Kimbal Musk, restaurateur, entrepreneur, and younger brother of White House advisor Elon Musk, ignited a storm of discussion on social media this week with a sharply worded critique of President Donald Trump’s economic policies — specifically, his use of tariffs. In an April 7 post on X, Musk wrote:
“Who would have thought that Trump was actually the most high tax American President in generations.”
The statement, part of a longer post rebuking the tariffs, echoes growing discontent among business owners, economists, and even some administration insiders who argue that Trump's sweeping tariffs amount to an invisible but burdensome tax on American consumers and businesses.
Tariffs: The Hidden Tax
While tariffs are not collected from individual taxpayers directly, they function as taxes on imported goods. When the government imposes a tariff — say 25% on steel or 10% on electronics — the cost is typically absorbed by the importer, which then passes at least part of that added expense to the next link in the supply chain. Ultimately, it’s consumers who pay higher prices at the register.
Kimbal Musk, co-founder of The Kitchen restaurant group and a board member at his brother Elon’s company Tesla (TSLA), emphasized this in follow-up commentary: "A tax on consumption also means less consumption. Which means less jobs. Which in turn leads to less consumption. And then even less jobs."
Economists widely agree. Tariffs can protect select industries in the short term but risk suppressing consumer spending, increasing inflation, and straining global supply chains — especially in sectors like food, manufacturing, and automotive, all of which rely on imported materials.
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How Trump’s Tariffs Compare to Past Administrations
Kimbal Musk’s post stands out not just for its message, but for its comparison of Trump to past presidents more traditionally associated with high tax regimes.
Historically, Democratic presidents like Lyndon B. Johnson and Franklin D. Roosevelt implemented elevated tax policies, particularly on income and corporations, to fund large-scale social programs like Medicare, the New Deal, and the Great Society. More recently, President Barack Obama enacted new tax provisions under the Affordable Care Act, including increased Medicare payroll taxes for high earners.
President Joe Biden, during his term, proposed a number of tax increases, including raising the corporate minimum tax to 15% , a proposed increased capital gains taxes for top earners, and his fiscal year 2025 budget included the “9th largest tax increase since 1940.”
However, Trump’s economic legacy — despite his 2017 Tax Cuts and Jobs Act, which lowered corporate tax rates — is now being reframed in light of his expansive and enduring use of tariffs. Since returning to office in January, he has ramped up import taxes across a wide range of goods from China, Europe, and Latin America. Some economists estimate these tariffs amount to hundreds of billions in new tax burdens on consumers, disproportionately affecting middle-income Americans through higher everyday costs.
While Trump recently paused the implementation of many of these tariffs to give himself time to cut deals, the markets are still down considerably. The S&P 500 Index ($SPX) rallied 9.5% on Wednesday following the pause, but it’s still down 11.2% from its peak.
Diverging Musk Perspectives
Kimbal’s criticism also stands in contrast with his brother Elon Musk’s complex relationship with the Trump administration. Elon currently serves as the unofficial head of the Department of Government Efficiency (DOGE), a Trump-created agency tasked with slashing federal costs and consolidating regulatory oversight. Although Elon has supported many aspects of Trump’s economic platform, including deregulation and domestic job creation, he has recently clashed with Trump’s top trade advisor, Peter Navarro, over the damage tariffs are inflicting on Tesla and other tech firms.
In a recent post, Elon mocked Navarro’s Harvard PhD in economics and dismissed him as someone who has “built nothing.” Navarro, in turn, called Musk a “car assembler,” criticizing Tesla’s reliance on foreign-made components.
Despite their different tones, the Musk brothers now appear to agree on one thing: tariffs are hurting America more than they’re helping.
