Elon Musk urges creation of U.S.-EU free-trade zone with no tariffs

Published 05/04/2025, 18:34
© Reuters

Investing.com -- In an unexpected video appearance at the Federal Congress of the League in Florence, Elon Musk called for a zero-tariff situation between Europe and the United States.

His comments came few days after President Trump recently announced a 20% tariff on goods entering the U.S. from the European Union.

"With the tariffs, that at the end of the day, I hope it is agreed that both Europe and the United States should move to a zero tariff situation, effectively creating a free trade zone between Europe and North America."

These comments suggest a difference in views from those of the President, to whom Musk has been a key advisor since January and a significant campaign contributor prior to that.

The President’s tariff announcement, which was made on Wednesday, is part of a broader set of trade levies aimed at nearly every country.

In response, the European Union has stated its preference for a negotiated settlement but also expressed readiness to retaliate if necessary. These countermeasures could include imposing its own tariffs, taxing services, and targeting American tech firms.

Italy’s League party leader Matteo Salvini has been recently making overtures towards Musk, who is reportedly prepared to step back from his advisory role to President Trump and get back to managing his businesses.

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