Elon Musk, tech billionaire and adviser to US President Donald Trump, has publicly advocated for a tariff-free economic zone between the United States and Europe.
Speaking via video link at a conference hosted by Italy’s far-right League party in Florence, Musk emphasized the need for unrestricted trade and labor mobility between the two regions.
“Ideally, both Europe and the United States should move to a zero-tariff situation, effectively creating a free trade zone between Europe and North America.”
Musk’s comments came just days after Trump announced plans to impose 20% tariffs on imports from EU member states, including Italy, which has a significant trade surplus with the US. The tech mogul argued that a zero-tariff situation would ideally create a free trade zone between Europe and North America, allowing people to work freely on either side of the Atlantic.
“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,”
he said, noting that he had shared this stance with Trump
This stance is likely driven by Musk’s business interests, particularly with companies like Tesla, which rely on smooth global supply chains. Tariffs could disrupt these operations and impact the company’s bottom line.
Musk’s public split with Trump on trade policy is significant, given their close relationship. The rift between Europe and United States may have implications for US trade policy, as well on US economy as well as it may obviously impact tech billionaires like Musk.
In response to Trump’s tariff announcement, the European Union has pledged to respond “in a calm, carefully phased, unified way”. Several nations have also threatened retaliation, raising concerns of a global trade war.
As the situation unfolds, it remains to be seen whether Musk’s advocacy for a tariff-free zone will influence US trade policy.