[CTC] Fwd: Trump's Tariffs Benefit Elon (As We Predicted)

Sat May 24 09:45:41 PDT 2025

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From: Melinda St. Louis <mstlouis at citizen.org>
Date: Thu, May 22, 2025 at 1:55 PM
Subject: Trump's Tariffs Benefit Elon (As We Predicted)
To: arthur at citizenstrade.org <arthur at citizenstrade.org>

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https://www.citizen.org/news/trumps-chaotic-tariffs-benefit-his-best-buddy-elon-as-we-predicted/

Trump's Chaotic Tariffs Benefit His Best Buddy Elon (As We Predicted)

For Immediate Release: May 22, 2025

Contact: Emily Leach, eleach at citizen.org

WASHINGTON, D.C. — Today, Rep. Greg Casar led more than 30 colleagues
<https://www.citizen.org/wp-content/uploads/casar-investigate-starlink-05-2025.pdf>
in
demanding action on reports of the Trump administration strong-arming
countries to benefit Elon Musk in exchange for tariff relief. This letter
follows U.S. Senators calling for investigations into Musk
<https://www.warner.senate.gov/public/index.cfm/pressreleases?ID=34ADB1E6-15BB-4126-9076-D3587BB8313B>
and
the government agencies
<https://www.warner.senate.gov/public/index.cfm/pressreleases?ID=34ADB1E6-15BB-4126-9076-D3587BB8313B>
that
may have pressured countries on Musk’ behalf.

Public Citizen provides the following additional context:

Elon Musk has been pushing for Starlink expansion across the world for
years, but some countries have been wary of permitting the satellite
internet service to enter their markets. But now, Musk’s proximity to the
White House and Trump’s innermost circle has provided him with powerful new
leverage to push his businesses on foreign governments: the threat of
Trump’s chaotic tariffs.

A Public Citizen report
<https://www.citizen.org/article/trump-loves-tariffs-just-not-for-the-rich-and-well-connected/>
from
March documents how the tariff process in Trump’s first term enabled a quid
pro quo spoils system that rewarded the rich and well-connected. We warned
that Musk’s powerful and ill-defined role in the U.S. government could lead
other countries to decide that giving special privileges to Musk’s
companies would help them earn brownie points with the Trump
administration. As predicted,Trump’s announcement of sweeping “reciprocal
tariffs”, has led vulnerable countries — especially in the Global South —
to roll out the red carpet for Starlink.

*South Africa:* Musk has infamously complained on social media over South
Africa’s
<https://www.reed.senate.gov/news/releases/reed-and-whitehouse-seek-to-hold-elon-musk-accountable-for-alleged-abuse-of-white-house-position-for-personal-gain>
post-Apartheid
reparations rules, claiming that Starlink is “not allowed to operate in
South Africa simply because [he’s] not black [sic]” — despite having never
even submitted <https://www.bbc.com/news/articles/cly3d8gd8mno> an
application for a license. The Washington Post noted
<https://www.washingtonpost.com/opinions/2025/04/30/elon-musk-starlink-bangladesh-tariffs/>
that
“the story about Bangladesh was making its way around political and
business circles in South Africa,” and it’s assumed that approval of a
Starlink license has become “a prerequisite for getting a favorable trade
deal.” Legislators introduced a controversial measure to exempt Starlink
from the Black empowerment law. *South Africa is facing a 30% Trump tariff
rate.*

*Bangladesh:* A Bangladeshi representative visited the White House in
mid-February to offer concessions to stave off the promised tariffs, and
was brought to a surprise meeting
<https://www.washingtonpost.com/opinions/2025/04/30/elon-musk-starlink-bangladesh-tariffs/>
with
Elon Musk. Musk wanted to discuss the ongoing negotiations between Starlink
and Bangladesh’s regulatory agency — the implication being that Bangladesh
would not get favorable trade terms from the U.S. if Starlink wasn’t
permitted. Early April saw
<https://www.washingtonpost.com/opinions/2025/04/30/elon-musk-starlink-bangladesh-tariffs/>Bangladesh’s
Telecommunication Regulatory Commission issue what was described as
<https://www.reed.senate.gov/news/releases/reed-and-whitehouse-seek-to-hold-elon-musk-accountable-for-alleged-abuse-of-white-house-position-for-personal-gain>
“the
swiftest recommendation” in its history for a Starlink license. The
export-dependent country then wrote a letter to Trump
<https://www.thedailystar.net/business/news/yunus-requests-trump-postpone-tariffs-3-months-3865631>
requesting
leniency on tariffs and detailing the ways in which it was already taking
action to benefit U.S. businesses — including its access for Starlink.
*Bangladesh
is facing a 37% Trump tariff rate.*

*Cambodia:* A March cable
<https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/>
from
the U.S. embassy in Cambodia explains it “has observed the Cambodian
government — likely due to concern over the possibility of U.S. tariffs —
signal its desire to help balance our trade relationship by promoting the
market entry of leading U.S. companies such as Boeing and Starlink.”
Leaders of the American Chamber of Commerce in Cambodia advised the
Ministry of Economy and Finance to take “decisive action in offering
concessions to the United States… recommending that Cambodia… expeditiously
approve Starlink’s market entry request.” *Cambodia is facing a 49% Trump
tariff rate.*

*Djibouti:* An April cable
<https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/>
highlighted
that Starlink was pushing for a license to operate in Djibouti. State
Department staffers noted Starlink’s approval would be an opportunity to
open the country’s market and boost “an American company.” Embassy
officials “will continue to follow up with Starlink in identifying
government officials and facilitating discussions.” *Djibouti is facing a
10% Trump tariff rate.*

*Vietnam:* Sec. of State Marco Rubio “encouraged Vietnam to address trade
imbalances,” in an early March phone call
<https://www.state.gov/secretary-rubios-call-with-vietnam-deputy-prime-minister-and-foreign-minister-bui-thanh-son/>
with
the nation’s Foreign Ministry. Shortly thereafter, the Vietnamese
government laid out a battery of appeasements to the Trump administration,
including a waiver
<https://www.washingtonpost.com/opinions/2025/04/30/elon-musk-starlink-bangladesh-tariffs/>
of
their domestic partnership requirements, enabling the launch of a five-year
pilot program with Starlink. An unnamed source speaking with Reuters
<https://www.reuters.com/technology/space/vietnam-paves-way-musks-starlink-seen-olive-branch-amid-us-tariff-threats-2025-02-18/>
said
this can be seen as “an olive branch” to Musk and his company, a
“demonstration from the Vietnamese side that they can play the
transactional diplomacy game if the Trump administration wants that.” *Vietnam
is facing a 46% Trump tariff rate.*

*Lesotho:* Lesotho
<https://groundup.org.za/article/lesotho-gives-in-approves-starlink-licence/>
also
granted a license to Starlink in April, despite local objections to
foreign-owned businesses. Local NGOs called the licensing decision “a
betrayal – a shameful sell-out by a government that appears increasingly
willing to place foreign corporate interests above the democratic will and
long-term developmental needs of the people of Lesotho.” An internal State
Department memo states, “As the government of Lesotho negotiates a trade
deal with the United States, it hopes that licensing Starlink demonstrates
goodwill and intent to welcome U.S. businesses.” *Lesotho is facing a 50%
Trump tariff rate.*

*India: *Musk has been looking to break into the Indian
<https://www.reuters.com/business/media-telecom/india-agrees-conditional-nod-starlink-operations-country-cnbc-tv18-reports-2025-05-08/#:~:text=Starlink%20has%20been%20waiting%20since,reasons%20including%20national%20security%20concerns.>
market
for years — even launching, then retracting
<https://techcrunch.com/2025/05/08/starlinks-launch-in-india-now-a-matter-of-when-not-if/#:~:text=In%202022%2C%20SpaceX%20was%20reprimanded,before%20getting%20the%20necessary%20licenses>,
services in 2022 without the necessary licenses. In mid-February, Musk met
with Prime Minister Narendra Modi near the White House. According to India
Today
<https://www.indiatoday.in/india/story/pm-modi-meets-elon-musk-washington-dc-blair-house-bilateral-talks-with-donald-trump-2679672-2025-02-13>,
a “key agenda” item was Starlink’s pending approval in India. In May,
India dropped
two proposed security rules
<https://timesofindia.indiatimes.com/technology/tech-news/elon-musks-starlink-secures-crucial-approval-to-start-its-india-operations/articleshow/120998330.cms>
that
Starlink refused during earlier discussions. *India is facing a 26% Trump
tariff rate.*

*Democratic Republic of Congo: *In March of 2024, Starlink was prohibited
in the Democratic Republic of the Congo
<https://www.reuters.com/science/starlink-is-now-available-congo-musk-says-2025-05-04/>,
citing concerns from military experts who warned it could be misused by
armed insurgent groups. That ban was recently lifted, and Starlink launched
in May this year. This policy reversal comes at a time of mounting
frustrations
<https://peoplesdispatch.org/2025/04/20/congolese-activists-decry-us-congo-mineral-deal/>
from
Congolese civil society over secretive dealmaking with the United States. *The
DRC is facing an 11% Trump tariff rate.*

The list goes on.
<https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/>
Namibia <https://www.bbc.com/news/articles/cly3d8gd8mno>, Mali
<https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/>
, Somalia
<https://www.reuters.com/world/africa/musk-says-starlink-now-available-somalia-2025-04-13/>
and
others are also considering regulatory approval of Starlink and facing
varying degrees of resistance from civil society. *Namibia is facing a 21%
Trump tariff rate, with Mali and Somalia at 10%.*

Paving the way for Starlink in other countries is just the tip of the
iceberg. Big Tech companies are likely to be the big winners in the
secretive trade talks Trump is holding under threat of tariffs. The report
that Trump waved
<https://www.citizen.org/news/statement-on-national-trade-estimates-report-and-coercive-tariffs/>
around
during his “Liberation Day” tariff announcement is chock-full
<https://www.citizen.org/article/president-trumps-reciprocal-tariffs-are-nothing-but-a-shakedown-on-behalf-of-big-tech/>of
privacy, AI accountability, competition and other public interest policies
to regulate the digital ecosystem that Big Tech companies want to get rid
of around the world.

###

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<https://www.citizen.org/news/type/press/>**, **press
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