Elon Musk has said that he failed in his attempts to convince President Donald Trump to hold back on implementing tariffs.
What Happened: During an interview, Musk voiced his concerns about the potential market distortions caused by tariffs, which could lead to a recession and an increase in the prices of goods.
He discussed these issues in relation to Tesla‘s recent decision to stop orders for certain models in China, which was facing a retaliatory 125% tariff.
Simultaneously, US manufacturers are linking Trump’s tariffs to industry contraction and job cuts, which is contrary to Trump’s goal of bringing back American factory jobs. The tariffs seem to be having the opposite effect.
“The president has made it clear he loves tariffs. I’ve tried to dissuade him from this point of view, but unsuccessfully,” Musk said during the interview.
Also Read: Elon Musk Tells Joe Rogan: ‘Trump Actually Is Not Perfect, but He’s Not Evil’
“Would you want tariffs between you and everyone else at an individual level? That would make life very difficult. Would you want tariffs between each city? No, that would be very annoying. Would you want tariffs between each state within the United States? No, that would be disastrous for the economy. So then, why do you want tariffs between countries?” he continued.
Recent job data from the U.S. Bureau of Labor Statistics supports these concerns, showing a decrease of 6,000 manufacturing jobs in October. This brings the total number of lost manufacturing jobs since Trump’s tariff push in April to 59,000.
Despite improving trade relations between the U.S. and China, some manufacturers predict that workforce reductions will continue as long as tariffs remain an issue.
Why It Matters: The concerns raised by Musk and American manufacturers highlight the potential negative impacts of tariffs on the economy. The tariffs, intended to protect domestic industries, appear to be causing industry contraction and job losses instead.
This situation underscores the complexity of international trade policies and their potential unintended consequences.
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