Elon Musk did not fully back President Donald Trump’s new trade tariffs and had reportedly made personal appeals to reverse the administration’s latest economic strategy. According to the Washington Post, the Tesla CEO criticized the policy both publicly and behind the scenes, asking the US president to consider international cooperation instead.
Over the weekend, Musk used his social media platform, X, to lambast White House trade adviser Peter Navarro and to post a video of economist Milton Friedman advocating free market policies.
Yet, while Musk took a public dig at the White House trade advisor, he also quietly reached out directly to Trump, asking him to reconsider the tariffs, according to two people familiar with the matter.
Musk’s plea supposedly fell on deaf ears, as on Monday, Trump threatened to introduce an additional 50 percent tax on Chinese imports if the nation doesn’t “withdraw its retaliatory measures.”
Trouble in Washington over tariff policy
Billionaire Musk has backed Trump since his campaign days, funneling nearly $290 million into his and other Republican campaigns during the 2024 election cycle. However, with Tesla’s operations deeply entwined with both US and Chinese markets, businessmen could see protectionist trade policies as a threat to their businesses.
Last Saturday, through an X post, Musk publicly mocked Navarro, the architect of Trump’s tariff strategy, after the latter said he doesn’t understand tariffs because “he just sells cars.”
“A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk remarked. Navarro has yet to make any comments on the matter.
In an interview with Italian Deputy Prime Minister Matteo Salvini, the Tesla CEO said that he wanted a free trade zone between the US and Europe.
“At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally… to a zero-tariff situation. That has certainly been my advice to the president.”
Still, White House Press Secretary Karoline Leavitt has defended the administration’s policy, stating, “The President has put together a remarkable team of highly talented and experienced individuals who bring different ideas to the table…That’s why this Administration has done more in two months than the previous Admin did in four years.”
Not a fan of tariffs at all
In Trump’s first term, Tesla filed a lawsuit seeking to reverse tariffs on its Chinese imports. Though Musk initially backed the lawsuit, insiders say he lashed out at staff for filing it in the end, fearing being bashed by Trump-aligned voices on social media.
Business leaders and tech investors who supported Trump’s campaign were caught off guard by the severity of the tariffs and disappointed by their lack of influence over the administration’s final decision.
Among them was investor Joe Lonsdale, a Musk ally, who confirmed he had warned administration insiders that the tariffs would damage American firms more than their Chinese competitors.
Over the weekend, a group of executives began organizing an informal lobbying effort to persuade Trump to soften his stance. According to one participant, they had hoped Treasury Secretary Scott Bessent would be able to rein in the more extreme policy elements.
Still, they were surprised by the influence of Commerce Secretary Howard Lutnick, a Musk contact, who became a proponent of protectionism.
Dan Ives, an analyst at Wedbush Securities and a longtime Tesla supporter, downgraded the company’s stock price target from $550 to $315.
“Tesla has essentially become a political symbol globally…and that is a very bad thing for the future of this disruptive tech stalwart and the brand crisis tornado that has now turned into an F5 tornado,” Ives wrote.
Tesla’s stock dropped more than 2.56% in Tuesday’s US pre-market session after closing the start of the business week at $233.29 per share. So far this year, it has lost 38.49% of its value.
“Who would have thought that Trump was actually the most high tax American President in generations,” wrote Musk’s brother and Tesla board member Kimbal Musk, on X. “A tax on consumption also means less consumption. Which means less jobs. Which in turn leads to less consumption. And then even less jobs.”
Later Monday, Elon Musk said a thread from the US Trade Representative official X account had “good points,” claiming tariffs were necessary because of unfair trade practices affecting US exporters.
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