The growing tension between Tesla CEO Elon Musk and former U.S. President Donald Trump is once again making headlines. In a recent statement, Musk voiced strong criticism of Trump’s proposed tariff policy, warning that it could push the U.S. economy into a deep recession if implemented.
The Background:
Donald Trump, who is currently campaigning for another presidential term, has promised to introduce sweeping tariffs reportedly up to 60% on Chinese imports and potentially other countries. The goal, according to Trump, is to protect American industries and jobs. However, economists and business leaders warn that such aggressive trade measures could backfire.
Musk’s Response:
Elon Musk, who is not only the head of Tesla and SpaceX but also a leading voice in the global tech industry, did not mince words. He stated that Trump’s proposed tariffs could cause massive inflation, destabilize global supply chains, and ultimately lead to a U.S. economic recession. Musk emphasized that such policies would harm American consumers and manufacturers alike.
> “This is not how you rebuild an economy. It’s how you break one,” Musk said during a tech forum in Austin, Texas.
Historical Context:
Trump’s trade war with China during his presidency resulted in billions in tariffs and a measurable impact on U.S. agriculture, tech, and manufacturing. While some of these industries received subsidies to cushion the blow, many believe the overall effect was negative, reducing global competitiveness and increasing costs domestically.
What Analysts Say:
Financial experts have supported Musk's stance, pointing to data from the 2018–2019 trade war showing increased prices for American-made goods and retaliatory tariffs from trading partners. Analysts warn that a similar approach in 2025 could lead to capital flight, slower GDP growth, and even job losses across multiple sectors.
Political Implications:
The dispute between Trump and Musk also hints at deeper ideological differences. While both have historically aligned on certain deregulation agendas, their visions for America’s economic future now seem to diverge sharply.