Summary
Germany’s Economy Minister Robert Habeck criticized Elon Musk’s proposal for zero tariffs between the US and Europe, calling it a “sign of weakness” driven by fear of economic fallout.
Habeck said Musk should instead pressure Trump to lift the newly imposed tariffs, including those targeting the European Union.
Musk’s call for zero tariffs comes amid market chaos after Trump’s “Liberation Day” tariffs, which included a 20% rate on the EU. The S&P 500 plunged 10% and the Nasdaq 100 entered a bear market.
The EU prepared retaliatory measures, while China and Canada vowed to respond. Analysts warned of rising recession risks amid escalating global trade tensions.
The EU started negotiations for a free trade agreement in 2015 during Obama, then the orange threw the proposal out in 2016. Now in 2025 he imposed the tariffs, then announced he’d be willing to negotiate new trade terms and the EU opened the drawer and got out that proposal from 10 years ago.
Basically what the EU always wanted in the first place.
Talk about reading the big book of the deal!