Tesla founder Elon Musk expressed opposition to U.S. tariffs on Chinese electric vehicles (EVs) during a tech investor conference in Paris on Thursday, reversing his January stance that trade barriers were necessary to prevent China from “demolishing most other car companies in the world.”
Musk stated that he did not support measures that distorted the market. “Neither Tesla nor I asked for these tariffs; in fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” he said at the Viva Technology conference via video link.
This month, U.S. President Joe Biden introduced new tariffs on a range of Chinese imports, including EVs, in an effort to bolster American manufacturing. The Biden administration has upheld many tariffs from the Trump era, while increasing others, including quadrupling EV duties to over 100%. The White House announced that these new measures impact $18 billion worth of imported Chinese goods.
“Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favor of no tariffs,” Musk added. In January, Musk had warned that without trade barriers, Chinese automakers would “demolish” global competitors. “If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he said during a post-earnings analyst call earlier this year.
The VivaTech conference also featured prominent tech executives and political figures such as former Google CEO Eric Schmidt and former U.S. climate envoy John Kerry. Linda Yaccarino, the CEO of Musk-owned social media platform X, is expected to join in-person on Friday for a panel discussion on the future of content.
