SpaceX's Starlink Benefits from Trump Administration's Tariff Trade War, Leaked Memos Reveal

Max Carter

Max Carter

May 07, 2025 · 3 min read
SpaceX's Starlink Benefits from Trump Administration's Tariff Trade War, Leaked Memos Reveal

In a startling revelation, leaked State Department memos obtained by the Washington Post have exposed the Trump Administration's efforts to promote SpaceX's satellite internet service, Starlink, as a means to gain leverage in international trade and tariff negotiations. The memos suggest that the US government has been actively pushing countries to adopt Starlink, with some nations believing that doing so could help ease trade tensions with the US.

The leaked documents highlight the case of Lesotho, a small African nation that has been slapped with a 50% tariff by the US. According to a memo, Lesotho's recent 10-year deal with Starlink was seen as a way to "lubricate" its trade and tariff negotiations with the US. This raises concerns about the potential conflict of interest, given Elon Musk's dual roles as the founder and CEO of SpaceX and one of the Trump Administration's closest advisors.

A White House spokesperson has denied any conflict of interest, claiming that the Administration's actions are driven by a desire to promote American businesses and counter Chinese competition. The State Department has also defended its actions, describing the promotion of an American satellite company as "patriotic" in light of China's growing influence in the global satellite industry.

However, critics argue that the Administration's actions may be seen as an abuse of power, using trade and tariff policies to benefit a private company with close ties to the government. The incident has sparked concerns about the blurring of lines between public policy and private interests, and the potential for crony capitalism to undermine fair competition in the global market.

The implications of this revelation are far-reaching, with potential consequences for the global satellite industry, international trade relations, and the integrity of the US government's decision-making processes. As the world becomes increasingly dependent on satellite technology, the role of governments in promoting and regulating these industries will come under greater scrutiny.

In the meantime, SpaceX has remained silent on the matter, declining to comment on the leaked memos. As the story continues to unfold, it remains to be seen how the company will respond to these allegations and what steps the US government will take to address concerns about its role in promoting Starlink.

One thing is clear, however: the intersection of technology, politics, and trade has created a complex web of interests and influences that demand closer examination. As the tech industry continues to shape the global economy, it is essential that we scrutinize the relationships between governments, corporations, and entrepreneurs to ensure that innovation serves the greater good, rather than the interests of a privileged few.

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