Musk advocates for ‘effective free-trade zone’ between the US and Europe
Elon Musk has voiced his support for an “effective free-trade zone” between Europe and the US, days after US President Donald Trump imposed a sweeping set of tariffs on the world.
“I hope it is agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation, effectively creating a free-trade zone between Europe and North America,” Musk said on Saturday in a live discussion with Italy’s hard-line deputy prime minister Matteo Salvini.
“And more freedom for people to move between Europe and North America, if they wish… that has certainly been my advice to the president,” he said.
The billionaire, who heads up the US Government’s Department of Government Efficiency, also used the meeting to criticize Europe for its “stifling” regulations, saying they made it a bad place to start a new business, as well as to warn of the dangers of censorship and immigration.
EU leaders have largely condemned the tariffs, with French President Emmanuel Macron calling the decision “brutal and unfounded”. Macron called for a short-term suspension of investment in the US until the situation has been “clarified”.
Spain’s prime minister, Pedro Sánchez, said the tariffs ran “contrary to the interests of millions of citizens on this side of the Atlantic and in the US, who will unfortunately see their businesses and their purchase power” affected.
The EU is expected to impose retaliatory tariffs on US consumer and industrial goods – particularly emblematic products like blue jeans and Harley-Davidsons – in mid-April.
Last October, the EU imposed tariffs on all imports of Chinese electric cars. Tesla, which makes cars in the US, Europe and China, received a tariff of 7.8 per cent charge on vehicles made in China.
This January, Tesla – along with BMW and other Chinese automakers – filed a complaint against the European Commission.
Tesla sales in Europe slumped 49 per cent year on year in the first two months of 2025, in part due to high competition in the market and in part as a response to Musk’s support of Trump’s political agenda in the US.