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

WASHINGTON, D.C. — Rep. Greg Casar led more than 30 colleagues in demanding action on reports of the Trump administration strongarming countries to benefit Elon Musk in exchange for tariff relief. This letter follows U.S. Senators calling for investigations into Musk and the government agencies 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 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 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 an application for a license. The Washington Post noted 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 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 Bangladesh’s Telecommunication Regulatory Commission issue what was described as “the swiftest recommendation” in its history for a Starlink license. The export-dependent country then wrote a letter to Trump 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 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 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 with the nation’s Foreign Ministry. Shortly thereafter, the Vietnamese government laid out a battery of appeasements to the Trump administration, including a waiver of their domestic partnership requirements, enabling the launch of a five-year pilot program with Starlink. An unnamed source speaking with Reuters 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 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 market for years — even launching, then retracting, 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, a “key agenda” item was Starlink’s pending approval in India. In May, India dropped two proposed security rules 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, 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 from Congolese civil society over secretive dealmaking with the United States. The DRC is facing an 11% Trump tariff rate.

The list goes on. Namibia, Mali, Somalia 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 around during his “Liberation Day” tariff announcement is chock-full 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.