In an extraordinary and candid outburst, Kimbal Musk — entrepreneur, restaurateur, and board member at Tesla — publicly criticized President Donald Trump’s sweeping new tariff policy, which has triggered chaos in global markets and led to staggering personal losses for his brother, Tesla CEO Elon Musk.

The younger Musk’s unusually pointed remarks, posted on social platform X on April 7, come as President Trump’s aggressive new trade measures are already reshaping the economic landscape in the U.S. and abroad.

In just a matter of days, the tariffs have slashed stock valuations, sent indexes into a nosedive, and wiped tens of billions of dollars off the fortunes of major tech billionaires — Elon Musk among the most severely impacted.

“Who would have thought that Trump was actually the most high-tax American President in generations?” Kimbal Musk wrote. “Through his tariff strategy, Trump has implemented a structural, permanent tax on the American consumer.”

The controversy began when President Trump announced a bold and unprecedented expansion of tariffs on March 29 as part of what the White House is calling its “American Economic Sovereignty Initiative.” The policy includes a baseline 10% tariff on all imported goods, alongside targeted tariffs of up to 50% on products from countries labeled as trade “manipulators” — notably China, Germany, Mexico, and Vietnam.

The announcement sent Wall Street into immediate turmoil. On the day following the announcement, all three major U.S. indices — the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite — fell over 5%, marking the worst single-day drop since the onset of the COVID-19 pandemic.

Tesla, which has global supply chains stretching from Germany to China, was hit particularly hard. Its share price plummeted more than 16% in a single trading session, contributing to a cumulative 36% loss over Q1 2025 — the company’s worst quarter since 2022.

The fallout has cut Elon Musk’s net worth by approximately $30.9 billion, according to Bloomberg Billionaires Index.

He wasn’t alone: Amazon founder Jeff Bezos saw his wealth tumble by $27 billion, while Meta CEO Mark Zuckerberg lost over $18 billion.

But while most billionaires remained publicly silent, Kimbal Musk stepped forward with a blistering critique that echoed through financial media and political circles.

Kimbal, 52, is more than just Elon’s younger brother — he’s a seasoned entrepreneur, board member at Tesla, former SpaceX director, and founder of The Kitchen Restaurant Group. He has deep experience in both high-tech and consumer-facing industries, giving him a unique perspective on how tariffs ripple through supply chains and affect everyday Americans.

“Even if he is successful in bringing jobs on shore through the tariff tax,” Kimbal wrote in his thread, “prices will remain high and the tax on consumption will remain in the form of higher prices because we are simply not as good at making things.”

He continued with a stark warning about the broader economic feedback loop: “A tax on consumption also means less consumption. Which means fewer jobs. Which in turn leads to even less consumption. And then even fewer jobs.”

These comments reflect a growing concern among economists that Trump’s tariff strategy, while politically popular among certain voter blocs, may have serious long-term economic consequences.

Tesla is an especially vulnerable target in Trump’s new tariff era. While the company has increased its domestic production capacity — with Gigafactories in Texas and Nevada — many of its components are still sourced globally. Key materials for EV batteries, advanced computer chips, and manufacturing robotics come from countries now facing Trump’s highest tariffs.

The policy shift threatens to increase Tesla’s production costs significantly and erode its price competitiveness — not just in the U.S., but globally, as other countries consider retaliatory tariffs or realign their supply chains.

Internally, Tesla is facing additional strain. Reports have surfaced that several Tesla showrooms in major U.S. cities were vandalized following Trump’s announcement. Combined with the company’s stock collapse, these events have raised fresh concerns among investors about the stability of the company and the broader EV industry under Trump’s protectionist regime.

Elon Musk, though known for his unpredictable and often provocative commentary, has remained mostly subdued. However, he did make a cryptic remark during a rally on March 30, which many interpreted as a veiled reference to the impact of the tariffs.

“My Tesla stock and the stock of everyone who holds Tesla has gone — went roughly in half… This is a very expensive job, is what I’m saying.”

President Trump has made economic nationalism the centerpiece of his second-term agenda. In speeches and public appearances, he has framed the new tariffs as a necessary corrective to decades of “unfair” trade practices by foreign governments.

“We are finally standing up for American workers,” Trump said during a televised address from the White House. “The era of free trade that destroyed our middle class is over. This is about sovereignty, pride, and strength.”

However, analysts argue that the tariffs function effectively as a consumption tax — one that disproportionately affects middle- and lower-income Americans.

“These tariffs are regressive,” said Dr. Evelyn Hartman, trade economist at Georgetown University. “They raise the cost of everyday goods — electronics, clothing, food, vehicles — and that hits consumers at the register, not at the factory gate.”

Indeed, consumer advocacy groups have begun issuing warnings about imminent price hikes in electronics, home appliances, and vehicles. Early data from supply chain firms show increased wholesale prices already being passed along to retailers.

Kimbal Musk’s unusually vocal criticism of a sitting president could mark the beginning of a broader backlash from the business community — particularly in the tech sector, which had maintained a largely cautious and transactional relationship with Trump during both of his terms.

While some executives initially supported Trump’s deregulation and tax cuts, the shift toward protectionism has disrupted the very global frameworks that made Silicon Valley’s meteoric rise possible.

Kimbal’s comments may also suggest internal divisions among even Trump’s wealthier former allies. While Elon Musk has occasionally aligned with Trump on issues like free speech and deregulation, he has also clashed with the administration over environmental policy, unionization efforts, and now — silently but significantly — tariffs.

The question is whether other tech and business leaders will follow Kimbal’s lead, or whether fear of political retaliation will keep them silent.

Economists are now openly discussing the possibility that Trump’s tariffs — if not revised — could tip the economy into recession by early 2026. Already, retail sales are softening, and manufacturers are warning of layoffs if component costs continue to climb.

Meanwhile, on Capitol Hill, both Democrats and some moderate Republicans have expressed concerns about the scope and scale of the new trade measures. Hearings are expected later this month as lawmakers examine the legality of some of the President’s unilateral tariff decisions under the Trade Expansion Act.

Kimbal Musk’s public outcry is not merely a defense of his brother’s billions — it is a stark warning about the long-term consequences of turning inward in an increasingly interconnected global economy.

Whether President Trump’s trade strategy ultimately revitalizes American industry or stifles it under the weight of higher costs remains to be seen. But for now, the financial toll is clear — and the political and economic reckoning may only just be beginning.