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Elon Musk and Donald Trump’s Relationship Hits a Turning Point Over Tariffs
During the presidential elections, the Tesla CEO donated millions of dollars to the Republican politician's campaign and Trump shifted his perspective on EVs, by backing them to the extent that the US president even bought one for his own personal use, according to Fortune.However, things are starting to change and their relationship might soon get strained over Trump's high tariff plan to impose on all countries it trades with.
After Trump announced the tariffs, Musk's net worth fell as Tesla's share price is down 38.5% for the year to date, falling to $233.29 from its record high in December of $479.86, reported Fortune.
Not just tariffs but Tesla has already suffered due to Musk's relationship with Trump since the start of the US president's second term. Tesla customers have boycotted the brand and there have been reports of vandalism of Tesla sites and vehicles, as per the report.
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Musk Pushes for Free Trade
During an interview with Italy's deputy prime minister, Matteo Salvini, Musk said, "I'm hopeful for example with the tariffs…that at the end of the day…it is agreed that Europe and the U.S. should move, ideally in my view, to a zero tariff situation—effectively creating a free trade zone between Europe and North America," quoted Fortune.The DOGE head also claimed that there should be freedom for labour to move between the countries so that people could choose where they wanted to work, he mentioned, "That has certainly been my advice to the president," as quoted in the report.
Musk’s Public Critique of Trump’s Advisor
Musk even went on to mock Trump's top trade advisor Peter Navarro, who was also one of the key figures in the tariff agenda, as per Fortune. On social media platform X, a video of Navarro shows the advisor explaining the tariff policy, qualified his opinion courtesy of an Ivy League degree, according to the report. But Musk reacted to the video by saying, "A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem," quoted Fortune.FAQs
What did Musk advise Trump about tariffs?Musk suggested to Trump that the US and Europe should move toward zero tariffs to create a free trade zone.
How has Tesla’s stock performed recently?
Tesla’s stock has taken a significant hit, dropping 38.5% in 2025, largely attributed to the uncertainty created by tariff wars, as reported Fortune.
