The world’s wealthiest individual Elon Musk who leads the Trump administration’s Department of Government Efficiency (DOGE) expressed optimism about achieving “zero-tariff conditions” between the U.S. and Europe on Saturday. He expressed his ideal goal of eliminating tariffs through a free-trade area that would connect Europe with North America during his video appearance at a League party gathering in Florence.
The comments emerged after Trump introduced 20% EU trade tariffs on Wednesday but Musk made an indirect criticism through X on Saturday. Musk attacked Trump trade advisor Peter Navarro by saying “A Harvard Econ PhD is a red flag, not a flex” while also stating “He ain’t built sh*t.” Navarro’s push for protectionism clashes with Musk’s free-trade leanings.
Musk’s Tesla is hurting, though. The European Automobile Manufacturers’ Association reports that European sales dropped 49% during Q1’s initial two months and Italian transport ministry data shows a 7% annual decrease in Italian sales. The negative market reaction stems partly from public discontent with Musk’s appointment to the DOGE because his cost-cutting approach has generated widespread criticism.
The Italian Economy Minister Giancarlo Giorgetti requested “de-escalation” of tariffs on Saturday while noting Italy’s $42.74 billion trade surplus with the U.S. for 2024. The Italian economy experienced 0.5% growth during the previous year thus trade disputes became a major point of discomfort. The zero-tariff proposal from Musk represents a remote possibility against Trump’s policies yet demonstrates internal administration division and potential salvation for Tesla. (Word count: 310)
