and car components from Europe.
After the announcement, Musk shared a video of economist Milton Friedman, who supports free trade. Musk used this to show he believes the new rules are bad for the economy and peace.
He also wants zero tariffs between the U.S. and Europe so people and goods can move more freely.
Calling Out the White House
Musk didn’t just disagree quietly. He criticized Peter Navarro, one of Trump’s trade advisers, blaming him for the new tariff policy.
Musk even posted a sarcastic comment on social media:
“In every disaster throughout American history, there always seems to be a man from Harvard in the middle of it.”
Navarro replied, accusing Musk of caring only about Tesla’s profits.
What Do the Tariffs Mean for Tesla?
These tariffs couldn’t have come at a worse time for Tesla. Here’s why:
- Tesla is already dealing with slower electric car sales.
- Competition from Chinese EV makers is increasing.
- The tariffs will make parts and materials more expensive.
- Prices of Tesla cars might rise, making them harder to sell.
Even worse, countries like China and the EU might fight back with their own tariffs, which could hurt Tesla’s business in those areas. This has already impacted Tesla’s stock, which dropped more than 5% shortly after the news.
Trouble for Musk in Washington
Musk used to be very close to Trump. He had special access to the White House and even wore a MAGA hat to Cabinet meetings. People called him the “shadow chief” because of his influence.
But now, things have changed.
White House Press Secretary Karoline Leavitt said Musk will soon stop working in his role as a special government employee once his current project is finished.
Although Trump still says Musk is a “patriot,” some members of Trump’s team are frustrated by Musk’s unpredictable actions, especially with elections coming up.
Conclusion: A Big Shift in a Powerful Partnership
The split between Elon Musk and Donald Trump shows how fast things can change in politics and business. Musk’s companies need global trade to survive, while Trump’s tariffs focus on putting America first—even if it causes tension with the rest of the world. What happens next could affect everything from car prices to international relationships.
FAQ’s
1. Why is Elon Musk against Trump’s tariffs?
Because they make Tesla’s global supply chains more expensive and risky.
2. What did Trump’s tariffs do?
They added taxes to imported goods, especially from China and the EU.
3. How will Tesla be affected?
Tesla’s costs may go up, and its cars could become more expensive to make and sell.
