Trump rejects Musk’s appeal to reverse tariffs
Shafaq News/ CEO of Tesla and an adviser to the US government, Elon Musk, unsuccessfully attempted to persuade President Donald Trump to reverse newly imposed tariffs on Chinese imports, the Washington Post reported on Tuesday.
Despite Musk’s efforts, Trump escalated his stance, warning of a 50% tariff on Chinese goods, adding to the 34% increase announced last week, the newspaper quoted sources.
White House Press Secretary Karoline Leavitt in a statement said, “President Trump has assembled a remarkable team of experienced individuals who contribute diverse viewpoints, but he alone makes the final decisions,” adding, “Once a decision is made, the entire team aligns behind it.”
Tesla shares dropped more than 2.5% on Monday, closing at $233.29, as concerns grow over potential market fallout from the escalating tariff dispute.
Earlier this month, Donald Trump introduced sweeping new tariffs, applying a 10% baseline duty on all imported goods and raising rates as high as 50% on imports from 57 targeted countries. Branded as part of his "reciprocal tariff" strategy, the move was designed to correct trade imbalances and protect American industries. Key trading partners, including China, quickly retaliated, intensifying global trade tensions.
Financial markets reacted sharply, with major indexes plunging amid fears of a prolonged trade war and its broader economic fallout. The Dow Jones Industrial Average dropped over 2,200 points in a single day, while the Nasdaq slipped into bear market territory. Volatility spiked, with the VIX surging as investor anxiety grew over the potential for inflation, weakened corporate earnings, and a global economic slowdown. International markets also tumbled, with Japan’s Nikkei falling nearly 9%.
