Elon Musk calls for a US-Europe free-trade zone with zero tariffs while EU plans a response to US import duties.
Tech billionaire Elon Musk has called for unrestricted trade between the United States and Europe, advocating for a tariff-free economic zone.
The adviser to US President Donald Trump said he supported eliminating trade barriers during a video appearance at a conference hosted by Italy’s far-right League party in Florence on Saturday.
His comments came days after Trump announced an array of tariffs on imports to the US, including plans to impose 20-percent tariffs on imports from EU members, including Italy, which has a significant trade surplus with the US.
“Ideally, both Europe and the United States should move to a zero-tariff situation, effectively creating a free trade zone between Europe and North America,” he said.
Speaking to League leader Matteo Salvini, Musk also endorsed greater freedom of movement between the two regions.
“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” he said, noting that he had shared this stance with Trump.
Musk has previously voiced support for right-wing European parties, including Salvini’s League and Italian Prime Minister Giorgia Meloni’s Brothers of Italy and the Alternative for Germany (AfD).
Earlier on Saturday, Italy’s Economy Minister Giancarlo Giorgetti, a League member, urged de-escalation with Washington over the tariffs, cautioning against retaliatory measures.
The European Union has pledged to respond “in a calm, carefully phased, unified way” to US tariffs on its goods, EU Trade Chief Maros Sefcovic said.
Trump has described the latest tariffs as an “economic revolution” and claimed that the measures would bring industry and jobs back to the United States.
In the wake of the tariff announcement, US stock markets recorded their worst two-day stretch since COVID pandemic, and international markets were also routed.
Several nations have said they would retaliate, raising the risk of a global trade war marked by tit-for-tat tariffs.