Elon Musk Promises Zero Tariffs Between U.S. and Europe Amid Trade Tensions

ROME, Italy — Elon Musk, the billionaire advisor to U.S. President Donald Trump, stated on Saturday that he hopes the United States and Europe can establish a “very close and stronger partnership” with zero tariffs. Musk made his remarks during a videoconference at the Northern League party congress, led by Italian Prime Minister Giorgia Meloni.

During the conference, Musk expressed his vision for a free trade area between Europe and North America, emphasizing, “I hope it is agreed that both Europe and the United States ideally move to a zero-tariff situation, effectively creating a free trade zone between Europe and North America.”

Musk’s comments come at a time when trade relations are tense due to the recent implementation of tariffs by the Trump administration that have sparked widespread concern among international trading partners. The tariffs include a 10% tax on imports into the U.S. and a 20% tax on imports from the EU.

His vision of open borders for labor between regions contrasts sharply with the rhetoric from political leaders in Italy, including Meloni and Salvini, who have focused on anti-immigration policies. As Musk, who owns Tesla and SpaceX, navigates through the complexities of government efficiency, his views diverge significantly from Trump’s hardline stance on trade.

Following the announcement of new tariffs, U.S. markets saw a decline not witnessed since the COVID-19 pandemic, with predictions of economic repercussions. Trump criticized China, stating, “China made a mistake, panicked, the one thing they cannot afford,” through a social media post.

European Commission President Ursula von der Leyen reiterated the EU’s commitment to negotiate with the U.S., expressing deep concern over the tariffs and their implications for global commerce. “The tariffs announced by President Trump pose risks for all countries and have direct and indirect impacts,” von der Leyen stated.

Economists warn the new tariffs could lead to a contraction in global trade and might push various economies toward recessions, including that of the U.S. Following Trump’s announcement, world oil prices plummeted, and the dollar experienced sharp declines.

Trump has promised that these tariffs would boost the U.S. economy by encouraging investments and job creation, but they have faced backlash from international leaders. The leaders of France and the U.K. have indicated that retaliation could be expected. “Nothing should be off the table in response to these tariffs,” they declared during a conversation.

As Wall Street faced sharp declines following the tariff news, analysts highlighted the potential for long-term economic challenges, with the tariffs marking the most aggressive trade restrictions since the Smoot-Hawley Tariff Act of 1930. According to Oxford Economics, the average effective tariff rate in the U.S. could reach 24%, surpassing levels seen in the 1930s.

In a sign of potential discord between Trump and Musk, the latter’s proposal for a zero-tariff trade agreement seems to conflict with Trump’s administration strategy of imposing high tariffs as leverage in trade negotiations. Musk’s comments were made during discussions with Salvini, also underscoring the diverging views within U.S. trade policy.