The Trump administration’s tariff policy has created financial challenges for many Americans due to an increase in the cost of goods. However, one individual appears to benefit from this situation: Elon Musk. According to a report from the Washington Post, Musk’s satellite internet company, Starlink, has garnered increased interest from countries seeking to mitigate the effects of Trump’s tariffs.
The Post emphasizes the case of Lesotho, a small nation that faced a 50% tax when Trump announced “reciprocal” penalties, based on a perplexing formula. Two weeks after these tariffs were declared, Lesotho’s leaders met with Starlink representatives, signing a deal for the country’s first satellite internet service.
Coincidences might be common, yet, as reported by the Post, there have been numerous similar occurrences involving Starlink. During the tariff discussions and implementation, Starlink secured agreements with Bangladesh, the Democratic Republic of Congo, India, Pakistan, Somalia, and Vietnam for service provision.
In Lesotho’s case, an internal memo obtained by the Post suggested an effort to foster goodwill as the nation negotiated a trade deal with the U.S. The memo indicated that licensing Starlink was seen as a gesture of goodwill towards U.S. businesses. It’s conceivable that other countries might adopt a similar strategy, aligning with a company associated with a Trump administration member to potentially gain trade benefits.
While the Trump administration has not explicitly endorsed Starlink to these countries, it has encouraged them to collaborate with U.S.-based satellite internet companies, with Starlink being a significant contender. For instance, India reportedly expedited the approval process for Starlink in an attempt to facilitate trade agreements, according to the Post.
Though enriching Musk may not be the primary intent of the administration’s strategy, it aligns with the goal of preemptively capturing markets before Chinese companies offer competitive alternatives. This effort underscores the administration’s push to promote American products.
