Starlink gains ground amid Trump’s tariffs as nations court trade favour

Starlink gains ground amid Trump’s tariffs as nations court trade favour

As the Trump administration wields tariffs as a pressure tool on global trade partners, Elon Musk’s Starlink is emerging as an unexpected beneficiary. From Lesotho to India, countries hoping to secure better trade terms with the US are fast-tracking regulatory approvals for the satellite internet firm owned by SpaceX, a company closely tied to Trump through political and policy channels, the Washington Post reported.

Less than two weeks after Trump slapped a 50 percent tariff on goods from Lesotho, the small African country granted Starlink a 10-year license to operate its first-ever satellite internet service. An internal US State Department cable reviewed by The Washington Post noted that Lesotho hoped the move would "demonstrate goodwill" as it negotiates a trade deal with Washington.\This pattern is repeating in several developing countries, including Somalia, Pakistan, Bangladesh and Vietnam — and most notably, in India.

India’s fast-tracking of Starlink

In March, Indian officials approved Starlink's long-pending license applications, after months of delays that had frustrated the company. Two Indian distribution deals were quietly signed that same month. According to individuals familiar with Indian trade strategy, the government moved quickly on the approvals with the understanding that facilitating access for Starlink could ease trade negotiations with the Trump administration.

“It’s not an explicit part of the trade negotiations,” said one source briefed on the discussions, “but it’s seen as a helpful gesture that could lubricate progress.”
This shift comes as India attempts to shield its exports from Trump's sweeping tariff regime, which has already hit several Asian economies hard. With the U.S.-China rivalry spilling into telecom and satellite internet, India’s decision to welcome an American player like Starlink is as much about strategic alignment as market economics.
Capturing even 1 percent of India’s broadband market could bring in nearly $1 billion annually for Starlink, according to estimates from Quilty Space, a space-sector intelligence firm.

Starlink as a diplomatic tool
Across continents, US embassies have been advocating for Starlink’s entry, often under directives signed by Secretary of State Marco Rubio. These internal cables refer to the satellite firm by name and instruct diplomatic staff to “maintain and extend [Starlink’s] global ‘first-mover’ advantage.”

A cable from Cambodia shows how the American Chamber of Commerce there urged local officials to “expeditiously approve Starlink’s market entry” as a way to rebalance trade and win US favour after Trump imposed a 49 percent tariff on Cambodian goods.
Another cable from Mali noted that the country was developing a national framework to register Starlink users. Embassy staff there were already working with a Malian company “preparing to set up a Starlink franchise.”

Musk’s political influence and global expansion

Elon Musk’s proximity to Trump — having donated $277 million to Republicans during the last election and serving in the administration in a tech advisory role — adds further complexity. Although no direct quid pro quo has been proven, many foreign governments view easing Starlink’s entry as a way to avoid being penalized by tariffs or to secure better treatment in bilateral talks.

The State Department has defended its support for Starlink, calling it “a game-changing American-made product” and part of Washington’s broader effort to push back against Chinese telecom dominance.

But some analysts worry the blending of trade negotiations and corporate access is muddying traditional diplomacy. “It may not be a formal requirement,” said Gyude Moore of the Center for Global Development, “but the pressure is real. Governments know what signals matter to Washington right now — and Musk’s success is one of them.”

As Trump’s tariff war continues to reshape global trade dynamics, Starlink’s rapid expansion is becoming a case study in how corporate and geopolitical interests are now tightly interwoven — especially in the developing world.