Trump adviser Elon Musk says he wants free-trade and 'zero-tariff situation' between US and Europe

ELON MUSK, A close adviser of US President Donald Trump, has said he would like to see a situation where there is “free-trade” and a “zero-tariff situation” between the US and Europe.

“I hope it is 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 billionaire told Italian nationalist Deputy Prime Minister Matteo Salvini today.

His comments will raise questions over Trump’s intended aims with the sweeping tariffs that were announced earlier this week.  

Supports for Irish businesses needed – Coveney

Meanwhile, former Minister for Foreign Affairs and Trade during Brexit, Simon Coveney, has said that the government should be willing to put supports in place for businesses impacted by the tariffs. 

Coveney, who retired from politics last year, was highly critical of Trump’s tariffs, which he dubbed “ridiculous”.

Speaking on RTÉ Radio One’s Saturday with Colm Ó Mongáin show, Coveney said the Irish government should be willing to put short-term supports in place for specific sectors that are being impacted, in a bid to avoid large-scale redundancies. 

In particular, he said the food and beverages industry would be particularly exposed. 

He also noted that Tánaiste and Minister for Trade, Simon Harris, will need to raise the case of Northern Ireland in his expected meeting with US Secretary of Commerce Howard Lutnick next week.

This morning, global markets nose-dived as Trump’s 10% “baseline” tariffs came into effect at midnight.

The 10% tariff impacts most US imports, except goods from Mexico and Canada.

Next week, on 9 April, around 60 US-trading partners – including the European Union, Japan and China – are set to face even higher rates tailored to each economy.

EU Response

EU trade chief Maros Sefcovic said the bloc, which faces a 20% tariff, will act in “a calm, carefully phased, unified way” and allow time for talks.

But he said it “won’t stand idly by.”

France and Germany have said the EU could respond by imposing a tax on US tech companies, in a move that would likely face pushback from Ireland.

Coveney told RTÉ that the EU has significant cards to play if it chooses to retaliate. 

Illustrating the scale of Trump’s announcement, Coveney pointed out that last year the US imported about €600bn of exports from the EU. On these, tariffs of approximately €7bn were imposed. But with Trump’s latest announcements, the new tariffs would skyrocket to over €80bn. 

“There is no way that the European Union can allow that to simply pass without responding in a very robust manner if the US refuses to negotiate in a reasonable way,” Coveney said.

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Global response

Already, Trump’s sharp 34% tariff on Chinese goods, set to kick in next week, triggered Beijing’s announcement of its own 34% tariff on US products.

Beijing also said it would sue the United States at the World Trade Organization and restrict export of rare earth elements used in high-end medical and electronics technology.

But other major trading partners held back as they digested the unfolding international standoff and fears of a recession.

Japan’s prime minister called for a “calm-headed” approach after Trump unveiled 24% tariffs on Japanese-made goods.

Meanwhile, Trump said he held a “very productive” call with Vietnam’s top leader, with imports from the Southeast Asian manufacturing hub facing extraordinary 46% US duties.

It was also confirmed today that Israeli President Benjamin Netanyahu is expected to visit Donald Trump in the White House on Monday. 

If the two men discuss tariffs, as seems nearly certain, Netanyahu would be the first foreign leader to travel to Washington in an attempt to negotiate a better deal with Trump.

Trump this week announced a 17% tariff on Israeli goods.

Since returning to the presidency, Trump has hit Canada and Mexico imports with tariffs over illegal immigration and fentanyl, and imposed an additional 20% rate on goods from China. Come Wednesday, the added levy on Chinese products this year reaches 54%. 

Markets collapse

Wall Street went into freefall yesterday, following similar collapses in Asia and Europe.

Economists have also warned that the tariffs could dampen growth and fuel inflation.

But Trump said on his Truth Social platform that his “policies will never change.”

Trump’s latest tariffs have notable exclusions, however.

They do not stack on recently-imposed 25% tariffs hitting imports of steel, aluminum and automobiles.

Also temporarily spared are pharmaceuticals, offering a temporary reprieve for a number of major pharma companies based in Ireland.

Trump has previously threatened to hit pharmaceutical imports with tariffs, meaning this reprieve might be limited.

Canada and Mexico are unaffected as they face separate duties of up to 25% on goods entering the United States outside a North America trade agreement.

Trump’s 25% tariffs on all imported cars also took effect this week, and Jeep-owner Stellantis paused production at some Canadian and Mexican assembly plants.

Additional reporting by Andrew Walsh and AFP

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