Elon Musk, head of the Department of Government Efficiency under Donald Trump's second presidential term, has openly challenged the current administration's tariff policies. Speaking via video link at the Italian League party's congress in Florence, Musk proposed establishing a free trade zone between the United States and Europe, promoting "zero tariffs" and enhanced labor mobility across the two continents.
This statement comes just days after President Trump imposed a 20% tariff on imports from the European Union, escalating global trade tensions. Musk shared his vision for a tariff-free relationship, hoping that both Europe and the U.S. would agree to advance toward a zero-tariff environment, thereby fostering a free trade area between Europe and North America.
Beyond his trade stance, Musk highlighted the significance of easing labor mobility between Europe and the U.S., emphasizing that "people should be able to work in Europe or North America if they choose to." He noted that this was his "advice to the president," as reported by Efe.
The response from the White House was swift. Peter Navarro, Trump's top trade advisor and architect of the current tariff strategy, dismissed Musk's criticism, suggesting the businessman was looking out for his own commercial interests. Navarro stated that "Musk is worried about his supply chain, which heavily relies on parts from countries like China, Mexico, Japan, and Taiwan."
On the European front, Ursula von der Leyen, President of the European Commission, announced that the EU is ready to negotiate a free trade agreement based on the "zero for zero" principle: zero tariffs, zero subsidies, and zero non-tariff barriers for industrial products. According to a statement released Monday, Brussels has already reached out to Washington to initiate technical talks aimed at formal negotiations. The EU also warned that if no progress is made, it is prepared to implement proportional countermeasures, underscoring its stance against unilateral actions.
Amid this trade dispute, rumors have emerged regarding Musk's potential departure from his current role at DOGE. Sources close to the White House indicated that Trump has informed his inner circle and cabinet members that Musk might step down in the coming weeks. However, Press Secretary Karoline Leavitt dismissed these reports as "nonsense," without directly refuting the claims made by columnist Rachael Bade in Politico.
Musk's criticisms also reflect growing unease among major U.S. tech entrepreneurs. According to El Confidencial, the recent wave of tariffs has resulted in stock market losses exceeding $1 trillion in the first quarter of 2025. The most affected are tech billionaires, including Musk, Jeff Bezos, and Tim Cook, whose companies are deeply intertwined with international supply chains and markets.
The volatility spurred by tariff policies has shaken investor confidence, leading to a wave of adjustments in growth projections for key Nasdaq-listed firms. In this climate, Musk's call for free trade is seen not only as a political stance but also as an effort to curb the financial hemorrhage facing many U.S. companies with a global footprint.
Key Questions about Elon Musk's Free Trade Proposal
What are Elon Musk's views on US-Europe free trade?
Elon Musk advocates for a free trade zone between the United States and Europe, with zero tariffs and enhanced labor mobility between the continents.
How has the White House reacted to Musk's proposal?
The White House, through advisor Peter Navarro, dismissed Musk's criticisms, suggesting that Musk is protecting his own business interests related to his supply chain.
What is the European Union's stance on free trade with the U.S.?
The EU, led by Ursula von der Leyen, is open to negotiating a free trade agreement with the U.S. based on the principle of zero tariffs, zero subsidies, and zero non-tariff barriers for industrial goods.