### Kimbal Musk Slams Trump Tariffs as ‘Permanent Tax on Consumers’ Amid Economic Fallout
*April 7, 2025, 1:19 PM PDT* — Kimbal Musk, brother of Tesla CEO Elon Musk and a prominent entrepreneur in his own right, has publicly criticized President Donald Trump’s sweeping tariffs, calling them a “structural, permanent tax on the American consumer.” In a fiery post on X Monday morning, Kimbal, a restaurateur and co-founder of The Kitchen, argued that the tariffs—rolled out last week with a 10% baseline on all imports and steeper levies like 34% on China—will burden U.S. households long-term, even if they spur domestic jobs. His remarks amplify a growing rift among Trump’s allies as markets reel from a $5 trillion S&P 500 selloff.
Kimbal’s critique, posted at 10:14 PDT, didn’t mince words: “Through his tariff strategy, Trump has implemented a structural, permanent tax on the American consumer. Even if he is successful in bringing jobs on shore through the tariff tax, prices will remain high.” The statement, echoed in posts across X, contrasts sharply with Trump’s “Liberation Day” narrative, where he’s pitched the April 2 tariff plan—escalating to 50% on 57 nations by April 9—as an economic revolution to revive U.S. manufacturing. Kimbal, however, sees it as a misstep, tweeting later, “We should play to our strengths, not weaknesses,” suggesting America’s edge lies in innovation, not protectionism.
The backlash comes as Elon Musk, a key Trump adviser leading the Department of Government Efficiency (DOGE), has also subtly distanced himself from the tariff push. On Saturday, Elon told Italy’s Matteo Salvini he favors a “zero-tariff situation” with Europe, a stance at odds with Trump’s 20% levy on EU goods. Posts on X seized on the brothers’ dissent, with one user noting, “Kimbal calling Trump the ‘most high tax President in generations’—shots fired from the Musk camp!” Yet Trump, golfing in Florida, doubled down via Truth Social: “Tariffs will bring TRILLIONS back to America—China’s hit harder, not even close.”
Economists partly back Kimbal’s view. The Tax Foundation estimates Trump’s tariffs could hike consumer costs by $524 billion annually, shrinking GDP by 0.8% and cutting 684,000 jobs—countering Trump’s job-creation claims. JPMorgan’s Monday note pegged recession odds at 60%, citing tariff-driven inflation that Federal Reserve Chair Jerome Powell, speaking today, warned could force rates higher. Walmart’s stock slid 3% amid boycott calls over price-hike fears, while Tesla—despite U.S. factories—dropped 5.6% as imported parts costs rise, per analysts.
Kimbal’s outspokenness—he sits on Tesla’s board and has a $2.5 billion net worth tied to SpaceX and The Musk Foundation—adds a personal twist to the policy clash. Unlike Elon, who’s navigated Trump’s inner circle, Kimbal’s X posts frame him as an outsider unafraid to challenge the administration’s economic playbook. “A permanent tax doesn’t vanish when jobs come back—it’s baked in,” he argued, aligning with critics like Bill Ackman, who’ve urged a tariff pause as the Dow shed 1,400 points pre-market.
As Trump’s team scrambles—Peter Navarro downplaying the selloff, Elon jabbing at Navarro’s credentials—the Musk brothers’ dissent underscores a broader tension. With Bitcoin below $75,000 and global trade partners like China retaliating with 34% duties, Kimbal’s warning of a “permanent tax” looms large. Will it sway Trump’s course, or deepen the divide? For now, the tariff tempest rages on, with consumers—and the Musks—caught in the crosswinds.
