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Musk suddenly opposes trade barriers and calls on the United States and Europe to establish a zero-tariff free trade zone, which has sharp differences with the Trump administration’s tariff policies.
Musk suddenly broke his silence on trade policies after Trump announced a comprehensive new tariff policy that caused the stock market to plummet for two days.Publicly criticized Navarro, the chief trade adviser of the Trump administration, and called for a more liberal trade environment.
Musk lost nearly $18 billion in Tesla stock alone.As Trump’s “close comrade” begins to openly question the White House trade strategy, investors need to be wary of the internal divisions and policy uncertainties that the US “economic reconstruction” plan may face.
Musk and Navarro’s open conflict
Musk responded sharply on his social media platform X on Friday morning to a user’s defense against Navarro.The user said Navarro, as a Harvard PhD in Economics, has a say in tariffs.
Musk made a clear distinction in the early hours of Saturday morning:“Having a Harvard PhD in economics is a bad thing, not a good thing,” he wrote, suggesting that such a background can make people “inflate more self-inflated than wisdom.”
One reader quoted Thomas Sowell:Every disaster in American history is inevitable.Musk immediately replied “Yes” and agreed.
When another user further defended Navarro, Musk responded more bluntly: “He did nothing.”
Amazing turn: Musk calls for zero tariffs in the United States and Europe
What’s more striking is that Musk then attended an Italian political event via video on Saturday, according to Bloomberg.There he publicly called for the elimination of trade barriers.
“In my opinion, Europe and the United States should ideally turn to a zero tariff state, effectively establishing a free trade zone between Europe and North America,” Musk said at the event.
This position is in stark contrast to the recently announced tariff policies by the Trump administration, showing a clear division of Musk on trade issues, once regarded as an ally of Trump.
White House Responds to Differences with Economic Team
The White House has not responded to Musk’s remarks.It is worth noting that in addition to Navarro, there are other senior officials in the Trump administration’s economic team with a PhD in economics, including Stephen Miran, chairman of the Economic Advisory Board.
recently,Navarro has appeared frequently on TV shows to defend Trump’s tariff plan and declared that it would bring about $600 billion in new revenue per year.Trump called the tariffs a “economic revolution” and said large businesses will eventually benefit from the upcoming tax cuts.
Musk’s relationship with the Trump administration may cool down
Trump said on ThursdayMusk may fade out of government work in the coming months.As head of DOGE (Government Efficiency Division), Musk recently said most of his work on cutting the $1 trillion deficit may be completed soon.
With Musk’s sudden open intervention in trade policy, the U.S. efforts to reshape the global economic order may face more uncertainty, and investors should pay close attention to the potential impact of such differences on the direction of markets and economic policies.
