Tim Draper Endorses Trump’s Tariffs and Praises Bitcoin

Investor and billionaire Tim Draper has endorsed the tariff policy of U.S. President Donald Trump and expressed confidence in the prospects of Bitcoin regardless of how the situation unfolds.

I am always for free trade, but I totally get it. President Trump is doing what needs to be done. The other countries have been taking advantage of the US’s decades of benevolence, and they should understand it is a two-way street. Weak leaders like socialist Xi will allow their…

— Tim Draper (@TimDraper) April 7, 2025

On April 2, Trump announced new tariffs for trading partners. A minimum of 10% is set for all countries, effective from April 5. For some partners, “reciprocal tariffs” approximately half of those imposed on American goods by these countries will be introduced, starting April 9.

The retaliatory tariffs for China will be 54%, for the EU — 20%, Vietnam — 46%, Taiwan — 32%, Japan — 24%, India — 26%, South Korea — 25%.

According to reports from the White House, about 50 countries have expressed their intention to enter negotiations. The Chinese authorities have imposed mirror tariffs on American goods. The EU has shown readiness to follow this path but has allowed time until May 10 to discuss grievances.

“President Trump is doing what is necessary. Other countries have been taking advantage of the US’s benevolence for decades, and they should understand it is a two-way street. Weak leaders like socialist Xi [Jinping] will allow their egos to stand in the way of their country’s progress, but most smart heads of state will take a practical stance and lower their own barriers for reciprocity,” Draper stated.

In his view, the United States will gain “more revenue” if partners do not accept their demands.

Draper also urged the Fed not to fear stagflation and to lower interest rates to support job creation in the US.

“All scenarios are good for Bitcoin buyers. It is resistant to inflation and geared towards innovation,” added the venture investor.

Elon Musk Opposes Trump’s ‘Liberation’ Tariffs

In contrast, Tesla and SpaceX CEO Elon Musk took an opposing stance. He personally tried to persuade Trump to abandon the new tariffs on Chinese goods, but to no avail, reports The Washington Post.

Over the weekend, the businessman published a series of posts on X criticizing the president’s economic advisor Peter Navarro, one of the main architects of the tariff strategy.

“Getting a PhD in economics from Harvard is a bad thing, not a good thing,” Musk wrote.

In an interview with Italy’s Deputy Prime Minister Matteo Salvini, the billionaire also said he would like to see a “free trade zone” between Europe and the US, as well as “zero reciprocal tariffs.”

Musk actively participated in Trump’s election campaign and was one of the main sponsors of the politician. 

He heads the Department of Government Efficiency (DOGE) created by the president. The term of this structure, which is not an official government agency, is limited to 130 days. It is expected that by May, the businessman will return to leading Tesla and SpaceX.

As the deadline for the introduction of Trump’s “liberation” tariffs approached, Bitcoin failed to hold the $75,000 level. After a rebound, the cryptocurrency was unable to sustain above $80,000.