- What’s Happening: Elon Musk, Tesla’s CEO, is personally urging President Donald Trump to ditch aggressive tariffs, especially on Chinese imports, as reported by The Washington Post on April 7, 2025.
- Why Musk Cares: Tariffs hit Tesla hard. The company relies on Chinese parts (like batteries from CATL) for its U.S. cars and its Shanghai factory for global sales. Musk says the cost is “significant.”
- Trump’s Plan: Trump’s pushing a 10% tariff on all U.S. imports, plus extras—50% on Chinese goods, 25% on Canadian/Mexican steel and aluminum—to boost American manufacturing.
- Musk’s Stance: He’s pro-free trade, even pitching zero tariffs between the U.S. and EU on April 6, 2025. Tariffs, he argues, hurt Tesla and consumers more than they help.
- The Tension: Musk and Trump are close allies—Musk leads Trump’s DOGE initiative—but this tariff fight exposes a rift. Tesla’s sued over tariffs before (2020), and Musk’s pushing back again.
- Tesla’s Struggle: Sales are tanking—down 49% in Europe, 13% globally in Q1 2025—partly due to Musk’s Trump ties. Stock’s crashed 40% this year, closing at $233.29 on April 7.
- Trump’s Response: He’s open to talks but doubles down on tariffs, ignoring Musk and other business leaders like Joe Lonsdale who warn of a trade war and higher costs.
- Bottom Line: Musk wants tariffs gone to save Tesla money and growth. Trump wants them to “protect” America. As of April 8, 2025, Trump’s winning this round, and Tesla’s paying the price.
By BHARAT GLOBAL TIME
