In a surprising break from former President Donald Trump’s aggressive trade policy, tech mogul and Tesla CEO Elon Musk has publicly advocated for a “zero-tariff situation” between the United States and Europe, calling for a new era of economic cooperation and open borders.
Speaking via live stream at The League Congress—an event hosted by Italy’s right-wing Deputy Prime Minister Matteo Salvini—Musk expressed a clear preference for a free trade zone between North America and Europe.
“I hope it is 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 said.
He further expanded on the idea by advocating for increased labor mobility across continents.
“That’s what I hope occurs, and also more freedom of people to move between Europe and North America if they wish, if they wish to work in Europe or wish to work in America, they should be allowed to do so, in my view. So that has certainly been my advice to the president,” he added.
The comments come at a critical moment as Trump announced new sweeping tariffs this past week, targeting multiple foreign trade partners including the European Union. Under his revised economic policy, the U.S. is set to impose a 20% tariff on EU imports, prompting strong reactions globally.
Financial markets responded harshly to Trump’s tariff announcement. On Thursday, the S&P 500 index fell nearly 5 per cent, the Dow Jones Industrial Average dropped 4 per cent, and the Nasdaq plummeted 6 per cent—one of the steepest declines seen since the early days of the COVID-19 pandemic in 2020.
At a White House event where he formally announced the tariff hike, Trump doubled down on his position, stating, “The United States has been ‘looted, pillaged, raped and plundered’ by other countries’ trading policies,” and heralded a new era as “the golden age of America.”
Trump continued his defense of the tariffs on Truth Social over the weekend, writing, “China and many other nations, have treated us unsustainably badly. We have been the dumb and helpless ‘whipping post.’ THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic. We will, MAKE AMERICA GREAT AGAIN!!!”
European leaders have not taken Trump’s announcement lightly. Ursula von der Leyen, President of the European Commission, responded on X (formerly Twitter), stating: “Europe is prepared to respond. We’ll always protect our interests and values. We’re also ready to engage. And to go from confrontation to negotiation.”
While Musk has been a close adviser to Trump, his recent statements reflect a significant policy divergence on trade. As the global economic community watches closely, Musk’s advocacy for free trade and open borders could become a major talking point in shaping the next phase of US-Europe economic relations.
The White House and Musk’s representatives have not yet issued any official follow-up statements.
