In a recent development concerning international trade, Germany's economy minister, Robert Habeck, expressed strong disapproval of Elon Musk's suggestion for establishing a zero-tariff framework between the United States and Europe. Habeck characterized Musk's remarks as a reflection of 'weakness' amid escalating economic challenges.

'I think it's a sign of weakness — maybe of fear,' Habeck stated during a press conference on Monday. He further suggested that if Musk is genuinely concerned about the tariff situation, he should engage directly with President Trump to advocate for a resolution before proposing such sweeping changes. 'Before we're talking about zero tariffs, let's stop the mess you've just made in the last week,' Habeck urged.

Musk's comments were made on Saturday, where he advocated for a system of no tariffs between the US and Europe, just days following President Trump’s controversial announcement of new baseline reciprocal tariffs affecting numerous trading partners, including a significant 20% tariff on goods imported from the European Union.

Habeck did not hold back in his criticism, labeling Musk's proposal as 'ridiculous.' He interpreted Musk's suggestion as an indication that the billionaire entrepreneur recognizes the precarious position of his own companies and the broader economic landscape. 'The only interpretation I have is that he now sees that his own companies, but even the economies, are going to crumble because of the mess they have made. So, he's afraid,' Habeck added.

The immediate aftermath of Trump's tariff declaration saw a turbulent response in the stock market. The S&P 500 index experienced a sharp decline, plummeting 10% within just two days, while the Nasdaq 100 entered a bear market—its first since 2022. Investors reacted nervously, fearing prolonged economic instability, and on Monday, the situation worsened as it appeared Trump was unlikely to reverse his tariff decisions. This has led to concerns about potential retaliatory measures from foreign nations.

In a related context, European Commission President Ursula von der Leyen announced last week that the EU was in the process of finalizing a comprehensive package of countermeasures in response to the newly imposed steel tariffs. She emphasized the EU's commitment to protect its interests and businesses in light of these developments.

While countries like the UK and Australia have indicated a reluctance to retaliate against the tariffs, major players such as China and Canada have committed to taking responsive actions. The global trading landscape continues to shift as analysts revise their year-end market forecasts, now warning of increased risks of recession as trade tensions heighten.