Author: Jin Shi Data
Elon Musk stated last Saturday that he hopes to establish a "zero tariff" system between the United States and Europe, which would effectively create a "free trade zone". A few days earlier, tariffs set by US President Trump had caused global markets to fall into chaos.
Musk told Italian Deputy Prime Minister Matteo Salvini: "In my view, it would be best if both Europe and the United States could achieve zero tariffs and establish a free trade zone between Europe and North America."
His speech at a right-wing alliance party rally in Florence was in stark contrast to Trump's global tariff imposition. Since January this year, Musk has been an important advisor to Trump, and before that, he was a major donor to Trump's campaign.
Trump has repeatedly accused the EU of being unfair, claiming that the bloc was established to "destroy" the United States. His Vice President JD Vance accused Europeans of being "afraid of their own voters" and said European values are diverging from those of the United States.
Trump announced last Wednesday a 20% tariff on goods entering the US from the EU. The EU stated that it prefers to resolve through negotiations but is prepared to take retaliatory measures if necessary, including imposing its own tariffs, taxing services, and targeting US tech companies.
Earlier last Saturday, Musk seemed to attack White House senior official Peter Navarro, who has long pursued a maximalist policy on tariffs.
Musk posted a series of replies on X, suggesting that Navarro's Harvard degree was "a bad thing" and that Navarro, a former economics professor who served in Trump's first term, had never built anything.
Musk, who frequently appeared in the Oval Office, held a temporary position in the Trump administration and was not directly involved in trade policy. Trump last week stated that Musk would likely leave the White House "in a few months".
Tesla, which produces many electric vehicles in California and Texas, is less affected by Trump's automotive tariffs compared to other manufacturers. However, Musk stated that Tesla, which has extensive business in other countries, would also feel some pain.
In his speech in Florence, Musk added that he also hopes the US and Europe can establish deeper partnerships and provide greater mobility for those wanting to work in the US or Europe.
He told attendees via video link: "This is certainly my advice to the president." But he did not specify whether these recommendations were about tariffs, freedom of movement, or both.
In recent weeks, just as there were signs that the billionaire's relationship with Italian Prime Minister Giorgia Meloni was cooling, Salvini launched a charm offensive towards Musk.
Bloomberg reported in March that due to major geopolitical changes, Italy had doubts about a planned 1.5 billion euro (1.64 billion USD) purchase of the SpaceX Starlink system.
Musk is expected to step down from his leadership role in the government efficiency department (Doge) after his 130-day temporary advisory period with Trump ends, though he will maintain a close relationship with Trump.
