Although Elon Musk has not spoken publicly about tariffs, it is apparent that he has been considering their potential impact on his business ventures. As the CEO of various companies, including Tesla, his interests could be influenced by changes in trade policies initiated by the Trump administration.
During a recent meeting with Indian Prime Minister Narendra Modi in Washington, discussions centered around EV tariffs, highlighting the importance of trade negotiations for Musk’s enterprises. Trump’s proposal for reciprocal tariffs and ongoing talks with India could shape the future of trade relations, affecting companies like Tesla.
Musk has previously mentioned the importance of reciprocity in trade agreements, aiming for reduced duties. However, Trump has taken a different approach, emphasizing tariffs as a means of generating revenue. Despite these contrasting views, Musk has largely avoided public commentary on tariffs, leading to criticism from political opponents.
While Musk’s alignment with Trump’s agenda has been evident, his stance on tariffs remains ambiguous. The meeting with Modi was scrutinized by some for potential conflicts of interest, with accusations of seeking personal gain. Musk’s reserved approach to discussing tariffs has raised questions about his involvement in trade negotiations and his political affiliations.
Whether Musk is pulling in different directions in his capacity as a CEO compared to that of a government official doesn’t seem to be a major concern for Trump. When asked by reporters about Musk’s approach during a meeting with Modi, Trump admitted he was unsure if Musk was acting as a CEO or a White House adviser, speculating that Musk likely aimed to expand business in India despite the challenges posed by tariffs in the country. Trump mentioned that Musk could be seen as an employee, consultant, or any other designation. One aspect of Musk’s stance on tariffs that may have caught Trump’s attention is his commentary on the impact of local value-added taxes (VATs) on Tesla car prices in different countries. Musk pointed out the difference in pricing due to the inclusion of VAT in other countries as opposed to the U.S., where it is not factored into the prices. Recently, Trump outlined his strategy for reciprocal tariffs, emphasizing the consideration of non-tariff barriers like VAT in the policy. Trump equated the VAT system to be as restrictive as tariffs and highlighted its importance in the reciprocity dialogue. Ben Werschkul, the Washington correspondent for Yahoo Finance, along with Rick Newman, presents a weekly analysis on how U.S. policies and government actions impact financial matters in Capitol Gains. The show provides insights into how political decisions influence stock prices and offers a unique perspective on the intersection of business and policy. To stay informed about the latest financial news and government policies shaping the economic landscape, tune in to Capitol Gains on popular podcast platforms like Apple Podcasts and Spotify. Stay updated on political developments related to business and financial policies that could influence future market trends by following the latest updates on Yahoo Finance.
