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tariffs
Trump’s Chaotic Tariffs Benefit His Best Buddy Elon (As We Predicted)
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.
May 23, 2025
A series of internal government messages reveal how U.S. embassies and the State Department have pushed governments to clear regulatory barriers for Elon Musk’s Starlink. In the messages obtained by The Washington Post, Secretary of State Marco Rubio directs U.S. officials to push for permit approvals for the satellite internet service. Governments facing chaotic tariff threats have gotten the message and are rolling out the red carpet for Musk in the hope of avoiding costly tariffs.
This scandal has drawn widespread attention and condemnation, with dozens of members of Congress and senators calling for investigations into Musk and the government agencies that may have pressured countries on his behalf.
While this corruption is shocking, it’s hardly surprising. Before the “Liberation Day” tariff announcement, Public Citizen issued a report documenting how the tariff process in President Donald 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.
U.S. Government’s Sales Pitch for Starlink
Elon Musk has been pushing for Starlink expansion across the world for years, but some countries have been wary of permitting the service to enter their markets for a number of reasons. For example, experts have raised concerns about threats to “data sovereignty,” a group or individual’s right to control and maintain their own data. To the extent that communications on the Starlink network are routed through the U.S., they may be accessible to U.S. law enforcement and intelligence agencies.
And it is not unreasonable for countries to consider that access to Starlink services could be weaponized and a nation’s internet access held hostage at the whim of a single man or wayward administration. Alarmingly, claims abound that the U.S threatened to withdraw Ukrainian access to Starlink if the country did not sign the U.S.-Ukraine minerals agreement (though this has been denied by Musk).
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. For some countries weighing the pros and cons, the chance that approval for Starlink helps stave off tariffs has changed the equation.
Trump and his cronies have made it clear since Day 1 of his 2015 presidential primary campaign that he will bend public policy to benefit himself and his wayward inner circle of Yes Men.
The Washington Post exposé highlighted several diplomatic cables from various embassies commenting on foreign governments’ decision-making on the satellite internet service.
For example, aMarch 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.
Another cable from April 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.
The Pressure Is Working—At the Expense of Public Interest Policies
Sec. Rubio “encouraged Vietnam to address trade imbalances,” in an early March 2025 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.
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. When Trump announced a punishing 37% reciprocal tariff on Bangladesh, the export-dependent country wrote a letter to Trump requesting leniency 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.
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 sellout 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.” Subtle.
Lesotho is facing a 50% Trump tariff rate.
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 applied for a license. The Washington Postnoted 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 have introduced a controversial measure to exempt Starlink from the Black empowerment law.
South Africa is facing a 30% Trump tariff rate.
Musk has been looking to break into the Indian market for years—even launching, then retracting, services in 2022 without the necessary licenses. Around the time of the Bangladesh meeting, Musk also 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 of 2025, India dropped two proposed security rules that Starlink had refused during earlier discussions.
India is facing a 26% Trump tariff rate.
In March of 2024, Starlink was prohibited in theDemocratic Republic of the Congo, citing concerns from military experts who warned it could be misused by armed insurgent groups including M23. That ban was recently lifted, and Starlink launched in May 2025. This policy reversal comes at a time of mounting frustrations from Congolese civil society over secretive dealmaking with the United States. The resurgence of rebel group M23 has pushed President Felix Tshisekedi’s government toward a controversial deal that has the private military corporation Blackwater’s Erik Prince at the center. The deal would exchange U.S. security assistance for access to DRC critical minerals, not unlike the recent U.S.-Ukraine minerals deal.
The DRC is facing an 11% Trump tariff rate
The list goes on. Mali, Somalia, Namibia, 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%.
The Blueprint
Paving the way for Starlink in other countries is just the tip of the iceberg. Trump and his cronies have made it clear since Day 1 of his 2015 presidential primary campaign that he will bend public policy to benefit himself and his wayward inner circle of Yes Men. Anything that can limit their personal gain is on the chopping block.
The attacks on other governments’ legitimate domestic policies aren’t just predictable, they’re predicted. In detail. Not just by Trump’s erratic speeches and TruthSocial policy changes, but across nearly 400 pages, readily available to us all at ustr.gov: the 2025 National Trade Estimate (NTE) Report.
This year’s report targets a litany of public interest laws and policies adopted by countries around the world to regulate the digital ecosystem. Notably, the 2025 NTE report calls out the satellite licensing and approval processes in Brazil, South Korea, and Malaysia, and points out that a number of countries impose import restrictions on certain types of internet and telecommunications equipment. Removing these would smooth regulatory hurdles for Starlink in those countries. The NTE report is also chock-full of other privacy, AI accountability, and competition policies that Big Tech companies want to get rid of around the world.
The report was drafted in large part based on comments submitted by corporations in October 2024 under then-President Joe Biden and before the presidential election. Given the Trump administration’s brazen willingness to openly push the agenda of his billionaire buddies, we can now expect even more extreme demands from companies like Starlink. For instance, in a submission to the Trump administration ahead of the “reciprocal tariffs” announcement, SpaceX complained about governments imposing “non-tariff” barriers impeding global roll-out of Starlink, including having to pay governments for access to spectrum—a standard practice in a number of countries, including the U.S.
As Trump wields his chaotic tariff threats to extract concessions in dozens of closed-door negotiations, we should not be surprised to see even more Big Tech giveaways and lucrative favors for Musk. It is imperative that Congress demand transparency in these trade talks and hold the Trump administration accountable for such inappropriate coercion.
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Dems Demand Probe of Companies Using Trump Tariffs as 'Excuse to Price Gouge'
"The new tariffs have created a cloud of uncertainty that gives companies cover to raise prices on all goods," the lawmakers wrote.
May 20, 2025
Dozens of congressional Democrats are urging the country's top antitrust enforcer to probe the extent to which big companies are taking advantage of Trump administration tariffs, or confusion around the tariffs, to boost prices, and to take action against any that are inappropriately raising prices in excess of cost increases, also known as price gouging.
In a letter sent last week, 36 Democrats asked Republican Federal Trade Commission (FTC) Chair Andrew Ferguson to answer questions about his decision to effectively shut down an inquiry into so-called "surveillance pricing" practices—a move that, according to the outlet The Lever, has emboldened consultants who peddle surveillance pricing tools to advise companies on how to hike prices in response to tariffs, or even just the threat of tariffs.
Surveillance pricing refers to a practice when companies collect personal information like location or browsing history to set different prices for specific consumers for the same goods with the aim of generating more profit.
In January, the FTC released the initial findings of a surveillance pricing market study, and then opened up a public comment period for consumers and businesses around surveillance pricing. But the FTC under Ferguson, who replaced former Chair Lina Khan in January, shut down the comment period, which was supposed to run through mid-April.
"The message that is coming out of this administration… is that the watchdog is gone and companies feel emboldened to rip people off," a former FTC official told The Lever.
"President [Donald] Trump's on-again, off-again tariffs build an especially fertile environment for price gouging," the letter states. "The new tariffs have created a cloud of uncertainty that gives companies cover to raise prices on all goods, regardless of whether they are subject to new tariffs or whether their costs have meaningfully increased, above and beyond what is necessary to cover any cost increases."
Sens. Ruben Gallego (D-Ariz.), Sheldon Whitehouse (D-R.I.), Elizabeth Warren (D-Mass.), Cory Booker (D-N.J.), and Rep. Rosa DeLauro (D-Conn.) led their colleagues on the letter. A statement from Gallego's office last week framed the letter as a demand to "prevent corporations from using Trump's reckless tariffs as an excuse to price gouge hardworking Americans."
The Trump administration has imposed 10% baseline tariffs and imposed higher duties on goods coming from China. Last week, the Trump administration and China agreed to lower the tariffs they had imposed on one another. China will now be subject to a 30% tariff, whereas before many goods coming to the U.S. from China previously had at least a 145% tariff. Negotiations with other countries are ongoing.
Citing The Lever's reporting, the Democratic lawmakers are urging Ferguson to use his authority under Section 6(b) of the Federal Trade Commission Act to compel big companies to report their costs and retail and wholesale prices dating back to the day after Trump was elected in November, and also to report how much tariffs have increased their costs. The group is urging the FTC to use its power to investigate and prosecute companies who are engaging in "unfair or deceptive acts" regarding commerce.
The Democrats are also demanding answers, by May 30, to a number of questions around the end of the inquiry into surveillance pricing practices, such as why Ferguson chose to close the forum for public comments early, and whether he met with any of the businesses subject to the inquiry in advance of the termination of the public comment.
The Lever reported that some large companies who were subject to the inquiry gave money to Trump's inauguration fund.
Common Dreams as reached out to the FTC and Gallego's office for comment.
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Trump Tells Walmart to 'Eat' the Cost of His Tariffs
"If you think Walmart is going to eat the costs of tariffs, then you don't understand Walmart's greed and how it exploits its customers and workers to make its billions," said one observer.
May 17, 2025
U.S. President Donald Trump verbally thrashed Walmart on Saturday following the retailer's announcement this week that it expects to raise prices on some goods as a result of tariffs imposed by the White House.
On his social media platform Truth Social, Trump wrote that Walmart should "STOP trying to blame Tariffs as the reason for raising prices throughout the chain."
"Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I'll be watching, and so will your customers!!!" he wrote.
On Thursday, leaders at Walmart said that they will have to raise prices in response to tariffs imposed by the Trump administration even after lowered duties on Chinese imports were announced.
The Trump administration has placed 10% universal tariff on goods entering the United States and imposed higher tariffs on goods coming from China—though on Monday the two countries said they reached a deal to temporarily lower the tariffs they had imposed on one another while they try to hash out a trade deal. Imports from China will now be subject to a 30% tariff, whereas before many goods coming to the U.S. from China previously had at least a 145% tariff.
CEO Doug McMillon said that Walmart, which is known for its low prices, will do its best to keep prices low, but that "given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins."
One observer expressed skepticism that Walmart would heed Trump's demand.
"If you think Walmart is going to eat the costs of tariffs, then you don't understand Walmart's greed and how it exploits its customers and workers to make its billions," saidMelanie D'Arrigo, the executive director of a group fighting for universal healthcare in New York State.
Economists expect the cost of tariffs, which are a form of tax applied on imports that can be used to support homegrown industries that employ American workers, to be largely passed on from businesses to American consumers.
In an analysis of the Trump administration's tariff regime as of late April, with the higher duties on Chinese goods in place, the Institute on Taxation and Economic Policy found that in 2026 the poorest Americans would see the biggest tariff-induced tax hikes compared to other income groups.
Some observers also used Trump's social media post to highlight that in the past he has claimed that other countries would bear the brunt of tariffs.
The social media posts echoes a recent episode when, last month, after a news report that Amazon would display tariff-based price increases next to the price of products online, White House Press Secretary Karoline Leavitt called such a move "a hostile and political act." After a call between Trump and Amazon founder Jeff Bezos, a company spokesperson said displays had been considered for only a section of the site but wouldn't be happening.
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