Less than two weeks after President Donald Trump announced 50 percent tariffs on goods from the small African nation of Lesotho, local communications regulators granted Starlink, Elon Musk’s satellite company, its first official license to operate there. The agreement in question will run for 10 years.
The decision was mentioned in an internal State Department memo obtained by the Washington Post, which states, “As the government of Lesotho negotiates a trade deal with the United States, it hopes that licensing Starlink demonstrates goodwill and intent to welcome U.S. businesses.”
Documents obtained by the Post do not show that Trump’s team explicitly called in favors for Starlink in exchange for lower tariffs. However, Secretary of State Marco Rubio has increasingly asked foreign officials to solicit regulatory approvals for Musk’s satellite company at a time when the White House is calling for wide-ranging trade talks. Musk was Trump’s key ally during the election campaign, during which he supported the MAGA leader and other Republicans by shelling out the astronomical sum of $277 million.
Lesotho is not the only country that has decided to suddenly favor Musk’s company in an attempt to “soften” U.S. duties. In fact, the company has also made similar agreements in India, Somalia, Congo, Bangladesh, Pakistan and Vietnam. In India, government officials have expedited Starlink approvals with the understanding that this could help them solidify trade agreements with Washington.
When asked for comment on the matter, the State Department said “Starlink is an American-made product that has been game-changing in helping remote areas around the world gain internet connectivity. Any patriotic American should want to see an American company’s success on the global stage, especially over compromised Chinese competitors.”
According to other experts, however, the U.S. is attempting to convince other nations to adopt Starlink to secure an advantage in its challenge to China. Indeed, the U.S. is engaged in a global telecommunications competition with Beijing, and Starlink represents the leading domestic and international player in satellite connectivity.
“We want American satellite companies to do well abroad, especially as our main competition is China”, said Evan Swarztrauber, a senior fellow at the Foundation for American Innovation, “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.”
Starlink’s international expansion could generate multibillion-dollar revenue streams. Conquering even 1 percent of the Indian consumer broadband market could generate nearly $1 billion annually, with similar growth potential in Latin America and Africa.
