Elon Musk's SpaceX satellite internet service Starlink benefits from Trump tariffs, internal documents reveal
Less than two weeks after President Donald Trump announced he would impose a 50% tariff on imports from the African nation of
Nations facing tariffs pushed to approve Elon Musk's Starlink, cables show - The Washington Post
https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/
SpaceX's Starlink has become a big benefactor of Trump's tariff trade war, leaked memos show | TechCrunch
https://techcrunch.com/2025/05/07/spacexs-starlink-has-become-a-big-benefactor-of-trumps-tariff-trade-war-leaked-memos-show/
Elon Musk, an adviser to President Trump, owns the aerospace manufacturer SpaceX, which develops the satellite internet business Starlink, which submitted a license application in April 2024 with the aim of gaining customers in Lesotho.
The license application remained unapproved, but shortly after President Trump announced a 50% tariff on Lesotho and called for negotiations on a trade agreement, the Lesotho government decided to grant Starlink a license to become the country's first satellite internet service, which will be valid for 10 years.
PUBLIC ANNOUNCEMENT – LICENSING OF THE FIRST SATELLITE INTERNET SERVICE IN LESOTHO – LCA
https://lca.org.ls/public-announcement-licensing-of-the-first-satellite-internet-service-in-lesotho/
The Washington Post obtained an internal State Department memo that stated, 'We hope that the Starlink license will demonstrate goodwill and intent to welcome American companies as the Lesotho government negotiates a trade agreement with the United States.'
Lesotho is not the only country that has decided to help Musk's company avoid U.S. tariffs. SpaceX signed sales contracts with two Indian suppliers in March 2025, and also has at least partial agreements in Somalia, the Democratic Republic of Congo, Bangladesh, Pakistan and Vietnam. The Washington Post reported that this is 'probably not an exhaustive list,' suggesting that SpaceX may have signed lucrative contracts in many other countries.
Internal government documents obtained exclusively by The Washington Post explain how the U.S. embassy and State Department have specifically called out Starlink and pressured other countries to overcome obstacles to the service. While there is no mention of the Trump campaign explicitly requesting favors for Starlink in exchange for lower tariffs, the documents suggest that Secretary of State Marco Rubio has been stepping up his instructions to urge government officials to obtain regulatory approval for Starlink as the administration moves forward with broader trade talks.
In India, government officials are rushing to approve Starlink, 'because they believe it could help shore up a trade deal with the administration,' The Washington Post noted. An anonymous source who provided information to The Washington Post said, 'While it's unlikely to be an explicit factor in trade negotiations with the U.S., India sees it as an important lubricant to smooth the deal.'
In response to a request for comment from The Washington Post, the State Department issued a statement saying, 'Starlink is an American product and has been a groundbreaking achievement in bringing internet connectivity to remote areas around the world. Every patriotic American should want to see American companies succeed on the world stage, especially over weaker Chinese competitors.'
White House spokesman Kush Desai also commented on the reports, saying, 'The Trump Administration's only consideration in trade negotiations with other countries is what's best for the American people, including the success of American businesses at home and abroad.' 'President Trump does not tolerate any conflicts of interest, and all government officials follow the ethical guidelines established by their respective administrations.'
The Washington Post has also reached out to SpaceX, the Indian government, the Lesotho government and spokespeople for several other countries for comment, but has not received a response.
This is not the first time that the US government has encouraged countries around the world to adopt Starlink. In early December 2024, a telegram signed by Antony Blinken, who served as Secretary of State in the Biden administration, was sent to embassies around the world. The telegram touted the benefits of 'Low Earth Orbit (LEO) Satellites' (Starlink), describing it as 'a robust alternative to traditional Internet service providers.' At this point, 50 diplomatic missions were using Starlink, but the US State Department is believed to have sent the telegram to expand Starlink to more missions around the world.
Additionally, under the Trump administration, at least two cables signed by Secretary of State Rubio have been sent to government officials around the world, again encouraging the promotion of U.S. satellite internet services (including Starlink). The cables encourage the introduction of satellite internet services in countries where the U.S. has presence, and one of the cables includes a 'Call to Action' signed by Secretary of State Rubio, stating that 'U.S. government support is essential to maintaining and expanding our global first-mover advantage.'
According to the cables, at least two countries have explicitly discussed or taken concrete steps toward deploying Musk's Starlink as a way to avoid Trump administration tariffs and negotiate better trade deals with the US.
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