Tech billionaire and DOGE head Elon Musk made direct appeals to US President Donald Trump to reverse sweeping tariffs over the past weekend.
According to a report in Washington Post, which cited sources, Musk’s efforts were unsuccessful.
Highest-profile disagreement between Musk and Trump
The interaction represents the highest-profile disagreement between Musk and Trump, who have until now largely aligned on policy matters. The rift came after the president announced a sweeping 10 per cent baseline tariff on all imports to the United States, alongside steeper duties targeting specific countries.
Both the White House and Musk are yet to respond to the report of Tesla CEO’s request to Trump.
Global marketplummet
The global market on Monday witnessed a meltdown after Trump doubled down on his tariffs and China retaliated with 34 per cent duties on all American products. However, Asian stock markets and US futures staged a sharp recovery on Tuesday, led by a stunning 6 per cent surge in Japan’s Nikkei 225, as global markets began to stabilise after a turbulent session triggered Trump’s tariff threats.
Early Tuesday, China’s commerce ministry vowed to “fight to the end,” promising countermeasures against the proposed tariffs, though without detailing specific steps.
Indian stock indices also opened higher on Tuesday after a bloodbath on Monday. BSE Sensex was at 74,331.00, up 1,193.10 points or 1.63 per cent while the Nifty 50 at National Stock Exchange (NSE) was up 385.50 points or 1.74 per cent at 22,547.10.
Country by country list of new tariffs announced by Trump
Following sharp declines in market, Trump on Monday called for Americans to “be strong, courageous, and patient.”
“The United States has a chance to do something that should have been done DECADES AGO,” Trump said.
“Don’t be Weak! Don’t be Stupid!… Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
Musk’s call for zero-tariff policy
Recently, Musk called for an end to trade barriers between the US and Europe, while speaking virtually at a congress hosted by Italy’s right-wing League Party in Florence, advocating for a zero-tariff policy. The billionaire expressed skepticism about Trump’s tariffs during a video conference with Italian politicians. He emphasised that US tariffs would drive up costs for Tesla, his electric automaker.
“I hope it is 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 said in a video conference .
Tesla reels from fallout
Musk, who has been involved in Trump’s advisory circles and currently leads a government-initiated task force focused on cutting public sector waste, is reportedly facing mounting pressure as Tesla reels from the fallout. The electric carmaker’s sales have taken a hit in recent quarters, with investors concerned about the broader implications of the new tariffs. Tesla shares closed at $233.29 on Monday, down more than 42 per cent since the start of the year.
Several cases of vandalism against Tesla vehicles came to light in recent days, with Musk condemning the acts. Several opponents of Trump and Musk rallied across the US to protest the administration’s actions on government downsizing, the economy, human rights and other issues.
Musk has previously acknowledged the heavy toll of the auto tariffs, calling their impact on Tesla “significant.”
Economists warn the tariffs could trigger inflationary pressure, increase the likelihood of a recession, and push up the cost of living for American families—potentially undermining a central pillar of Trump’s re-election campaign.