Billionaire Elon Musk has called for the creation of a borderless trade zone between the United States and Europe, aiming to eliminate tariffs between the two regions.
Musk made these comments during a video interview with Italian Deputy Prime Minister Matteo Salvini on Saturday, where he discussed the potential benefits of improving economic relations.
According to FoxNews, Musk believes that both Europe and the US should move toward a "zero-tariff situation," effectively creating a free-trade zone between North America and Europe.
"At the end of the day, I hope it's agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation," Musk said.
He emphasized the importance of greater freedom for people to move and work between the two continents, adding, "If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view."
This proposal from Musk comes at a time of heightened tension regarding international trade. Just days before Musk's interview, President Donald Trump announced new tariffs against countries around the world, including the European Union.
The US imposed a 20% tariff on European Union imports, while Chinese goods were hit with an even higher 34% tariff, bringing the total new taxes on Chinese imports to 54%.
Musk says he hopes the U.S. and Europe move to "a zero tariff situation" and says he wants "more freedom of people to move between Europe and North America."
— MeidasTouch (@MeidasTouch) April 6, 2025
"That has certainly been my advice to the president," he says. (via @wsteaks) pic.twitter.com/UgrcHBzQqA
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The European Union has responded to these tariffs with strong criticism, with European Commission President Ursula von der Leyen stating that Europeans "feel let down by our oldest ally." She warned that these moves could lead to increased protectionism, which could have dire consequences for global trade.
Musk, who has been an influential figure in the Trump administration, also expressed his discontent with certain aspects of the current trade policies.
He criticized Peter Navarro, the Trump administration's senior counselor for trade and manufacturing, on social media, calling Navarro's academic background a disadvantage.
Musk's comments came as Tesla sales have seen a decline, particularly in Europe, with sales dropping by 49% in the first two months of the quarter, CNN said.
Musk's proposal for a zero-tariff situation is a direct challenge to the escalating trade tensions, and it echoes his desire for more open economic relationships. The idea would not only benefit the flow of goods but could also encourage greater mobility for workers between Europe and the US.
Meanwhile, Italy, which posted a trade surplus of about 39 billion euros ($42.74 billion) with the US in 2024, is also pushing for a "de-escalation" in tariff disputes.
Italian Economy Minister Giancarlo Giorgetti expressed hopes for reducing trade tensions with the US, especially given Italy's modest 0.5% economic growth in 2024.
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