Elon Musk is taking a major financial hit as markets react to President Trump’s escalating trade war with China.

Tariffs Trigger Tesla Slump

The Tesla CEO’s net worth dropped to $297.8 billion on Monday, falling below the $300 billion mark for the first time since November 2024. This sharp decline follows a rough stretch for global markets after Trump announced sweeping tariffs—moves that are now impacting even his close allies.

According to the Bloomberg Billionaires Index, Musk lost $4.4 billion on Monday alone due to Tesla’s falling stock. That came on top of a staggering $31 billion wipeout from last Thursday and Friday, bringing his 2025 losses to nearly $134.7 billion.

On April 7, Musk ranked as the sixth-biggest loser on Bloomberg’s list of the world’s 500 wealthiest people. The index as a whole shed $271 billion that day, marking its third-worst performance ever.

China’s Retaliation Rattles Investors

The downturn comes after China fired back at Trump’s tariffs with its own 34% duties on U.S. products. The move stoked fears of a deepening trade war and possible U.S. recession, sending shockwaves through global markets.

While Musk has typically maintained a public friendship with Trump, that relationship is being tested. Reports indicate that Musk, who also heads the Department of Government Efficiency (DOGE), personally urged Trump to reconsider the latest tariffs. According to The Washington Post, he directly appealed to the president in a bid to soften the aggressive trade stance—so far, unsuccessfully.

Tariff Tensions Escalate

Trump’s administration is preparing to layer on an additional 50% tariff on Chinese goods, compounding the already announced 34%. The escalating situation has investors bracing for more volatility as international tensions rise and Wall Street reacts to the uncertainty.