This recent exchange signifies the most notable conflict between President Trump and Elon Musk, according to a report. The discord comes on the heels of Trump's announcement of a new 10% baseline tariff on all imports to the United States, alongside increased duties affecting numerous other countries. This move has sparked considerable debate among industry leaders and economists alike.
As of now, both the White House and Musk have not provided any immediate comments in response to inquiries from Reuters. Musk, who serves as an adviser to Trump and is deeply involved in efforts to cut down on wasteful U.S. public spending, recently advocated for a zero-tariff policy between the United States and Europe. He made these remarks during a virtual engagement at a congress hosted by Italy's right-wing League Party over the weekend in Florence.
Tesla, the electric vehicle manufacturer headed by Musk, has experienced a sharp decline in its quarterly sales. This downturn is largely attributed to backlash against Musk's initiatives with the newly established Department of Government Efficiency. As of the last trading session on Monday, Tesla's shares were valued at $233.29, representing a staggering drop of over 42% since the start of the year.
Musk has previously highlighted the significant impact of President Trump's auto tariffs on Tesla's operations. Economists warn that these tariffs could potentially reignite inflation, escalate the risk of a U.S. recession, and significantly increase costs for the average American family—possibly by thousands of dollars. This poses a considerable risk for a president who prioritized reducing the cost of living during his campaign.
As tensions rise between the Trump administration and Musk, the implications of these tariff policies could reverberate throughout the economy. Stakeholders from various sectors will be closely monitoring how these developments unfold and their potential impact on both Tesla and the broader U.S. market.
Reporting by Anusha Shah and Kanjyik Ghosh in Bengaluru.
