Musk advocates for zero-tariff deal between Europe, US amid trade tensions

Elon Musk, the world’s richest individual and head of the Trump administration’s Department of Government Efficiency, expressed his hope for a "zero-tariff situation" between Europe and the US during a video-link interview.

His remarks come amid escalating trade tensions following President Donald Trump's announcement of a 20 per cent tariff on goods from the EU, Caliber.Az reports via foreign media.

Speaking at a League congress in Florence with Matteo Salvini, Italy’s deputy prime minister and leader of the far-right League party, Musk said, “At the end of the day, I hope it’s 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’s comments align with his vision of closer economic ties between the two continents, advocating for the reduction of trade barriers. However, they also come in the wake of the Trump administration’s recent push for higher tariffs on European goods, which has sparked concern among global businesses. 

On the same day, Musk took to his social media platform, X, to criticize Peter Navarro, Trump’s senior counselor for trade and manufacturing, who has been a staunch supporter of the tariffs. “A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk posted about Navarro’s academic credentials. 

While Musk has continued to push for trade reforms, his own company, Tesla, has been facing challenges, particularly in Europe. Sales have dropped significantly in recent months, partly due to Musk’s cost-cutting role with the Department of Government Efficiency. 

According to the European Automobile Manufacturers’ Association, Tesla sales in Europe plummeted by 49 per cent during the first two months of the current quarter. In Italy, where Tesla has a significant market presence, the company’s first-quarter sales were down 7 per cent compared to the same period last year, according to the country’s transport ministry. 

Amid these developments, Italian Economy Minister Giancarlo Giorgetti spoke about Italy’s desire to ease the tension over tariffs with the US. Italy, which reported a trade surplus of approximately 39 billion euros ($42.74 billion) with the US in 2024, is aiming for a “de-escalation” of trade tensions. Italy’s economy grew by just 0.5 per cent in 2024 compared to the previous year, with sluggish growth contributing to concerns over the ongoing tariff battle’s economic impact.

On April 2, Trump imposed a 20 per cent tariff on EU member states. In addition, a 34 per cent tariff has been set for several other countries, including China and Vietnam, while India faces a 26 per cent tariff. These new tariffs will take effect starting April 9.

By Naila Huseynova