Key Points:
- Musk appeals to Trump: Tesla CEO Elon Musk directly urged US President Donald Trump to reconsider sweeping tariffs, but his efforts were unsuccessful.
- Massive financial loss: Musk’s net worth has plunged by $135 billion in 2025, largely due to Tesla’s stock decline amid tariff impacts.
- Global market meltdown: Trump’s tariffs have triggered a global economic crisis, with stock markets across the US, Europe, and Asia plummeting.
- Generative AI and trade policies: Musk advocates for zero-tariff trade policies and warns against the long-term damage of protectionist measures.
- Recession fears grow: Economists predict a 60% chance of a global recession as tariffs disrupt supply chains and increase costs.
New Delhi: Tesla CEO Elon Musk finds himself at the center of a global economic storm as US President Donald Trump’s aggressive tariff policies wreak havoc on markets worldwide. Musk, whose net worth has dropped by $135 billion this year, reportedly made direct appeals to Trump to roll back the tariffs, but his efforts were ignored. The tariffs, which include a potential 50% levy on Chinese imports, have sent shockwaves through global markets, with investors fearing a prolonged trade war and economic slowdown.
Musk’s Struggles Amid Tariff Chaos
Elon Musk has been vocal in his opposition to Trump’s tariff policies. According to reports, Musk privately urged Trump to reconsider the tariffs during direct conversations. Publicly, he shared a video of economist Milton Friedman on social media platform X, emphasizing the benefits of free trade and criticizing protectionist measures.
Despite his efforts, Trump doubled down on the tariffs, escalating them from an initial 34% to a proposed 50% on Chinese goods. The fallout has been severe for Musk’s companies:
- Tesla’s stock has plummeted by over 38% since January.
- The company faces higher costs across its global supply chain and retaliatory measures from China, impacting operations at its Shanghai plant.
Global Market Turmoil
Trump’s tariff policies have triggered a global market meltdown:
- The Dow Jones Industrial Average fell by 1,200 points on Monday, while the Nasdaq dropped 4%.
- Asian markets saw historic declines, with Japan’s Nikkei losing nearly 9% and Hong Kong’s Hang Seng recording its fourth-largest single-day drop.
- European indices like Germany’s DAX and London’s FTSE also suffered significant losses.
Economists warn that these tariffs could push the US into recession while disrupting global supply chains and increasing manufacturing costs. JP Morgan estimates a 60% likelihood of a global recession by year-end.
Musk Advocates for Zero-Tariff Policies
In response to the crisis, Musk has called for zero-tariff trade agreements between the US and Europe. Speaking with Italy’s Deputy Prime Minister Matteo Salvini, he emphasized the need for free trade to foster economic stability. However, his stance has drawn criticism from White House officials like Peter Navarro, who argued that Musk’s views are influenced by his business interests.
Economic Fallout and Recession Fears
The broader economic impact of Trump’s tariffs includes:
- Rising costs for consumers: Economists estimate that US families could face thousands of dollars in additional expenses annually due to higher import prices.
- Stock market losses: Over $6 trillion in market capitalization has been wiped out globally since the announcement of new tariffs.
- Supply chain disruptions: Retaliatory measures from countries like China threaten key industries such as automotive manufacturing.
Despite these challenges, Trump remains steadfast in his approach, describing the tariffs as “necessary medicine” to correct trade imbalances.
Future Outlook
While Musk continues to advocate for free trade and technological innovation as solutions to economic challenges, the immediate outlook remains bleak. Analysts predict that Tesla and other tech companies will face prolonged pressure unless tariff policies are revised or macroeconomic conditions stabilize.
For now, Musk’s clash with Trump highlights the growing tension between business leaders and policymakers amid one of the most turbulent periods in recent economic history.
