Elon Musk's zero-tariff proposal with Europe is a sign of weakness and fear, German economy minister says
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- Germany's economy minister criticized Elon Musk's zero-tariff proposal as a sign of "weakness."
- Robert Habeck said Musk should instead pressure Trump to lift tariffs, including the EU's.
- Musk's call for zero tariffs comes amid market chaos after Trump's "Liberation Day" tariffs.
Germany's economy minister slammed Elon Musk's call for zero tariffs between the US and Europe, calling it a sign of "weakness" in response to growing economic turmoil.
"I think it's a sign of weakness — maybe of fear," Robert Habeck told reporters on Monday. "If he has something to say, he should go to his president and say: 'Before we're talking about zero tariffs, let's stop the mess you've just made in the last week.'"
Musk's comments came on Saturday when he proposed a "zero-tariff" system between the US and Europe. This was just days after President Donald Trump announced baseline "reciprocal" tariffs on dozens of trading partners, including a 20% tariff rate on the European Union.
"This is ridiculous," Habeck added. "The only interpretation I have is that he now sees that his own companies, but even the economies, are going to crumble because of the mess they have made. So, he's afraid."
Markets reacted sharply to Trump's tariff announcement, with the S&P 500 plunging 10% over two days and the Nasdaq 100 entering a bear market for the first time since 2022.
The sell-off deepened on Monday as investors saw little indication that Trump would back down and foreign nations prepared to retaliate.
Last week, European Commission President Ursula von der Leyen said the EU was "finalizing" a package of countermeasures against the steel tariffs and was preparing further countermeasures "to protect our interests and our businesses."
While the UK and Australia have signaled they would not retaliate, China and Canada have pledged to respond.
Analysts have begun slashing year-end market forecasts, warning of heightened recession risks as trade tensions escalate.