Trump Tariff Pressure Reportedly Opens Global Doors For Elon Musk’s Starlink As Nations Rush To Show ‘Goodwill’ – Tesla (NASDAQ:TSLA)

Countries facing U.S. tariffs are reportedly increasingly granting licenses and approvals to Elon Musk’s Starlink — the satellite internet arm of SpaceX — as part of efforts to smooth trade relations with the Donald Trump administration.

What Happened: For example, just weeks after Trump announced a 50% tariff on goods from Lesotho, the small African nation approved Starlink’s first-ever satellite internet license, set to last 10 years, reported the Washington Post. 

According to internal State Department cables obtained by the publication, Lesotho hoped the decision would “demonstrate goodwill and intent to welcome U.S. businesses” as it negotiated trade deals.

Lesotho isn’t alone. Countries like India, Cambodia, Somalia, Bangladesh, Pakistan, Vietnam, and the Democratic Republic of Congo have also made moves to accommodate Starlink, often during or after trade talks.

See Also: As Elon Musk’s SpaceX Adds 28 Starlinks, Research Flags Climate Impact From Deorbiting Satellites

In India, two sources familiar with the matter told the publication that Starlink approvals were sped up in part because local officials believed it would help cement a broader trade deal with Washington.

While the U.S. government has not explicitly demanded regulatory favors for Starlink in exchange for lower tariffs, the cables show that Secretary of State Marco Rubio has instructed diplomats worldwide to advocate for American satellite companies, with Starlink often named directly, the report added.

This is part of the administration’s efforts to counter Chinese and Russian telecom providers.

“The only consideration in the Trump administration’s trade negotiations with other countries is what’s best for the American people — which includes American companies succeeding at home and abroad,” White House spokesperson Kush Desai told the publication. “President Trump will not tolerate any conflicts of interest, and every administration official is following ethical guidelines set by their respective agencies.”

Why It’s Important: Musk has contributed $277 million to Trump’s campaign and other Republican candidates during last year’s election cycle.

The Tesla Inc. TSLA CEO also holds a position within the administration, overseeing the Department of Government Efficiency Service, although he has indicated plans to step back from his day-to-day management role.

Starlink has reached 5 million customers as of March. The explosive growth of Starlink has played a major role in propelling SpaceX’s valuation to an estimated $350 billion as of December 2024, making it the most valuable privately held company in the world.

Despite this surge, some industry analysts remain cautious, questioning whether the company’s sky-high valuation can be sustained over the long term.

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Photo Courtesy: RossHelen On Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.