Elon Musk has criticized Donald Trump's tariff policies and personally tried to convince him to drop new tariffs on imports from China. Despite this, Trump has threatened to impose an additional 50% tariff, adding to the recently announced 34%, The Washington Post reports.
Musk, who heads Tesla, believes the tariffs are harmful to international trade and his own business, as the company has large markets in both the US and China.
Musk has publicly criticized White House trade adviser Peter Navarro, questioning his qualifications. He has also said he favors a free trade zone between the United States and Europe and greater freedom of movement for workers between continents. Musk has previously spoken out against tariffs, and in 2020 Tesla even filed a lawsuit against the Trump administration's tariff policies, although Musk himself later distanced himself from the decision due to political criticism.
Many business people who supported Trump are frustrated with his tariff policies. Some, including Musk’s friends, have tried to influence the administration to adopt a more moderate trade strategy. Investor Joe Lonsdale, for example, has noted that the tariffs are hurting American companies more than Chinese ones.
The tariff conflict comes as demand for Tesla's products has fallen and its shares have fallen more than 38% since the beginning of the year. Analysts believe Musk's political activism is negatively affecting the brand.
Musk later attempted reconciliation by supporting the U.S. Trade Representative's official statement on unfair trade practices. Incidentally, Musk's brother Kimbal also criticized Trump for "hidden taxes" on consumers.