Elon Musk pushes for US–Europe zero-tariff zone amid growing far-right ties
ET Online April 06, 2025 10:00 AM
Synopsis

In a recent video conference, Elon Musk expressed his hopes for a zero-tariff trade zone between the United States and Europe, proposing a closer partnership between the two. His comments come in the wake of President Trump’s announcement of tariffs on European goods. Musk also emphasised the need for greater freedom of movement across the Atlantic, aligning himself with right-wing European politics, while supporting government efficiency and a reduction in public spending.

Tech billionaire Elon Musk has made a fresh pitch for free trade between the United States and Europe, saying both sides should aim for a “zero-tariff situation, effectively creating a free-trade zone.” His comments came during a video appearance at the League Party congress in Florence, hosted by Italy’s far-right political leader Matteo Salvini.

The statement came just days after US President Donald Trump unveiled sweeping new tariffs, including a 20% duty on European Union goods. Italy, which enjoys a trade surplus with the United States, is among the countries affected.

“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 added that, in the long term, he wanted to see “a very close, stronger partnership” between the two sides.


Calls for freedom of movement alongside free trade

Beyond tariffs, Musk also advocated for easing restrictions on cross-border employment between the two continents.

“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” he told Salvini during the interview, adding: “This has certainly been my advice to the president.”

Musk's call for open movement of labour stands in contrast to much of the anti-immigration rhetoric that has shaped right-wing politics in recent years. Nevertheless, it aligns with his long-standing belief that innovation and talent flow freely when borders are less rigid.

Trump’s tariff shockwave and Italy’s concerns

The backdrop to Musk’s comments is President Trump’s latest round of protectionist trade measures. The 20% general tariff on EU goods, announced just days earlier, threatens to escalate tensions between Washington and Brussels.

Italy's Economy Minister Giancarlo Giorgetti, also a League member, urged calm and called for a “de-escalation” in response to the move. He also warned against imposing retaliatory tariffs, citing the risks of further economic disruption.

A growing bond with the European far right

Musk’s appearance at the League Party congress is the latest sign of his growing affinity with far-right movements in Europe. On Saturday, he appeared via video alongside Salvini, who is also Italy’s Deputy Prime Minister and known for his hard stance on immigration.

Earlier this year, Musk openly expressed support for Germany’s Alternative for Germany (AfD), another far-right party. He also made controversial remarks about immigration in Italy, prompting a public rebuke from the country’s President.

His alignment with far-right figures continued this week as both he and Trump voiced support for French politician Marine Le Pen, who was recently convicted of embezzlement and barred from contesting future elections.

Apart from trade, Musk also used the platform to highlight his involvement in Trump’s domestic agenda. He currently heads the newly created Department of Government Efficiency, where he has taken on the task of cutting public sector spending and eliminating what he sees as bureaucratic waste.

He also criticised European Union regulations during the event, calling them burdensome and unhelpful. Musk warned of “the dangers of censorship and mass immigration” and lent support to Trump’s views on Ukraine, mirroring a broader ideological convergence.

Starlink, Salvini, and business in Italy

Just last month, Musk thanked Salvini for endorsing his company Starlink as Italy’s preferred provider for satellite communication systems. The endorsement was a significant nod from a key government figure and further cemented Musk’s ties with Italy’s ruling conservative bloc.

While Musk’s remarks may resonate with business leaders seeking fewer trade barriers, they also raise eyebrows due to his growing closeness with far-right political forces. His vision of economic integration coexists uneasily with the political ideologies of his hosts.

Whether his vision for a zero-tariff zone and freer movement across the Atlantic can gain traction remains to be seen. But one thing is clear: Elon Musk is no longer just a business figure. He is increasingly a political actor on both sides of the ocean.
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