US Reportedly Pressures Tariff-Hit Nations To Approve Elon Musk's Starlink: '...An Important Lubricant That Facilitates A Deal'

The United States has reportedly been pushing certain countries facing Trump-imposed tariffs to approve Elon Musk's Starlink service.

What Happened: State Department cables reveal that U.S. embassies and the department actively urged countries facing tariffs to remove barriers for satellite companies, frequently citing Starlink specifically, reported The Washington Post. Although there’s no direct evidence that the Trump administration linked tariff relief to Starlink approvals, the  Secretary of State, Marco Rubio, has actively advocated for regulatory clearance of Musk's satellite company.

The White House and SpaceX did not immediately respond to Benzinga‘s request for comment.

For instance, Starlink has been awarded the first-ever satellite internet service license in Lesotho, an African nation, following Trump’s call for trade deal negotiations, stated the publication.  

Starlink has also signed distribution agreements in India and obtained partial approvals in several other countries, including Somalia, the Democratic Republic of Congo, Bangladesh, Pakistan and Vietnam. In India, officials have fast-tracked Starlink approvals in hopes that it will support progress on trade agreements with the U.S.

"It's not likely to be an explicit element of the trade negotiations with the U.S., but the Indian side sees this as an important lubricant that facilitates a deal," a source told The Washington Post.

The State Department commented on Starlink’s success, stating it has been “game-changing in helping remote areas around the world gain internet connectivity.”

Interestingly, the cables revealed that even the Biden administration urged embassies to adopt Starlink and other satellite internet services.

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Why It Matters: Starlink’s expansion into new markets has been marked by strategic moves and regulatory challenges. In March, Starlink gained approval for a trial launch of its satellite internet service in Vietnam, a move perceived as a strategic measure by Vietnam to avoid potential U.S. tariffs.

Some experts say this move aligns with the U.S. strategy, as Starlink strengthens its position and stays ahead in the global telecom race against China. Evan Swarztrauber, a senior fellow at the Foundation for American Innovation, stated, “..The U.S. has a lead in space, and we should double down on getting other countries to grant regulatory approvals for our companies. Otherwise, it will be Chinese companies that benefit from market access."

Meanwhile, Starlink's global growth could yield billions, with even a 1% share of India's broadband market alone potentially bringing in $1 billion annually, according to Kimberly Siversen Burke from Quilty Space.

• READ MORE: Elon Musk's Ex-Wives Missed Out on His Billion-Dollar Wealth — Here's Why – Benzinga

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