MuskMusk’s Private Talks With Trump Failed: Trump’s 50% Tariff Triggers Tesla Stock Dip as Market Reacts to High-Stakes Trade and Political Drama

 

Elon Musk privately asked Donald Trump to reverse fresh tariffs on Chinese imports. Despite the appeal, Trump went ahead with his aggressive trade plans. The attempt sparked headlines as Musk’s relationship with the former President appeared to strain under policy clashes.

 

Face-to-Face Conversations and Increasing Tensions

 

Sources close to the matter confirmed Musk held direct conversations with Trump, asking for a rollback of the new China tariffs. The request followed Trump's announcement of an extra 50% tax on Chinese goods, adding to the 34% already in place.

 

Tesla’s Business Ties at Risk

 

Musk has long supported global trade and pushed against protectionist policies. His opposition to tariffs is rooted in Tesla’s deep business ties with both the US and China. During Trump’s first term, Tesla filed a lawsuit challenging import taxes on Chinese components.

 

Musk Turns to Public Messaging

 

Tensions grew further when Musk took to social media. He posted a video of economist Milton Friedman explaining the value of international trade. The message was clear: cooperation beats confrontation. Musk also called for a zero-tariff agreement between the US and Europe during a conversation with Italy's Deputy Prime Minister.

 

Public Insults and Political Pushback

 

Behind the scenes, the friction escalated. Musk publicly criticized White House trade adviser Peter Navarro, calling him “dumber than a sack of bricks.” Navarro, a key architect of Trump’s tariff push, brushed off Musk’s concerns, calling him a “car assembler.”

 

White House Response and Political Fallout

 

Trump’s team downplayed the feud. Press Secretary Karoline Leavitt dismissed the clash as differing views between influential voices. However, the break was hard to ignore. Musk, who leads the Department of Government Efficiency (DOGE), has donated nearly $290 million to support Trump and Republicans. His open challenge to Trump’s tariff stance marks one of the biggest disagreements between the two.

 

Market Reacts to Political Dispute

 

Markets reacted sharply, with Tesla's stock dropping more than 2.5% on Monday to end at $233.29. It has been a year in which its stock lost over 38% value. Analysts say pressure on Tesla demand is growing, while political battles involving Musk only add to the uncertainty.

 

Tariff Dispute Reflects Broader Business Divide

 

Despite his direct influence in Washington, Musk failed to change the course. Trump remains committed to his trade policies, though he signaled limited room for negotiation. The tension shows the limits of even the world’s richest person in steering US policy when political goals differ.

 

Growing Rift Between Trump and Business Leaders

 

Musk's tariff position signifies a more profound shift. Once grown up in the shadows of Trump, business leaders would now have to face some hard choices, now that the hour of sharp policy clash is upon them. At this point, however, there seems to be no reply to the economic demand of global trade harmony called for by Elon Musk. Rising economic and political divides then overshadow it.