- 🇺🇸 Donald Trump announced today that there will be a 20% levy on goods and services imported from the EU, effective next Wednesday. The President believes that international partners are exploiting the USA, given the substantial import surplus over exports. Critics worldwide, including economists, have heavily criticized this move, leading to stock market plummets.
- 🌌 Elon Musk voiced his opinion on the matter during an unforeseen video appearance at the Federal Congress of the League in Florence. He underlined the necessity for both the U.S and Europe to dispose of import duties, thereby fostering a free trade zone. This stance contradicts Trump's decision, which is part of a broader strategy to impose tariffs on almost every country [1][3].
- 🏃 Musk’s Concerns: The SpaceX and Tesla CEO has faced financial setbacks due to market turbulence triggered by Trump's tariffs, which also affect Tesla's reliance on imported parts [2]. Musk has taken to social media to air his grievances about trade policies, even criticizing Trump's trade advisors like Peter Navarro, a staunch proponent of the tariff plan [2]. Despite his critique, Musk supports other Trump policies, highlighting his multifaceted role as both an advisor and a businessman [2].
Advocates Musk for establishment of trade liberty region uniting North America and Europe. - North American and European Regions Advocate for an Open Trade Partnership
💡 Insight: Elon Musk, renowned businessman and advisor to President Donald Trump, is advocating for a zero-tariff situation between North America and Europe in retaliation to Trump's recent tariff imposition on the EU. This suggestion entails the establishment of a fledgling free trade zone.
- Despite the Commission's proposal for a common system of taxation for certain types of vehicles, Elon Musk, in contrast to President Trump's tariff impositions, has advocated for the abolishment of import duties to foster a free trade zone between North America and Europe.
- Musk's concerns are rooted in the adverse impact that tariffs have on his businesses, such as SpaceX and Tesla, which rely heavily on imported parts, especially in the context of the upcoming 20% levy on goods and services imported from the EU.
- However, it remains to be seen whether the Commission's proposed regulation on the introduction of a common system of taxation for vehicles, prompted by Musk's push towards a tariff-free zone, will be sufficient to counterbalance Trump's trade policies in the long run.
