U.S. Ties Trade Pressure to Starlink Approvals in Push Against China
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Hi, everybody. Welcome back to the show. Now, on this episode, we unpack how the U.S. government is pressuring foreign nations to approve Elon Musk's Starlink in exchange for favorable trade terms. Why developing countries are using Starlink licenses to deflect tariffs and how this strategy complicates U.S. diplomacy amid growing competition with China in global intercontinentalism.

internet infrastructure. Also, we're going to explain why the State Department is naming Starlink in official cables and what role Trump allies are playing in these efforts and how regulatory pressure blends with geopolitical goals. And we're also going to examine how these moves are being interpreted by foreign leaders, especially in Africa and Asia, and what this means for Starlink's expansion plans. Welcome to the Elon Musk podcast. I'm your host, Will Walden.

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Now on March 28th, 2024 officials in Lesotho awarded Elon Musk Sterling a 10 year satellite internet license. Now just two weeks earlier, the Trump administration had imposed a 50% tariff on their exports to the US. The decision came during early stage negotiations over a new trade agreement between the two countries.

The Lesotho Communications Authority hosted Starlink executives in a meeting shortly after the tariff announcement. Internal memos from the U.S. State Department revealed that Lesotho hoped the license would demonstrate goodwill during trade talks. The cable stated that the move showed intent to welcome U.S. businesses, specifically Starlink. That pattern has repeated in at least seven countries since Trump's return to office.

Starlink struck distribution deals in India and gained traction in Somalia, Pakistan, Bangladesh, Vietnam, and the Democratic Republic of Congo, and potentially others. These deals often coincided with new tariffs or economic pressure from the U.S., according to internal diplomatic cables reviewed by the Washington Post.

U.S. embassies and State Department officials have actively lobbied for Starlink approvals in foreign nations. Secretary of State Marco Rubio signed at least two official communications instructing U.S. diplomats to promote satellite firms, naming Starlink explicitly.

In a March 28th action memo, Rubio said global regulatory support was essential to preserving Starlink's first mover advantage. In one such case, India's fast-tracked Starlink regulatory process while also renegotiating trade terms with the U.S. According to international sources familiar with India's decision-making, Indian leaders viewed Starlink's entry as a lubricant for the talks.

Though not formally part of trade negotiations, Starlink's access was strategically positioned as a gesture toward Washington. Rubio's diplomatic memos framed Chinese and Russian satellite services as threats to U.S. national security. They argued that American firms needed help entering markets before competitors gained footholds.

Officials cited by name in nearly every single memo, even as they promoted a general preference for U.S. satellite services. The Trump White House denied any conflict of interest related to Musk's involvement. Musk donated $277 million to Trump-aligned candidates and currently leads the U.S. Doge service, though he announced plans to step down. The White House said the only priority in trade deals was protecting American economic interests.

However, the optics around Musk's political influence have created some tension. Foreign officials are finding it difficult to separate U.S. official interests from U.S. Musk's business ambitions, and analysts point to the timing and coordination between two trade pressure and Starlink license approvals as strong signals of implicit pressure.

Now, in Cambodia, the connection between tariffs and Starlink approvals was even clearer. On April 2nd, Trump slapped a 49% tariff on Cambodian goods. The next day, U.S. business representatives in Cambodia urged local officials to offer Starlink access and duty-free entry for Ford vehicles to restore trade ties. Now, even before the tariff, though,

The embassy documented Cambodia's consideration of Starlink as a trade balancing tool. Cables dated March 28th showed local officials were exploring Starlink access to signal alignment with the U.S. government, and the embassy noted the Cambodian government wanted to promote Boeing and Starlink to avoid economic penalties.

Meanwhile, in Mali, embassy staff reported the local authorities were building a regulatory framework to bring Starlink into the country. Embassy personnel said they had already identified a company preparing to launch a local Starlink franchise. The memo noted that the embassy's internal deal team was actively assisting the process.

And in Turkey, embassy staff delivered talking points directly from Rubio's memo to senior space agency officials. Turkish regulators had already expressed interest in services like Starlink and Amazon's Project Kuiper, and the cable recorded the meeting and described it as part of an ongoing U.S. effort to push satellite internet diplomacy.

There's other similar campaigns underway and other countries have pledged to continue to follow up on Starlink. Musk's satellite business has enormous financial stakes in this international expansion.

According to Quilty Space, a firm specializing in satellite marketing research, internet company Starlink could generate $1 billion annually for just 1% of India's broadband market. Comparable growth potential exists in parts of Latin America and sub-Saharan Africa. Now, the State Department of the United States has a longstanding interest in satellite-based internet access.

Under President Biden, Secretary Antony Blinken signed a cable supporting low-Earth orbit or LEO satellite vendors as alternatives to traditional ISPs. The cable, issued in December, said 50 U.S. embassies already used LEO satellites.

and more would follow. Blinken's cable did not favor Starlink exclusively. It said the department would expand access to other vendors as they became available. However, since Trump's return, diplomatic cables increasingly reference Starlink by name and urge officials to advocate for its market entry. WQA, more of the Center for Global Departments, said African nations are approving Starlink licenses more frequently under Trump

than during the previous administration. He explained that many African officials perceive Musk's interest as deeply intertwined with U.S. diplomatic efforts. Now, that perception, he said, affects how countries make licensing decisions.

Now, for everyday people in these countries, though, Starlink offers faster internet in places where traditional broadband just doesn't exist. Governments facing pressure to improve connectivity see Starlink as a shortcut to digital access. But these choices are being made under trade stress, which raises questions about severity and transparency. And for American citizen, the story reveals how foreign policy supports certain private companies that hold political leverage.

Taxpayer-funded diplomacy being used to shape deals that enrich a few individuals while advancing geopolitical goals. Whether or not Starlink performs well in these countries, the business is winning access through methods tied to trade negotiations, not just trade.

open markets. Now, the strategy also reaffirms how China's tech expansion is reshaping U.S. foreign policy. The United States sees the telecom race with China as a zero-sum contest. And by tying Starlink to trade deals, the U.S. government is actively prioritizing internet infrastructure as a strategic resource. While no formal deals have yet been signed since the April 2nd tariff announcements, the groundwork for TradeLink concessions is being laid through technology access.

Each country they grant Starlink a license sends a message to Washington that it is willing to play ball. The balance of power in these negotiations is tilting toward whoever controls connectivity.

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