Musk turns on Trump amid tariff fallout
Elon Musk, once one of Donald Trump’s most high profile allies, is now publicly breaking ranks with the President over a new wave of tariffs.
Once lauded by Trump as a “patriot”, and trusted with a role in streamlining the federal government, Musk is now casting doubt on the administration’s economic direction, openly challenging the President’s flagship tariffs policy.
On April 2, Trump unveiled what he dubbed ‘Liberation Day’ tariffs: a sweeping executive order slapping a 10 per cent baseline tax on all imports, and much steeper penalties for strategic rivals – 34 per cent on China, 20 per cent on the EU.
The move, pitched as a patriotic push to restore US manufacturing, sent global markets into freefall and triggered instant backlash from international partners.
What’s more, it has introduced a rift between the former allies.
Tesla clashes with Trump’s trade war
Musk, whose companies rely heavily on global supply chains – from European auto components to lithium refined in China – wasted no time showing his disapproval.
In response to the tariff announcement, Musk took to social media to express his concerns, sharing a video of economist Milton Friedman discussing the importance of free markets and international cooperation.
“The magic of the price system”, Friedman says in the clip “is essential – not only for efficiency, but for peace.”
The subtext was clear, and so was Musk’s message. Trump’s tariffs aren’t just bad economics, they’re bad diplomacy.
Musk has also called for a “zero tariff situation” between the US and Europe, which he argued would create a “de facto free trade zone”.
“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” said the world’s richest man, subtly pushing for freer movement of labour, too.
He confirmed he had personally shared those views with the President.
Musk didn’t stop at policy, taking direct aim at White House trade adviser Peter Navarro, whom he holds responsible for the current tariff strategy.
Posting on X, Musk mocked Navarro’s economic expertise: “In every disaster throughout American history, there always seems to be a man from Harvard in the middle of of it”.
Navarro fired back by accusing Musk of self interest, given Tesla’s dependency on globally sourced manufacturing.
Impact on Tesla
Trump’s tariffs come at a precarious time for Tesla, which is already grappling with a slowdown in EV sales, as well as increased competition from Chinese manufacturers.
The added costs of tariffs on key imports – including batteries and rare materials – threaten to erode margins and jack up vehicle prices.
Worse still, the EU and China are both weighing retaliatory tariffs that could strike back at Tesla’s own exports and foreign operations.
Investors have already taken notice, as Tesla’s stock fell by over five per cent in the days following Trump’s announcement, with Musk’s personal future shedding billions.
And, with EU leaders warning of a trade war and Beijing reportedly eyeing Tesla’s Shanghai plant as a pressure point, the globalist reality of Musk’s empire is colliding with Trump’s new tariffs.
The Trump-Musk split
Once hailed as the head of government “efficiency” and granted near-unfettered access to the West Wing, Musk’s time in Washington seems to be coming to an end.
The former Trump darling – who once wore a MAGA hat to Cabinet meetings, and was so close to the President he was nicknamed “the shadow chief” – is expected to step back as “special government employee” in the coming weeks.
The White house press secretary Karoline Leavitt’s recent social media post recently confirmed: “Elon will depart from public service as a special government employee when his incredible work at DOGE is complete”
Though Trump still praises Musk as a “patriot” and continues to tout his controversial DOGE initiative, frustration has grown behind the scenes of Musk’s unpredictability.
His rogue commentary, unvetted policy blasts on X, and a failed $5m effort to swing a Wisconsin Supreme court race have soured some allies and spooked Trump’s team heading into a volatile election season.
“They think he’s a genius”, said one senior Trump adviser. “But he’s a one-man wrecking ball.”