Elon Musk Advocates for a Zero-Tariff Free Trade Zone, Opposing Trump’s Tariff Policies

Elon Musk, the face of the Trump administration’s Department of Government Efficiency, expressed his desire to establish a "zero-tariff situation" between the United States and Europe, effectively creating a "free trade zone," during a speech on April 5. His remarks come in stark contrast to the recent tariff policies introduced by former U.S. President Donald Trump, which have caused disruptions in global markets.

In a video-linked interview with Italian Deputy Prime Minister Matteo Salvini during a League party conference in Florence, Musk stated,“I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation, effectively creating a free-trade zone between Europe and North America.”

Musk's comments stand in sharp contrast to Trump's recent imposition of a 20% tariff on goods imported from the European Union. The EU has indicated its preference for resolving the issue through negotiations but is prepared to retaliate with countermeasures, including imposing its own tariffs, taxing services, and targeting American tech companies if necessary.

Trump has repeatedly criticized the EU, accusing it of being unfair and claiming that the bloc was created to "screw" the United States. His Vice President, J.D. Vance, has also accused Europeans of being "afraid of their voters" and suggested that European values are diverging from those of the U.S.

Earlier on Saturday, Musk appeared to criticize White House senior official Peter Navarro, who has long advocated aggressive tariff policies. In a series of posts on X, Musk implied that Navarro's Harvard degree was "a bad thing" and questioned his qualifications, noting that Navarro, a former economics professor, "He ain’t built" anything.

Though Musk holds a temporary advisory role within the Trump administration, he has not been directly involved in trade policy. Trump recently stated that Musk would likely step down from his position in "a few months."

Tesla, which manufactures many of its electric vehicles in California and Texas, is less affected by Trump's automotive tariffs compared to other carmakers. However, Musk acknowledged that Tesla’s operations in other countries could still face challenges due to the tariffs.

During his Florence speech, Musk emphasized his hope for deeper partnerships between the U.S. and Europe, along with increased mobility for individuals seeking work opportunities in either region. “This is certainly my advice to the President,” Musk said via video link, although he did not elaborate on whether his recommendations pertained to tariffs, freedom of movement, or both.

Salvini's charm offensive toward Musk comes amid signs of cooling relations between the billionaire and Italian Prime Minister Giorgia Meloni. Bloomberg reported in March that Italy had grown hesitant about a €1.5 billion ($1.64 billion) deal to acquire SpaceX's Starlink system due to significant geopolitical shifts.

After serving a 130-day term as a temporary advisor to Trump, Musk is expected to step down from his role leading the Department of Government Efficiency (DOGE) in the near future, which focuses on cost-cutting measures. However, he is likely to maintain close ties with Trump.