Just two days after President Donald Trump imposed sweeping reciprocal tariffs on major trading partners&mdash;including a planned 20% levy on European Union imports&mdash;tech billionaire Elon Musk made a pointed call for a &ldquo;zero tariff&rdquo; trade regime between the U.S. and Europe. His comments, coming amid fears that Trump will use tariffs as a bargaining chip in future negotiations, are being interpreted as a subtle alignment with investor anxieties rather than a direct rebuke.
&ldquo;I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zerotariff situation&mdash;effectively creating a free trade zone between Europe and North America,&rdquo; Musk said Saturday during a speech at Italy's "League Congress," hosted by right-wing Deputy Prime Minister Matteo Salvini. Musk added that freer movement of people between the regions should also be pursued, echoing long-standing calls for deeper transatlantic economic integration.
Musk, who has acted as a close advisor to President Trump and currently heads the Department of Government Efficiency (DOGE), made his remarks after one of the most turbulent 48-hour periods for American markets in recent memory.
Since Trump&rsquo;s tariff announcement Thursday, nearly&nbsp;$6.6 trillion in value has been wiped out&nbsp;from U.S. equity markets. The S&amp;P 500 dropped almost 5%, the Dow Jones Industrial Average fell 4%, and the tech-heavy Nasdaq plunged by a staggering 6%&mdash;marking their sharpest declines since the COVID-19 pandemic&rsquo;s early market shock in 2020.
Investors and analysts fear that the new tariff regime could escalate global trade tensions and further destabilize financial markets. There is growing concern that Trump may use tariff threats as leverage in geopolitical negotiations, echoing tactics from his first term.
Musk&rsquo;s phrasing&mdash;&ldquo;That&rsquo;s what I hope occurs&rdquo;&mdash;suggests he may be cautiously echoing those concerns, emphasizing a more constructive endgame while avoiding direct confrontation with Trump&rsquo;s policy. His reference to eventual resolution&mdash;&ldquo;I hope at the end of the day they will happen&rdquo;&mdash;is being seen by some as an attempt to temper alarm and nudge U.S. trade policy toward de-escalation.
Whether Musk&rsquo;s message reflects a deeper policy shift within the administration or simply a high-profile attempt at damage control remains unclear. What is certain is that with trillions already erased from investor portfolios, the stakes for clarity&mdash;and compromise&mdash;have never been higher.

billionaire Elon Musk wish free trade between US and Europe

If free trade is agreed, it could boost jobs, ease tensions, and revive investor confidence

Musk Backs EU-US Free Trade After Tariff Shock

If free trade is agreed, it could boost jobs, ease tensions, and revive investor confidence

April 6, 2025 | 10:31 IST