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Kimbal Musk, the younger brother of Elon Musk, said on Monday that President Donald Trump’s slate of reciprocal tariffs would be like imposing a “permanent tax” on US consumers.
“Who would have thought that Trump was actually the most high tax American President in generations,” Musk wrote on X on Monday.
“Through his tariff strategy, Trump has implemented a structural, permanent tax on the American consumer,” Musk added.
On Wednesday, Trump announced sweeping tariffs on 185 countries. The tariffs, which start at a baseline rate of 10%, will affect both the US’s allies and rivals.
The European Union was hit with a 20% tariff, while China was slapped with a 34% tariff. That is on top of the 20% tariff Trump imposed on China last month, bringing it to 54%.
Trump’s tariffs are set to take effect on April 9, but the move has already spooked investors. The S&P 500 is down by nearly 14% year to date, while the Nasdaq Composite is down 19% year to date.
“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump said of his tariffs on Sunday.
Musk, however, said on Monday that Trump’s tariffs will harm, rather than help, America.
“Even if he is successful in bringing jobs on shore through the tariff tax, prices will remain high and the tax on consumption will remain the form of higher prices because we are simply not as good at making all things,” Musk wrote in his X post.
“A tax on consumption also means less consumption. Which means less jobs. Which in turn leads to less consumption. And then even less jobs,” he continued, adding that America should play to its strengths.
Kimbal’s brother, Elon, is a major Trump backer — but has broken with Trump and his administration on tariffs.
On Saturday, the Tesla and SpaceX CEO said he wants to see a “zero-tariff situation” and a “free trade zone” between Europe and the US.
On Saturday, Elon also criticized Trump’s top economic advisor, Peter Navarro. The 75-year-old Harvard-trained economist was also a part of Trump’s first administration, where he pushed for a trade war with China.
“A PhD in Econ from Harvard is a bad thing, not a good thing,” Elon said of Navarro’s academic background.
“Results in the ego/brains>>1 problem,” he added.
Representatives for Musk and the White House did not respond to requests for comment from Business Insider.
