Elon Musk Calls for ‘Zero-tariff' Zone between US, EU

Tesla founder Elon Musk said he hopes to establish a "tariff-free" system between the United States and Europe, effectively creating a "free trade zone," during an event for the Commonwealth of Independent States in Italy, days after US President Donald Trump imposed tariffs that sent global markets into a tailspin.

"From my perspective, both Europe and the United States should ideally move to a zero-tariff system. That's what I hope will happen," Musk told Italian Deputy Prime Minister Matteo Salvini on Saturday.

Musk's comments, during a meeting of the right-wing League party in Florence, appeared to contradict the position of Trump, for whom Musk has been a key advisor since January and previously a major campaign donor.

Trump announced on Wednesday a 20% tariff on goods imported to the United States from the European Union, as part of a series of global trade tariffs. The European Union expressed its preference for negotiating a settlement, but emphasized its readiness to respond with countermeasures if necessary, including imposing its own tariffs, taxing services, and targeting American technology companies.

Musk added that he also hopes to forge a deeper partnership between the United States and Europe and provide greater mobility for those who wish to work in either the United States or Europe.

"That was certainly my advice to the president," Musk told the audience via video link, without elaborating on whether the advice related to tariffs, freedom of movement, or both.

In recent weeks, Salvini has launched sarcastic attacks on Musk, as the billionaire's relationship with Prime Minister Giorgia Meloni appears to be improving.

Bloomberg reported in March that Italy had backed out of a €1.5 billion ($1.64 billion) deal for SpaceX's Starlink system amid significant geopolitical shifts.

Musk is expected to step down from his role leading the Department of Government Efficiency and Cost Reduction once his 130-day term as an interim advisor to Trump ends, but he will remain closely aligned with the president.