Musk Advises Trump Against New Tariffs, Cites Economic Concerns

Elon Musk, CEO of Tesla, privately advised President Donald Trump to reverse tariffs that had just been put in place at the weekend, according to a Washington Post report that cites people familiar with the matter. The failed effort shows a growing strain between the two, who had worked together on other things. Musk's contact came after Trump announced a 10% baseline tariff on all imports into the U.S. and higher tariffs on specific countries.

Neither the White House nor Musk responded to requests for comment. Musk, who advises Trump on reducing waste in government spending, has openly called for eliminating tariffs between the U.S. and Europe. He suggested a "zero-tariff" trade zone during a virtual appearance at an event run by Italy's right-wing League Party and said it would improve economic efficiency.

Tesla's sales have dropped this year, with shares declining more than 42% due to criticism about Musk's management of a federal program for cutting costs, the “Department of Government Efficiency.” The company has also suffered from auto tariffs imposed by Trump, which Musk referred to as "substantial" to Tesla's business.

Economists are saying that tariff implementation might drive inflation and raise costs for American families in the thousands of dollars yearly which is a potential political risk for Trump, who effectively ran on the notion of lower prices. Opponents argue that this policy could raise the risks of a recession.