Tesla CEO Elon Musk Sides With Donald Trump Over China Tariffs

  • Tesla CEO Elon Musk Sides With Donald Trump Over China Tariffs

Tesla CEO Elon Musk Sides With Donald Trump Over China Tariffs

However, Musk has expressed support for Trump's policies before and his recent tweets could be a way for him to bring the president's attention to issues affecting Tesla, and to a larger extent, other American companies.

The Tesla chief executive officer served on two White House advisory councils before stepping down in June a year ago after the president announced he would pull the United States out of the Paris climate accord, but last month, Trump tweeted his congratulations to Musk following a successful launch by Space Exploration Technologies Corp, another one of Musk's companies. Musk tweeted past year that the company was already digging the tunnels under Los Angeles. "It's got to change", Trump said, saying he plans to impose a "reciprocal tax" on other countries.

Last year, Musk announced on Twitter that he had received "verbal government approval" for The Boring Company to build an underground Hyperloop system connecting NY city, Philadelphia, Baltimore and Washington DC. However, Tesla and Chinese authorities have yet to announce an agreement.

In fact, much about Boring Company is unclear. Telsa officials in China declined to comment.

Tesla has been looking to reduce its import duties to China by manufacturing their vehicles locally.

Musk described the pod-like vehicle in a response to another Twitter user's question: "I guess you could say it's a 150 miles per hour, underground, autonomous, electric bus that automatically switches between tunnels and lifts".

Tesla shares were down half a per cent at $327.25 after markets closed on Thursday.

He added that "when China or another country charges us 50 percent tariffs - more than that in some cases - and we charge them nothing, that's not fair". Sources also said that Trump asked Beijing for a $100 million reduction in the USA trade deficit.

China levies a 25 percent duty on sales of imported vehicles. In a series of tweets directed at the president, Musk cited China's 25 percent import duty on American cars which is exponentially higher than the 2.5 percent the USA charges for Chinese cars.

"We raised this with the prior administration and nothing happened", Musk wrote, after tweeting at Trump about both the import duties and joint-venture ownership rules.

"I don't know if you saw last-with Elon-with the rocket boosters where they're coming back down", Trump told reporters. The Tesla chief executive officer served on two White House advisory councils before stepping down in June after the president announced he would pull the USA out of the Paris climate accord.