Once close allies during the 2024 US presidential election, Donald Trump and tech magnate Elon Musk are showing signs of a rift, driven by disagreements over trade war tariffs. Sources suggest Musk’s growing frustration with Trump’s high-tariff policies against China is straining their once-cordial relationship.
From Allies to Discord
The connection between Musk and Trump dates back to the 2010s, forged through business and political circles. In 2017, Musk joined Trump administration advisory councils to discuss economic policy, though he later stepped down over climate policy differences. During the 2024 campaign, Musk threw his weight behind Trump, donating nearly $290 million and promoting him on X, later taking a role as an adviser in the Department of Government Efficiency (DOGE). Their bond appeared unbreakable.
However, Trump’s post-election tariff policies—slapping up to 125% to 145% duties on Chinese imports—have hit Musk’s interests hard. As CEO of Tesla and SpaceX, Musk relies heavily on China’s market and supply chain. The tariffs inflate Tesla’s US production costs, while China’s retaliatory tariffs (up to 84%) erode its edge in the world’s largest electric vehicle market. Musk has publicly slammed Trump’s trade adviser Peter Navarro, calling the tariff approach “damaging to the US economy,” and reportedly urged Trump privately to ease China tariffs, to no avail.
Trade War’s Ripple Effects
The trade war’s impact goes beyond their relationship. Tesla faces rising costs for parts and raw materials, with lithium, copper, and other resources spiking due to disrupted supply chains. American consumers could bear an extra $1,300 per household annually as goods prices climb, potentially denting demand for Tesla vehicles. Analysts note Musk’s SpaceX and Boring Company may also face hurdles in global partnerships amid trade tensions.
Trump, meanwhile, insists tariffs are vital to protect US manufacturing and shrink trade deficits. This “America First” stance clashes with Musk’s globalised business strategy. Reports suggest Trump’s team views Musk’s outspoken criticism and high profile as a political liability, with his DOGE role potentially ending in weeks.
Uncertain Future
Despite Trump once praising Musk as a “genius,” their differences on tariffs and NASA budgets have raised doubts about their partnership’s longevity. On X, some users argue the rift is overblown, pointing to shared interests, while others believe Musk may distance himself to safeguard his business empire.
Analysts say the duo’s future hinges on policy shifts. If Trump holds firm on tariffs, Musk may pull back further, possibly exiting his advisory role. A compromise on economic policy, however, could mend ties.
Conclusion
From campaign comrades to policy adversaries, Trump and Musk’s evolving dynamic underscores the tricky interplay of politics and business. As the trade war looms large, whether this once-dynamic duo can reconcile remains to be seen.
