Starlink, a venture by Elon Musk, covertly experiences advantages due to tariff negotiations
In the final years of the Trump administration, a unique dynamic emerged between the US government and Elon Musk's satellite internet company, Starlink. The administration encouraged countries to do business with US-based satellite internet firms, including Starlink, potentially indicating a strategy to expand its business opportunities amidst Trump's tariff regime.
This strategic alignment between Starlink and countries seeking to navigate or avoid tariffs imposed under the Trump administration became increasingly evident after the tariffs were launched. The US State Department actively pushed countries to approve American satellite companies such as Starlink, indicating a strategic effort to bolster Starlink’s global footprint despite tariff tensions.
Starlink’s availability is expanding globally, with the company recently striking deals to provide satellite internet service in Bangladesh, the Democratic Republic of Congo, India, Pakistan, Somalia, and Vietnam. This expansion is not a coincidence, as SpaceX (Starlink’s operator) has been involved in geopolitical negotiations and supply chain adjustments related to tariffs and geopolitical risks.
However, there is no outright public confirmation that Starlink’s deployment was specifically designed to circumvent tariffs. The State Department’s push can be seen as part of broader US economic and strategic policies.
The Trump administration imposed tariffs on goods from countries like Canada and Mexico, creating financial pressures for most Americans as the cost of goods increased. Yet, the US government under Trump also leveraged technology companies such as Starlink for geopolitical influence by pushing approval of their services internationally.
This strategic approach is not limited to Starlink. The US is using the leverage of satellite internet firms to push American products, not just to benefit Elon Musk financially. The US is aiming to capture markets before its competitors, like Chinese companies rapidly developing an alternative to Starlink.
This dynamic is particularly evident in the case of Lesotho, a small nation that was subjected to a 50% tax under Trump’s tariff regime. Two weeks after the tariffs were announced, Lesotho signed a deal with Starlink to make the company Lesotho’s first-ever satellite internet service. This move can be seen as an attempt by Lesotho to demonstrate goodwill to the United States by licensing Starlink.
Other nations may be considering strategically aligning themselves with Starlink to gain relief from the Trump administration's tariffs. The internal State Department communication suggests that Lesotho is not alone in this approach.
In summary, the US administration under Trump did encourage Starlink’s international approval as part of economic and geopolitical strategy amid tariff disputes. While direct evidence of Starlink explicitly aligned to help countries avoid tariffs is limited, the alignment appears more strategic and indirect: promoting American tech and satellite services globally despite or alongside tariff policies. This approach suggests a broader strategy to maintain US tech dominance and influence.
- The US administration's encouragement of countries to do business with US-based satellite internet firms, such as Starlink, indicates a strategic effort to expand its business opportunities amidst Trump's tariff regime.
- The US State Department's push for countries to approve American satellite companies like Starlink can be seen as part of a broader US economic and strategic policy.
- This strategic alignment between countries and Starlink, in order to gain relief from the Trump administration's tariffs, may be considered by other nations as well.
- The US is using the leverage of satellite internet firms like Starlink to push American products on a global scale, not just for Elon Musk's financial benefit, but to capture markets before competitors like Chinese companies rapidly developing an alternative to Starlink.
