Elon Musk Advocates for U.S.-Europe Free Trade

Tech billionaire Elon Musk called for the elimination of trade barriers between the United States and Europe, proposing a tariff-free economic zone during a video appearance at a conference hosted by Italy’s far-right League party on Saturday.

His remarks came just days after U.S. President Donald Trump announced sweeping tariffs on imports, including a 20% levy on goods from the European Union—a move that has sparked fears of a global trade war.

Musk Pushes for Zero Tariffs and Free Movement

Speaking to League leader Matteo Salvini, Musk argued that both regions should strive for a fully open trade relationship.

"Ideally, both Europe and the United States should move to a zero-tariff situation, effectively creating a free trade zone between Europe and North America," Musk said.

He also endorsed greater freedom of movement, stating, "If people wish to work in Europe or wish to work in North America, they should be allowed to do so, in my view." Musk added that he had shared this stance with Trump.

The Tesla and SpaceX CEO has previously expressed support for right-wing European parties, including Salvini’s League, Italian Prime Minister Giorgia Meloni’s Brothers of Italy, and Germany’s Alternative for Germany (AfD).

Global Backlash and Economic Concerns

Musk’s comments contrasted sharply with Trump’s recent tariff announcements, which triggered a sharp sell-off in U.S. and global markets. Stocks recorded their worst two-day decline since the COVID-19 pandemic, with economists warning of potential supply chain disruptions and a broader economic slowdown.

The EU has vowed to respond "in a calm, carefully phased, unified way," according to Trade Chief Maroš Šefčovič. Meanwhile, Italy’s Economy Minister Giancarlo Giorgetti, a League member, urged de-escalation, cautioning against retaliatory measures.

Trump has defended the tariffs as part of an "economic revolution" to revive U.S. industry. However, critics argue the measures risk triggering a damaging trade war, with China already imposing retaliatory tariffs of up to 34% on U.S. goods.

EU Commission President Ursula von der Leyen reiterated the bloc’s willingness to negotiate but warned of "proportionate countermeasures" if necessary. The escalating tensions have raised concerns over global economic stability, with analysts warning of potential recessions in affected nations.

As leaders weigh their responses, Musk’s vision of a tariff-free Atlantic partnership remains at odds with the current trajectory—one increasingly defined by protectionism and economic confrontation.