Priyanka Tiwari
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Elon Musk, CEO of Tesla and an adviser to U.S. President Donald Trump, reportedly made a direct appeal over the weekend to reverse newly imposed U.S. tariffs. According to the Washington Post, the request was unsuccessful. The report noted that this represents the most significant public disagreement between Musk and Trump so far.
The new trade policy includes a 10% baseline tariff on all U.S. imports, along with increased duties on several countries. The White House and Musk did not respond to media requests for comment.
Virtual Plea for Zero Tariffs with Europe
Speaking virtually at a congress hosted by Italy’s League Party, Musk advocated for zero tariffs between the U.S. and Europe, emphasizing the economic strain caused by protectionist measures. Musk, who is currently working on cutting inefficient public spending through his role in the Department of Government Efficiency, warned that these tariffs could harm key industries.
Tesla Faces Declining Sales and Stock Value
Tesla has been under pressure, with a significant drop in quarterly sales and a continued decline in stock value. The company's shares closed at $233.29 on Monday, reflecting a 42% drop year-to-date.
This has directly impacted Musk’s personal wealth. According to the Bloomberg Billionaires Index, Musk's net worth fell to $297.8 billion, dropping below $300 billion for the first time since November. On Monday alone, he lost $4.4 billion, following a $31 billion decrease in wealth over the previous two trading days. His total loss for the year has reached $134.7 billion.
Economic Impact and Inflation Concerns
Musk has previously acknowledged that Trump’s tariffs, particularly those affecting the auto sector, pose a "significant" challenge for Tesla. Economists warn that these trade policies could fuel inflation, increase the likelihood of a recession, and add thousands of dollars to the average U.S. household’s annual expenses. These concerns could undermine Trump’s public promise to reduce the cost of living.
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