Musk's Starlink gains from Trump tariff as nations try to ease tensions

Even a modest share of India's broadband market could yield close to $1 billion in annual revenue for Starlink, internal cables accessed by The Washington Post find

Several countries have accelerated regulatory approvals for Elon Musk’s satellite internet venture, Starlink, in an effort to ease tensions over new US tariffs imposed by the Trump administration. An investigation by The Washington Post highlighted this pattern of how Starlink has gained footholds in countries such as Lesotho, India, Somalia, Vietnam, and Cambodia — often during or shortly after trade negotiations prompted by the imposition of new import duties.

 

While there is no documented evidence of the Trump administration directly demanding regulatory favours for Starlink in exchange for tariff relief, internal state department communications reviewed by The Washington Post suggest that diplomatic missions have repeatedly advocated for Musk’s company.

 

 

The cables also reveal a continuation of US diplomatic support for low Earth orbit (LEO) satellite internet providers that began under the Biden administration, albeit with a broader emphasis on multiple vendors. Starlink operates with over 7,000 LEO satellites and provides satellite internet services in more than 100 countries.

 

Under Trump, however, state department communications increasingly cite Starlink by name and urge embassies to advocate for its inclusion in foreign markets. 

 

India

India may have fast-tracked Starlink’s approvals with the understanding that doing so could smooth broader trade discussions.

 

As reported by Business Standard, the latest developments show the Indian government has approved Starlink, Elon Musk’s satellite internet service, to operate in India, more than two years after the company applied for a license. The Department of Telecommunications (DoT) issued a letter of intent, pending final approval. A similar license has already been granted to Airtel-backed Eutelsat OneWeb and Reliance Jio’s satellite division, Jio Space Ltd.

 

Starlink now awaits final authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). The Telecom Regulatory Authority of India (Trai) must also provide recommendations on satellite spectrum allocation, including pricing, which is expected soon.

 

The DoT has approved Starlink’s application for a GMPCS (Global Mobile Personal Communication by Satellite) license, which is required to offer satellite-based broadband services in India. Starlink’s application has been under review since November 2022.

 

According to The Washington Post, such regulatory gains could open up massive revenue streams for the satellite provider. Even a modest share of India’s broadband market could yield close to $1 billion in annual revenue, with comparable growth prospects in Latin America and Africa.

 

 

Lesotho

Starlink began engaging with Lesotho’s government in late 2023, looking to enhance internet connectivity in the country. Lesotho, in Southern Africa, granted Starlink a 10-year operating license on April 14, shortly after President Donald Trump announced a 50 per cent tariff on its goods, signalling a possible gesture of goodwill amid pending trade talks.

Similar sentiments have reportedly been echoed in African nations such as Mali and Cambodia, where embassy memos suggest local authorities have considered Starlink’s market entry as a means of improving relations with the US.

 

Somalia

Discussions between Starlink and Somalia’s National Communications Authority (NCA) commenced in March 2023, with Starlink expressing interest in providing services. Somalia finally granted Starlink a licence to operate on April 13, following the Trump tariff announcements. 

 

Vietnam

SpaceX expressed interest in entering Vietnam’s market in 2023, proposing a $1.5 billion investment. The pilot programme for this was approved in March 2025, around the time Trump's tariff threats began.

 

Starlink has been approved to operate without foreign ownership restrictions until 2030. The move was largely seen as an “olive branch” to the Trump administration.

 

Cambodia

On February 20, 2025, Rebecca Hunter, Marketing Director of SpaceX-Starlink, met with Prime Minister Hun Sen to discuss investment opportunities, but no formal announcement has taken place yet. The report by The Washington Post suggests that discussions between American Chamber of Commerce representatives and local officials included recommendations to approve Starlink’s license and offer tariff exemptions for US goods, including Ford vehicles.

 

Trump denies conflict of interest

Though the Trump administration has denied any conflict of interest while working with Elon Musk. The closeness between the tech billionaire and the US President has drawn scrutiny from the public and even caused tensions within the Trump administration. 

Musk is currently serving in the administration, overseeing the US DOGE agency, though he has stated that he will step down from the position soon.