WASHINGTON DC, LOGIC.co.id – Tesla CEO and U.S. presidential adviser Elon Musk has reportedly lobbied Donald Trump directly to cancel the large-scale import tariffs imposed on China. However, Musk’s efforts have yet to yield results.
Instead of lifting the tariffs, Trump raised import duties on Chinese goods to 50 percent, up from the previous 34 percent. The decision is seen as a major blow to industry players, including Tesla, which has significant manufacturing operations and market share in both China and the U.S.
“This tariff policy is extremely harmful to us,” Musk said, as quoted by an internal source on Monday (April 8, 2025).
The impact was immediately felt in the stock market. Tesla shares dropped by more than 2.5 percent and closed at USD 233.29 at the end of Monday’s trading session.
Tech Entrepreneurs Speak Out
The aggressive tariff policy also drew criticism from members of the tech business community—many of whom were once Trump supporters. Prominent investor Joe Lonsdale voiced his objections to those close to the former president.
“These tariffs actually hurt American companies more than they hurt China,” Lonsdale emphasized.
Kimbal Musk, Elon Musk’s brother and a senior Tesla executive, also chimed in, calling Trump “the highest-taxing president in recent decades.”
The statement was considered ironic, as only weeks earlier, Kimbal had publicly thanked Trump for hosting an event that showcased Tesla cars on the White House lawn.
Business Coalition Pushes Back Against Policy
According to The Washington Post, a group of business leaders is forming an informal coalition to pressure the Trump administration to soften its stance on tariffs.
They hope Treasury Secretary Scott Bessent can influence the policy. However, their efforts are reportedly being blocked by Commerce Secretary Howard Lutnick, a known supporter of Trump’s protectionist policies—despite previously being a close ally of Elon Musk.
Musk Takes Aim on Social Media
Elon Musk didn’t hold back and publicly mocked the tariff policy on social media. He directed his criticism at Peter Navarro, Trump’s chief trade adviser and the architect behind the new tariffs.
“Having a PhD in Economics from Harvard is not a good thing. Quite the opposite,” Musk posted on his X account Monday night.
The White House has not issued an official response to Musk’s remarks. However, in a separate statement, officials said the tariffs reflect “Trump’s strong and inclusive leadership.”
Not Musk’s First Clash with Trump
This isn’t the first time Elon Musk has clashed with Trump’s economic agenda. In 2020, Tesla sued the Trump administration over tariffs on components imported from China.
However, after the lawsuit was criticized by conservative groups who believed Musk was too close to Beijing, he reportedly withdrew his support and condemned the decision internally.