Elon Musk's Brother Kimbal Musk Calls Trump 'Most High Tax American President In Generations,' Warns Tariffs Are A 'Permanent Tax' On US Consumers

Tesla Inc. (NASDAQ:TSLA) board member Kimbal Musk criticized President Donald Trump‘s tariff policies Monday, calling him “the most high tax American President in generations” through his implementation of what Musk described as a “structural, permanent tax on the American consumer.”

What Happened: In a series of posts on X, Musk, the brother of Tesla CEO Elon Musk, argued that tariffs create a cycle of economic harm: “A tax on consumption also means less consumption, which means less jobs. Which in turn leads to less consumption. And then even fewer jobs.”

When asked why other countries would care about U.S. tariffs if American consumers bear the cost, Kimbal Musk responded: “Other countries care because a tax reduces consumption of their goods. Reduced consumption does not create more jobs in America. The net outcome is less jobs on both sides of the borders, and higher prices in America.”

See Also: Bitcoin Could Test $70K Amid Fears Of ‘Black Monday’ Panic, Says Analyst Van de Poppe, As Global Markets Slide On Trump Tariff Shock

Why It Matters: His comments come amid growing concerns from business leaders about tariff impacts. Mark Cuban recently warned that his Cost Plus Drugs company would have “no choice but to pass those costs on to consumers” if new tariffs on pharmaceutical imports from India take effect, potentially increasing prices on medications that many Americans rely on.

The tariff debate has intensified following Trump’s April announcement of sweeping new 10% tariffs affecting imports from 185 countries.

Small business owners have reported cutting employee hours and raising prices to offset higher import costs, while others warn about supply chain disruptions across industries ranging from solar panel installation to generic pharmaceuticals.

Trump has defended tariffs as necessary protection for American manufacturing, calling them “a beautiful word” that prevents foreign countries from “stealing our factories, our workers, and our jobs” during an October interview with finance expert Dave Ramsey.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.