Elon Musk Advocates for US-Europe Free Trade Zone Amid Rising Tariffs:

Elon Musk has suggested that the United States and Europe should aim for a zero-tariff system. He said this would create a true free-trade zone across the Atlantic. Musk made the comments in Florence during a meeting with Italy’s Deputy Prime Minister Matteo Salvini.

Musk stated, “Both Europe and the United States should move, ideally, to a zero-tariff situation, effectively creating a free-trade zone.”

Musk’s Stance Contrasts with Trump’s Tariff Strategy

His remarks come shortly after President Donald Trump imposed a 20% tariff on imports from the European Union. The new measures have caused concern in global markets. While Musk is serving temporarily as an adviser to Trump, he has not directly worked on trade policy.

Europe’s Response and Political Tensions

The European Union has indicated a preference for negotiation, but it is also prepared to respond with its own tariffs, including possible taxes on US tech companies and services. Vice President JD Vance has criticized the EU, claiming its leaders are losing touch with voters and values are shifting away from US interests.

Musk’s Criticism of Tariff Proponents

Musk also appeared to criticize Peter Navarro, a former Trump official known for strong pro-tariff views. He questioned Navarro’s credentials and claimed he has never “built anything,” in a post on X.

Limited Impact on Tesla, But Concerns Remain

Tesla, which manufactures vehicles in California and Texas, is less affected by Trump’s auto tariffs than some competitors. However, Musk acknowledged that Tesla’s business in China could be impacted by broader global trade tensions.

Hopes for Stronger US-Europe Relations

Musk also mentioned the need for deeper cooperation between the US and Europe. He said he supports more freedom for people to work across borders, though he didn’t specify if this advice had been given to Trump.

Musk’s Role in Government Nearing Its End

Musk’s temporary role in Trump’s administration is expected to end soon. However, he will likely maintain close ties with the president. Meanwhile, reports suggest that his relationship with Italian Prime Minister Giorgia Meloni has cooled amid concerns over a large Starlink deal.