Elon Musk, CEO of Tesla and owner of social media platform X, has reportedly joined the ranks of the most outspoken critics within the business community supporting Donald Trump, openly expressing his opposition to the recent tariffs imposed by the former U.S. president. According to the Washington Post, Elon Musk spoke directly with Trump over the weekend in an attempt to persuade him to reverse these measures, but was unsuccessful.

“I hope he remembers that both Europe and the United States should ideally, in my opinion, move toward a zero-tariff situation,” Musk stated during a video conference with Italian politicians, referring to his vision of a free trade zone between Europe and North America.

It’s worth noting that the new tariffs, reaching up to 34% for China, 20% for the European Union, and over 40% for other Asian countries, represent a trade offensive driven by Trump that has shaken both financial markets and international politics.

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Why is Elon Musk against the tariffs?

Behind Musk’s rejection of the tariffs is his concern about the impact these policies could have on the automotive industry, especially for companies like Tesla that rely on global supply chains. Musk has pointed out that protectionist policies will only drive up prices for American consumers and reduce the global competitiveness of U.S.-based companies.

His friend and fellow investor, Joe Lonsdale, posted on X that he had spoken with members of the Trump administration and warned that “tariffs would hurt American companies more than Chinese ones.”

Additionally, a group of business leaders close to Musk worked over the weekend to form an informal lobbying group aiming to influence Trump’s team and encourage them to adopt more moderate trade policies.

Hrmm.

Guys, I’m not involved in our trade policy, and I get where some of this is coming from – let’s build more at home!

But Ethiopia and Madagascar aren’t going to suddenly start buying billions of dollars of goods from us, and I’m not sure it helps us to punish them for it? https://t.co/ANACFPbach

— Joe Lonsdale (@JTLonsdale) April 3, 2025

What did Donald Trump’s administration say in response to Musk?

The White House wasted no time in responding. Peter Navarro, Trump’s trade advisor and one of the architects behind the tariff strategy, dismissed Musk’s criticism by saying that the billionaire isn’t really a car manufacturer, but an assembler, alluding to Tesla’s reliance on parts from countries like Japan, China, and Taiwan.

“The difference between our vision and Elon’s is clear. We want tires made in Akron, transmissions built in Indianapolis, engines produced in Flint and Saginaw, and we want cars built here, in the United States,” Navarro added, emphasizing the Trump administration’s priority to boost domestic manufacturing.

How do Trump’s tariffs affect the economy and markets?

The implementation of these new tariffs has caused significant instability in the financial markets, particularly on Wall Street. The decline in tech stocks, including Tesla, has been notable. The company’s shares are currently trading at $227.32, well below their 52-week high.

The impact is not limited to Tesla. Jamie Dimon, CEO of JPMorgan Chase, warned that the long-term consequences of these policies could be severe. Hedge fund manager Bill Ackman also sounded the alarm, stating that if the trade approach is not corrected, the U.S. could face an “economic nuclear winter.”

Is Elon Musk stepping down from DOGE?

Amid the tariff controversy, rumors began circulating about Elon Musk potentially stepping down from his position in the Department of Government Efficiency (DOGE), an agency created by Donald Trump to reduce federal spending and streamline bureaucracy. According to a report by Politico, Trump allegedly told close associates that Musk would soon step away to focus on his companies.

According to those sources, the departure wouldn’t be due to conflict but rather a mutual agreement: Musk had fulfilled his role and would continue offering support from a more informal and flexible position.

However, conflicting narratives quickly surfaced. While the White House dismissed the Politico article as “complete garbage,” according to spokesperson Karoline Leavitt, Musk himself responded via X, labeling the resignation reports as “fake news.”

Still, Trump acknowledged recently that while he would like Musk to remain in government “as long as possible,” he understands that the entrepreneur will eventually need to return full-time to his business ventures. As a result, Musk’s future at DOGE remains uncertain amid rising political and trade tensions.

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