New Delhi: Elon Musk, the CEO of Tesla, has been trying to convince former U.S. President Donald Trump to roll back big tariff hikes that have stirred up a lot of backlash and affected global trade. These tariffs, originally brought in by Trump, are some of the highest in U.S. history, reaching up to 50% for some countries. Musk’s efforts show the growing clash between big tech leaders in Silicon Valley and political forces pushing for more protectionist, America-first policies.
According to people familiar with the situation, Musk personally reached out to Trump to ask him to reconsider the tariff increases. But so far, it looks like Trump isn’t budging. Despite pressure from business and tech leaders, Trump has stayed firm on his protectionist stance.
Musk wasn’t alone, he joined other top business figures in quietly pushing for more balanced trade policies. They hoped to form a sort of informal alliance to influence Trump’s team. Some thought Treasury Secretary Scott Bessent might be able to help shift Trump’s views. But Commerce Secretary Howard Lutnick, a strong supporter of protectionist policies, made that more difficult.
What this mans for Tesla
These high tariffs are causing real problems for Tesla. Experts say Tesla’s sales have slowed recently, partly because Musk has become more politically outspoken. Dan Ives from Wedbush Securities described the situation as a “brand crisis tornado,” saying it’s now a full-blown “F5 tornado.” Tesla’s stock reflects that chaos, it dropped more than 2.5% recently and is down over 38% since the start of the year.
Musk fires back publicly
Musk hasn’t held back in criticizing the people behind these trade policies. He took aim at Peter Navarro, one of Trump’s top trade advisors, questioning Navarro’s economics degree from Harvard. Musk joked on social media that having a Harvard Ph.D. in economics might actually be a bad thing. Navarro didn’t respond, but the White House backed its team, saying they’re committed to carrying out Trump’s decisions.
Besides private talks, Musk has been promoting free trade on social media. He even shared a video of famous economist Milton Friedman explaining why international trade is a good thing, using the example of how a pencil is made. Musk also talked with Italy’s Deputy Prime Minister, Matteo Salvini, about his hopes for zero tariffs between Europe and the U.S. and open borders for skilled workers.
This fight between Musk and Trump isn’t just about money, it highlights a bigger split between tech leaders and the political figures they once supported. Musk, who has business ties in both the U.S. and China, sees these tariffs as harmful to his companies and to global trade overall.
Now that Musk is reportedly preparing to step back from his advisory role in Trump’s circle, the whole situation shows how tense things have gotten between pro-business and pro-nationalist forces. These tariffs could end up reshaping not just Tesla’s future, but also global trade, especially as the next U.S. election could bring even more changes to the world economy.
