Elon Musk hopes for 'free trade' between United States and Europe days on from tariff turmoil
by Flaminia Luck · LBCBy Flaminia Luck
Elon Musk has told an audience he hopes to see a time when there are no tariffs between the United States and Europe.
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His comments come after US President Donald Trump caused turmoil after announcing 20% tariffs on goods from the European Union, and other sweeping ones across the rest of the world in his bid to 'Make America Wealthy Again'.
However, only days on the Tesla owner said: “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, effectively creating a free-trade zone between Europe and North America."
Musk was speaking via video-link interview with Matteo Salvini, Italy’s deputy prime minister and the leader of the far-right League party, for a League congress in Florence.
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As the tariffs reverberated through the world's financial markets, US stocks have suffered steep falls.
The S&P 500 plummeted by about 3.3%, and Dow Jones was tumbling around 2.6% on Thursday afternoon when markets opened on Wall Street.
European and UK indices have also been seeing sharp drops in the aftermath of Mr Trump unveiling a range of new tariffs, which are set to significantly impact global trade.
In the meantime, Tesla has witnessed a decline in sales in recent months due to his controversial cost-cutting involvement with DOGE.
Sales dropped by 49% in Europe during the first two months of the quarter, according to the European Automobile Manufacturers’ Association.
Speaking to LBC's Lewis Goodall, Chief Secretary to the Treasury Darren Jones said the UK was "disappointed" by Trump's tariffs.
He acknowledged that the "world has changed" and the Government needed to respond to that - but insisted the Chancellor's fiscal rules were non-negotiable.
"We've been clear that we are disappointed by tariffs," Mr Jones said.
"We don't think a trade war or a tariff war is in the interest of any economy, let alone our own. But obviously the world has changed and we need to respond to that.
"That's why the Prime Minister will be setting out further details about what work we'll be doing in support of UK businesses, working with them to create a stronger and more resilient economy and better trading opportunities for them across the world as well."
Watch Again: Lewis Goodall is joined by Chief Secretary to the Treasury Darren Jones