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- As Trump’s trade war with China escalates, the White House appears increasingly cautious about Elon Musk’s involvement in foreign policy discussions due to potential conflicts of interest. Previously the Tesla CEO and top Trump advisor had been given relatively free reign to host high-level meetings with global leaders, but the Oval Office seems keen to begin putting distance between the richest man on the planet and diplomatic issues.
When Elon Musk was named an advisor and special government employee under the Trump administration, speculators wondered how the Tesla CEO’s private interests may put him on the opposing team to Trump’s policies.
Tariffs—and an ensuing trade war with China—are seemingly the issue that could cause a rift between the two.
The New York Times reported back in March that Musk had been scheduled to attend a high-level briefing at the Pentagon on America’s plans should a military conflict arise with China.
The president denied the story, saying China was never scheduled to be discussed in the meeting, and an investigation into the leak ensued.
The investigation has led to a number of officials being ousted, Politico reports.
At the time, Trump wrote on his social media platform, Truth Social, that the story is “completely untrue” with Secretary of Defense, Pete Hesgeth, adding on X: “The fake news delivers again—this is NOT a meeting about ‘top secret China war plans.’ It’s an informal meeting about innovation, efficiencies and smarter production.”
Musk’s visit to the Pentagon did go ahead, and the Tesla CEO said afterwards that the meeting had been “great.”
However, reports now suggest that the agenda for Musk’s Pentagon visit was steered away from China, as per President Trump’s demands.
Axios reported the president didn’t want Musk in the room for conversations about conflict with the foreign rival.
Both the White House and representatives for Musk have been contacted by Fortune for comment.
Whether or not Trump intervened on the Pentagon meeting, the White House is clearly aware that Musk has a vested interest in how America’s trade war with China plays out—and needs to manage the situation accordingly.
Trump even told reporters in the White House, following the NYT report, that “certainly you wouldn’t show [military plans] to a businessman.”
Trump added: “Elon has businesses in China, and he would be susceptible perhaps to that.”
The distance Trump is now creating between foreign diplomacy and Musk is a stark change from a matter of months ago, when the White House confirmed Musk would be self-policing when conflicts of interest arose in his work with the Department of Government Efficiency (DOGE).
Indeed, when India’s Prime Minister, Narendra Modi, visited Washington D.C. in February, Trump said he “didn’t know” what the nature of the meeting was about.
“They met, and I assume [Musk] wants to do business in India,” Trump told reporters.
The nonchalant approach towards Musk’s interactions with foreign leaders has seemingly changed as tensions around Trump’s tariff policy have heated up.
China, in particular, has responded forcefully to the headline policy of Trump’s second term.
The U.S. now effectively imposes a 145% tariff on Chinese imports, with China imposing a 124.1% rate on imports from America.
Tesla’s interest in China is significant. While the EV-maker produces its vehicles in the U.S., it exports them in droves to China, which represents its second-largest market.
BYD—Tesla’s primary rival—will now be gaining further sales in China as a domestic producer.
Tariff showdown
The president’s resistance to let Musk get close to details about China comes as the X owner has increased his oppositional rhetoric to Trump’s tariff policy.
Already Tesla—the company from which Musk derives the bulk of his wealth—has made its stance on tariffs known and cautioned the White House in an unsigned letter: “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.”
And the richest man on the planet hasn’t disguised the fact that he is anti-tariff.
Speaking with Italy’s deputy prime minister, Matteo Salvini, earlier this month Musk said: “I’m hopeful for example with the tariffs…that at the end of the day…it is agreed that Europe and the U.S. should move, ideally in my view, to a zero tariff situation—effectively creating a free trade zone between Europe and North America.”
Two sources also previously told the Washington Post that Musk had tried to intervene on tariffs, but his pleas fell on deaf ears.
Perhaps the most telling sign of the policy rift is Musk’s criticism of Peter Navarro, one of Trump’s top trade advisors, particularly on tariff policy.
Musk publicly called Navarro a “moron,” adding: “Navarro is dumber than a sack of bricks.”
This story was originally featured on Fortune.com
https://fortune.com/img-assets/wp-content/uploads/2025/04/GettyImages-2206428974_7c228c-e1744883328128.jpg?resize=1200,600 https://fortune.com/2025/04/17/musk-trump-china-policy-us/Eleanor Pringle
