Elon Musk Urges Creation of U.S.-EU Free-Trade Zone with No Tariffs

Florence, Italy, April 5, 2025 – Elon Musk, the tech billionaire and Trump administration advisor, called for a U.S.-EU free-trade zone with zero tariffs during a video address to Italy’s Lega party congress in Florence on Saturday morning. Speaking to Deputy Prime Minister Matteo Salvini, Musk said, “At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation, effectively creating a free trade zone between Europe and North America.” The proposal, aired amid Trump’s tariff-fueled market chaos—S&P 500 down 4.8% Thursday—marks a bold counterpoint to the president’s protectionist agenda, igniting debate over transatlantic trade’s future.

A Vision at Odds with Trump

Musk’s pitch comes days after Trump’s April 2 “Liberation Day” tariffs slapped a 10% levy on all imports, with 20% on the EU, 24% on Japan, and 54% on China, crashing the Nasdaq 10% this week, per CNBC. As head of the Department of Government Efficiency (DOGE), Musk has Trump’s ear—his $119 million campaign contribution and X platform megaphone helped secure the presidency, per Splinter. Yet, his free-trade stance clashes with Trump’s “America First” playbook, which vows to shield U.S. jobs with steep duties. “If people wish to work in Europe or North America, they should be allowed to,” Musk added, per Reuters, a nod to open borders that could rankle Trump’s base.

Salvini, hosting Musk via video-link at MiCo Firenze, lapped it up. “Musk’s a friend of freedom,” he’d said earlier, per my Lega Congress piece, eyeing a Tesla gigafactory in Italy’s north. Posts on X buzzed with support: “Elon’s vision for a US-EU free trade zone is epic, LFG!” one user cheered, imagining “Web3 collabs” and “degen parties.” But others noted the rift: “Musk does disagree with this admin policy,” a user posted, pointing to Trump’s deficit-cutting tariff logic.

Economic Stakes and EU Pushback

A U.S.-EU free-trade zone could reshape a $1.1 trillion trade relationship—Italy alone exports €60 billion to the U.S., per Euronews. Musk’s Tesla, hit by a 9.2% stock drop this week, and SpaceX’s Starlink, facing foreign barriers, stand to gain, per The Guardian’s March 14 tariff warning. “A stronger partnership,” Musk called it on Sky News, aligning with Salvini’s Eurosceptic push to ease EU red tape. Posts on X speculate a Tesla plant in Piedmont could seal the deal.

The EU, though, isn’t rolling over. Facing Trump’s 20% tariff, Brussels prefers “a negotiated settlement” but vows retaliation—tariffs on U.S. tech giants or services—if talks falter, per Investing.com. Italy’s Economy Minister Giancarlo Giorgetti, a Lega ally, urged “de-escalation” Saturday, per Reuters, while Germany’s BMW reels from a 37% profit slump tied to tariff fears, per The Guardian. “This is a game-changer,” Fitch’s Olu Sonola told thenews.com.pk, warning of recession risks if tariffs stick.

A Maverick’s Play

Musk’s free-trade call—echoed in a Bloomberg nod to “zero tariffs”—doubles as a lifeline for his empire amid Tesla’s China woes and Silicon Valley’s IPO bust. It’s a stark pivot from his January stance to Reuters that trade barriers protect U.S. automakers from China’s BYD. Now, with Salvini’s backing and Trump’s ear, he’s betting on open markets to counter the tariff storm he helped unleash. “The genie’s out of the bottle,” CNBC mused in March—whether Trump bends or breaks from Musk’s vision, the dice are rolling on a transatlantic shake-up.

If you’d like me to dig deeper—like Musk’s motives or EU reactions—let me know! What’s your take?