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Musk Urges US, Europe to Establish Zero-Tariff Free Trade Zone

Elon Musk expressed a desire for a “zero-tariff” system between the United States and Europe, which he believes would effectively establish a “free-trade zone.” Musk shared this vision on Saturday, shortly after tariff measures imposed by U.S. President Donald Trump caused disruption in global markets.

In discussions with Italian Deputy Prime Minister Matteo Salvini at an event for the right-wing League party in Florence, Musk suggested that both Europe and the United States should ideally aim for a zero-tariff scenario to facilitate free trade between Europe and North America. These comments contrast with Trump’s global tariff impositions. Musk has been a significant adviser to the administration since January and was previously a notable campaign contributor.

Trump has frequently criticized the European Union, alleging unfairness and suggesting that the bloc was established to undermine the United States. Vice President JD Vance has also criticized European leaders, accusing them of avoiding their electorates and claiming that European values are diverging from those in the U.S.

Earlier in the week, Trump announced a 20% tariff on goods imported from the European Union as part of a broader array of trade tariffs affecting nearly all countries. The EU has expressed a preference for negotiating a resolution but has prepared to respond with countermeasures, including imposing tariffs, taxing services, and targeting U.S. tech firms.

On Saturday, Musk appeared to critique Peter Navarro, a senior White House official known for advocating stringent tariff policies. Through a series of responses on the platform X, Musk insinuated that Navarro’s educational background, including a Harvard degree, was detrimental and criticized Navarro, a former economics professor and previous Trump administration official, for his lack of practical business experience.

Although a frequent visitor to the Oval Office, Musk’s role in Trump’s administration is temporary, and he has not been directly involved in shaping trade policy. Trump indicated that Musk might leave the White House in a few months.

Tesla Inc., the company he leads, primarily manufactures its electric vehicles in California and Texas, making it somewhat less vulnerable to Trump’s automotive tariffs that took effect recently. However, Musk acknowledged that Tesla, which has substantial operations in China, may still be affected.

During his remarks in Florence, Musk expressed hope for an enhanced partnership between the U.S. and Europe and greater freedom for individuals seeking employment in either region. He mentioned providing this advice to the president but did not specify whether it pertained to tariffs, freedom of movement, or both.

Salvini has been attempting to strengthen relations with Musk, amid indications that Musk’s relationship with Italy’s Prime Minister Giorgia Meloni has cooled. Bloomberg reported in March that Italy reconsidered a planned €1.5 billion ($1.64 billion) deal involving SpaceX’s Starlink system due to significant geopolitical changes.

Musk is expected to resign from his role in the Department of Government Efficiency after his 130-day term as a temporary adviser to Trump, though he is anticipated to maintain a close association with the president.

This article was initially published on Fortune.com.

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