Musk Shocks Tesla Staff After Asking If Trump's Tariffs Were Affecting His Company: Report
Following the end of his temporary stint in government, billionaire Trump supporter Elon Musk has returned to his tech empire, surprising his own staff by inquiring about the impact of Trump tariffs upon his businesses.
Though Musk's visits to Tesla offices and factories diminished following President Donald Trump's inauguration, he did visit one of his company's offices in Palo Alto, California, just days before an earnings call in April, according to the New York Times.
He asked about how tariffs enacted by his presidential ally had impacted his company, and was briefed on supply chain weaknesses and subsequent effects upon Tesla. Some attendees of the meeting became concerned by the timing of Musk's inquiries, with Trump having announced the intended implementation of tariffs in February.
Just days after the meeting, Tesla profits dropped to the lowest level they had been at in four years after vehicle sales fell 13 percent in the first quarter. According to California-based Tesla salesman Matthew LaBrot, it had become "a grind every day to sell a car when that did not used to be the case."
Though Musk stated that he was not in favor of high or unpredictable tariffs in April, he followed this sentiment by adding that any decision on the implementation of tariffs "is entirely up to the president of the United States."
During Tesla's first quarter earnings call in April, Musk stated that "if some country is doing something predatory with tariffs," or "if a government is providing extreme financial support for a particular industry, then you have to do something to counteract that."
"He will listen to my advice. But then it's up to him, of course, to make his decision," Musk said of Trump. "I've been on the record many times saying that I believe lower tariffs are generally a good idea."
Musk's time as a member of the Trump administration came to an end in May.
"Elon is really not leaving," Trump told reporters in the Oval Office. "He's going to be back and forth. I think I have a feeling it's his baby, and I think he's going to be doing a lot of things."
Originally published on Latin Times
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
an hour ago
- DW
Harsh reactions on doubled steel tariffs – DW – 06/05/2025
Four days after announcing a doubling of tariffs on steel and aluminium, the higher tariffs are now in place. It mostly affects neighbor countries Canada and Mexico, two of the US' biggest steel suppliers. The US has raised tariffs on Canadian and Mexican steel and aluminum from 25% to 50%, effectively shutting Canadian exports out of the US market. Mexican officials believe the tariffs will eventually need adjustments due to their economic impact. President Donald Trump is using tariffs as leverage to push for individual trade agreements, with the UK being the only country to finalize a deal so far. While the tariffs are meant to protect American industries and jobs, they also increase costs for key sectors like auto manufacturing and construction. These price hikes may ultimately burden US consumers, including many of Trump's supporters. This video summary was created by AI from the original DW script. It was edited by a journalist before publication.
DW
4 hours ago
- DW
How the fragile US-China trade truce is unraveling – DW – 06/05/2025
Donald Trump has accused Beijing of breaching last month's deal to cut steep tit-for-tat tariffs. Could a much-awaited call between the US and Chinese presidents break the deadlock? The world exhaled when the United States and China unveiled a 90-day tariff truce last month, pausing the escalating trade war between the globe's largest and second-largest economies, which had rattled businesses and investors. The deal, after tense negotiations in Geneva, slashed US tariffs on Chinese imports from 145% to 30% and China's retaliatory levies on US goods from 125% to 10%. Just three weeks later, however, US President Donald Trump reignited tensions, saying that China had "totally violated" the truce deal, without providing further details. Trump later said his Chinese counterpart, Xi Jinping, was "extremely hard to make a deal with." China swiftly countered, asserting that Washington had imposed "discriminatory and restrictive measures" since the Geneva talks, pointing to US curbs on chip design software and warnings about artificial intelligence (AI) chips produced by Chinese tech giant Huawei. Deal stalled over US access to rare earths US policymakers have voiced frustration at China's stalling on export license approvals for rare earths and other elements needed in the high-tech, defense, and clean energy sectors. China, which dominates global rare-earth production with over two-thirds of supply and 90% of processing capacity, has imposed export restrictions on several key minerals. The US, lacking domestic rare-earth processing capacity, remains highly vulnerable to Beijing's restrictions. Confusion remains over what was agreed on rare earths in Geneva. In an interview with news agency Bloomberg on Wednesday, Cory Combs, head of critical-mineral supply chain research at Trivium China, said Washington believed that Beijing would "completely remove the requirement of an approval [for export licenses]," which Beijing said it did not agree to. Michael Hart, AmCham China president, told the Financial Times on Monday that China has now stepped up approvals to ship rare earths to several US carmakers, noting how "only a handful" of officials are handling thousands of applications. Trump's economic philosophy: A real plan or simply chaos? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Penny Naas, a distinguished fellow at the US-based German Marshal Fund think tank, thinks the rare earths are "China's biggest card," telling DW that "a key part of the negotiation will be when and how they liberalize the trade in those products." Naas expressed little surprise at the renewed war of words between Washington and Beijing, noting that, "You often see these highs and lows and even near-death experiences before deals are reached." But with the clock ticking until August 12 — when the 90-day pause expires — and both sides accusing the other of violations, the prospects for a lasting ceasefire and a long-term deal remain uncertain. Trump uses tariffs for maximum leverage Beyond securing access to China's rare minerals, the US seeks to cut its trade deficit with China, which was $295 billion (€259 billion) in 2024 — up nearly 6% on the previous year. The Trump administration has urged Beijing to boost purchases of American goods and eliminate non-tariff barriers, such as anti-monopoly probes targeting US companies and the designation of certain American firms as "unreliable entities." Washington has also demanded further economic reforms and an end to the manipulation of the Chinese yuan, which is kept artificially low to help boost exports. In April, when Trump announced his unprecedented tariffs, the yuan hit a 20-month low of 7.2038 against the dollar and is expected to weaken further if the higher US levies are reinstated. Trump has also pressed China to strengthen efforts to curb illegal immigration and halt exports of precursor chemicals used to produce fentanyl, an opioid fueling a public health crisis in the US. Will Trump-Xi call break the impasse? With US Treasury Secretary Scott Bessent acknowledging last week that negotiations have "stalled," all eyes are on whether a call between Trump and Xi will break the tariff deadlock. The US president has said for months that the two leaders were due to speak and even spoke of traveling to China for talks, without a public response from Beijing. US President Donald Trump said his Chinese counterpart is 'extremely hard' to make a deal with Image: Francis Chung/Imago The White House said Monday that a Trump-Xi call was "likely" to take place this week, a development that Antonio Fatas, an economics professor at INSEAD business school, said the US president would see as "his victory." "Trump's typically the one who calls people and tells them what to do," Fatas told DW. "But with a powerful player like China, that's not going to work. I wouldn't be surprised if China postpones the call." Although Trump will get the chance to talk to other world leaders on the sidelines of the upcoming G7 and NATO summits, the US and Chinese presidents aren't likely to meet in person until later in the year, signaling a protracted tussle that could last several more months. Tariff court battle plays into China's hands Another boon to China could be the lack of clarity over Trump's unprecedented tariffs after a US trade court last week ruled they were illegal. Although a higher court temporarily reinstated the levies, the White House has threatened to go to the Supreme Court for the ultimate ruling. "There may be a hesitancy to go all in on an offer at this moment when there's a large lack of clarity about the US position," the German Marshall Fund's Naas told DW. INSEAD's Fatas, meanwhile, predicted that the truce would be extended beyond the 90 days, adding: "Until I see the possibility of a real compromise on both sides, I'll remain very cautious and uncertainty remains incredibly high." Tariffs distract from US-China tech battle Both the Trump and Biden administrations have prioritized maintaining the US's technological edge over China, but there are growing concerns that the tariff policies are diverting resources and focus from US firms' ability to achieve this goal. Investor nervousness that the tariffs could cause a US recession has intensified. The tariffs have already increased costs and strained budgets for American tech firms, limiting their capacity to invest in research and development (R&D) at a critical time. With tariffs consuming significant attention among US policymakers, initiatives to bolster domestic innovation risk being sidelined. NVIDIA profits up, despite trade war challenges To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Beijing, meanwhile, has doubled down on the need to reduce its dependence on US technology. Through substantial state subsidies, China has advanced its capabilities in AI, quantum computing, advanced chip production, and 6G telecommunications, narrowing the technological gap with the US. Naas thinks that China has now caught up on "most of the technological advantage the US thought it had" and that US companies say they're "falling behind while spending all their time on reorienting their supply chains." "Is that the best use of their time when we're in hand-to-hand combat on the future of technology?" she asks. Edited by: Uwe Hessler
Local Germany
5 hours ago
- Local Germany
German Chancellor Merz prepares for delicate talks with Trump
A month into his job, conservative Merz, 69, is a staunch transatlanticist at pains to maintain good ties with what he considers post-war Germany's "indispensable" ally, despite Trump's unyielding "America First" stance. Merz will hope his pledges to massively boost Germany's NATO defence spending will please Trump, and that he can find common ground on confronting Russia after the mercurial US president voiced growing frustration with President Vladimir Putin. On Trump's threat to hammer the European Union with sharply higher tariffs, Merz as leader of its biggest economy has argued that the 27-nation bloc must be self-confident in its negotiations with Washington, declaring that "we're not supplicants". Despite the dangers, his office has voiced confidence Merz will be spared the kind of public dressing down Trump delivered in the Oval Office to Ukrainian President Volodymyr Zelensky and South Africa's Cyril Ramaphosa. Merz is looking ahead to his first in-person meeting with Trump "with great calmness and joy", his spokesman Stefan Kornelius said, pointing to their "very good relationship" so far. "Germany is the third largest economy in the world, and we have a lot to offer as an economic partner of the USA," Kornelius said. "At the same time, a very constructive and positive relationship with America is very important to us, for our own economy and for the security of Germany and Europe." The two leaders -- both with business backgrounds and keen golf players -- are on first-name terms after several phone calls, Kornelius said, and Merz now has Trump's cell phone number on speed dial. Defence and trade Merz has been given the honour of staying at Blair House, the presidential guest residence on Pennsylvania Avenue across from the White House. Merz has even felt comfortable enough to have a little fun at Trump's expense, recently telling a TV interviewer that his every second or third word was "great". Advertisement Whatever the personal chemistry, the policy issues are potentially explosive. Trump launched his roller-coaster series of trade policy shifts in April, with the threat of 50-percent US tariffs on European goods looming. Merz, who has sat on many corporate boards, is "very experienced in business, too -- the world from which Donald Trump comes," his chancellery chief of staff, Thorsten Frei, told the Funke media group. On the Ukraine war, where Germany strongly backs Kyiv, Merz will hope to convince Trump to heighten pressure on Putin through new sanctions to persuade him to agree to a ceasefire. Trump, 78, has recently expressed frustration with Putin, calling him "crazy", but without announcing concrete new measures. (COMBO) This combination of file photos created on June 3, 2025 shows Germany's Chancellor Friedrich Merz (L) and US President Donald Trump (R). (Photo by Ludovic MARIN and SAUL LOEB / various sources / AFP) Merz's visit comes ahead of a G7 summit in Canada on June 15th to 17th and a NATO meeting in The Hague at the end of the month. At that meeting Merz has said Germany is willing to follow a plan to raise defence spending to 3.5 percent of GDP over coming years, with another 1.5 percent dedicated to security-related infrastructure. 'Calm and reasonable' Another potential flashpoint issue looms -- the vocal support Team Trump has given to the far-right and anti-immigration Alternative for Germany (AfD) party, which came second in February elections. US Vice President JD Vance, Secretary of State Marco Rubio and former Trump adviser Elon Musk have all weighed in in support of the AfD, which in Germany is shunned by all other political parties. When Germany's domestic intelligence service recently designated the AfD a "right-wing extremist" group, Rubio denounced the step as "tyranny in disguise". Advertisement Merz slammed what he labelled "absurd observations" from Washington and said he "would like to encourage the American government... to largely stay out of" German domestic politics. In recent days, Merz said he was relaxed about the upcoming Trump meeting, quipping that he won't need to take valerian, prescribed to treat nervous tension and anxiety. "I don't need valerian to stay calm and have a reasonable conversation with the American president," Merz told public broadcaster ZDF . "We will have to talk about common interests. There are differences, but there are also many similarities, and that's exactly what we'll talk about."
