Elon Musk Urges Donald Trump to Lift Global Tariffs as Tesla Faces Mounting Pressure

Billionaire entrepreneur Elon Musk has publicly urged US President Donald Trump to reconsider his aggressive global tariff strategy, warning that such policies could have a long-term impact on American innovation and manufacturing competitiveness.

In a flurry of posts on X (formerly Twitter), the Tesla and SpaceX CEO voiced concerns about the tariffs affecting electric vehicle (EV) production, especially after Tesla was hit hard by retaliatory measures from trading partners such as Taiwan and China. Tesla reportedly sources nearly 70% of its parts domestically, with the remaining imports—primarily from Taiwan—now facing a steep 32% tariff.

Despite his appeals, President Trump, now in his second term as the 47th President of the United States, has so far not reversed the tariff policies. However, according to reports from The Washington Post, Trump has shown openness to reviewing certain aspects of the trade framework after discussions with key industry stakeholders, including Musk.

Musk’s criticism targeted White House trade adviser Peter Navarro, who previously downplayed Tesla’s role in the auto industry by labeling the company a "car assembler" rather than a true manufacturer. Musk didn’t hold back, calling Navarro’s academic credibility into question and referring to him as a “moron,” despite Navarro holding a PhD in economics from Harvard.

Musk's challenge to Trump's policy is significant given his strong political alignment with the Republican administration. The billionaire reportedly invested close to $290 million in support of Trump’s 2024 campaign and related Republican efforts. Moreover, he currently serves in the Trump administration as head of the Department of Government Efficiency (DOGE), a role he assumed to help reduce federal spending and streamline government operations.

However, growing policy disagreements—including on trade tariffs and immigration reform—have cast doubt on Musk's future in the administration. Reports indicate that he may resign from his DOGE role by the end of May, amid internal conflicts over visa policies and economic strategies.

In a separate interview with Italy’s Deputy Prime Minister Matteo Salvini, Musk floated the idea of establishing a “zero-tariff free trade zone” between the US and Europe. He believes that removing trade barriers and enabling labor mobility would be beneficial for both economies.

“I hope both Europe and the United States will eventually agree that a zero-tariff system is the best course of action,” Musk said. “We need to make it easier for people to travel and work across borders if they wish.”

Despite market uncertainty, Tesla’s stock rose slightly amid speculation of Musk’s potential exit from DOGE, reflecting investor optimism that his focus might return fully to Tesla and SpaceX.

As geopolitical tensions and trade wars heat up again, Musk’s intervention adds a high-profile twist to the complex debate over globalization, innovation, and protectionism.