Tariffs shake Elon Musk’s empire, ₹10 lakh crore wiped out; now Trump says, “Reconsider it.”

Elon Musk and Donald Trump: The Tariff Crisis

Tesla CEO Elon Musk has made a personal appeal to U.S. President Donald Trump to remove the newly imposed tariffs. Following the global rollout of tariffs, Tesla has suffered significant financial losses. After the U.S.

imposed heavy tariffs on China and several other countries, China retaliated with its own counter-tariffs. In response, Trump warned of imposing a 50% tariff on goods imported from China.

Concerned about the impact on his company, Musk privately reached out to Trump, urging him to reconsider this policy.

What’s the Issue?

Recently, Trump announced substantial tariffs on China and other countries—starting at 34% and potentially going up to 50%. Musk has warned that such tariffs could be devastating for American companies.

According to a Washington Post report, Musk and Trump even had a direct conversation on the matter, though no concrete resolution came from it.

Heavy Losses for Tesla

Since the announcement of the tariffs, Tesla has seen a decline in sales. Among the companies hit hardest by these tariffs, Tesla ranks third.

Industry experts believe that under Musk’s leadership and his public support of Dogecoin (DOGE), Tesla has transformed from merely an auto brand into a political symbol—posing new risks for the company.

On Monday, Tesla shares dropped by 2.5%, closing at $233.29. The company’s valuation has fallen by 38% so far this year.

Massive Personal Loss for Musk

According to The Guardian, Musk has suffered huge personal losses since the tariffs came into effect. The sharp decline in Tesla’s share prices led to a $31 billion (approx. ₹2.6 lakh crore) drop in his net worth between Thursday and Friday alone.

Since the beginning of 2025, Musk’s estimated wealth has decreased by $130 billion (around ₹10.85 lakh crore). Despite this, his net worth still stands at $302 billion, keeping him the richest person in the world.

Business Leaders Try to Persuade Trump

As per the Washington Post, a group of business leaders is trying to convince Trump to adopt a more moderate trade policy. However, former Musk ally and current Commerce Secretary Howard Lutnick remains unconvinced, stalling any potential progress.

Musk’s Free Trade Vision

In a discussion with Italy’s Deputy Prime Minister Matteo Salvini, Musk advocated for free trade. He emphasized that both the U.S. and Europe should adopt a zero-tariff policy and allow the free movement of skilled individuals across borders.

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Elon Musk and Donald Trump: The Tariff Crisis Deepens

Tesla CEO Elon Musk has personally appealed to U.S. President Donald Trump to roll back newly imposed tariffs, warning of severe consequences for American innovation and manufacturing.

The global implementation of these tariffs has hit Tesla hard, particularly due to its heavy reliance on the Chinese market for both production and sales.

After the U.S. imposed steep tariffs on China and several other countries, China retaliated with its own counter-measures. Trump has since threatened to hike tariffs on Chinese imports to as much as 50%. In response,

Musk urged Trump to reconsider the strategy, emphasizing the need for a balanced and future-focused trade policy.

Musk’s concerns are not without merit. Tesla has one of its largest Gigafactories in Shanghai, which plays a vital role in meeting global demand.

Disruption to this supply chain could delay deliveries and hike production costs, further squeezing Tesla’s already narrowing profit margins.

The ongoing trade war has rattled investors. Tesla’s stock fell by 2.5% on Monday to $233.29, bringing its total decline for 2025 to 38%. Analysts warn the losses could deepen if geopolitical tensions escalate.

According to Bloomberg, Tesla’s Q1 sales in China dropped by 27% year-over-year, driven largely by increased tariffs and growing competition from domestic EV makers like BYD and NIO.

The tariffs have also caused component prices to rise. Tesla, which sources several key parts from Asia, is now facing higher costs for batteries, semiconductors, and rare-earth materials.

The Guardian reported that Elon Musk’s personal net worth declined by $31 billion in just two days, and by $130 billion so far in 2025. Despite this, he remains the world’s richest man, with a net worth of $302 billion.

Economists from Goldman Sachs warn that prolonged trade wars could slow global EV adoption, as rising costs are passed on to consumers.

Musk’s recent comments in Italy also highlighted the need for free movement of skilled labor. “Talent knows no borders,” he said during a joint press briefing with Deputy PM Matteo Salvini.

The broader tech sector is also feeling the heat. Apple, Nvidia, and Intel have all expressed concerns over rising export duties and supply chain disruptions.

Meanwhile, lobby groups in Washington, including the National Association of Manufacturers, have called for immediate dialogue between the U.S. and China to avoid further economic fallout.

An internal Tesla memo leaked to Reuters revealed that the company may pause expansion plans in Asia if the situation doesn’t improve.

Despite the setbacks, Musk is doubling down on innovation. Tesla recently announced a new battery initiative aimed at reducing dependency on Chinese suppliers.

Trump, during a campaign rally in Ohio, acknowledged Musk’s concerns but defended the tariffs as “necessary to protect American jobs and industries.”

A faction within the Republican Party has also voiced support for revisiting the tariff policy, citing its negative impact on high-tech exports.

On social media, Musk hinted that trade wars could push him to prioritize investment in other markets, such as India or Mexico, where trade barriers are lower.

Global investors are now closely watching the next round of U.S.-China talks, expected later this month in Geneva.

If the tariffs remain in place, Tesla may be forced to increase vehicle prices by up to 12% in key markets, according to a report by Morgan Stanley.

In the midst of this turmoil, Musk has continued to tweet optimistically about the future of AI, energy, and Mars colonization—though critics argue it’s a distraction from the real financial concerns.

Tesla fans and shareholders are now hoping that diplomacy will prevail before more damage is done to one of the world’s most influential tech brands.

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