Elon Musk appeared to diverge sharply from the Trump administration’s latest moves on trade policy, taking direct aim at White House trade adviser Peter Navarro and voicing support for a no-tariff arrangement between the United States and Europe.
Musk’s remarks came on the heels of President Trump’s broad announcement of new tariffs targeting nearly all of America’s trading allies, a move that triggered a major market downturn.
As a result of the stock selloff, Musk’s own fortune took a hit, dropping by an estimated $11 billion.
The Tesla and SpaceX CEO took to social media yesterday to issue blunt criticism of Navarro, who has been a key player in crafting Trump’s protectionist economic policies.
“A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk posted on X, replying to someone who had praised Navarro’s tariff arguments.
Speaking remotely to an event hosted by Italy’s right-leaning League Party in Florence, Musk, whose temporary government advisory role is slated to end next month, went on to express his preference for unfettered trade between Europe and the US.
“At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” Musk said.
Last Wednesday, President Trump declared a new round of trade restrictions, including a flat 10% tariff on most imports from countries with trade surpluses with the US. The European Union was singled out for a 20% general tariff.
“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” Musk told League chief Matteo Salvini during their exchange, adding that this “has certainly been my advice to the president.”
Musk has met with Salvini and other conservative leaders in Europe in the past and has voiced alignment with some of their views, including those promoted by the League Party.
In response to Trump’s tariff rollout, Italian Economy Minister Giancarlo Giorgetti, another League member, cautioned against retaliatory measures, urging a lowering of tensions with Washington.
The implementation of Trump’s tariffs — including the across-the-board 10% import duty already in place and additional levies set to take effect midweek — has sent shockwaves through global markets.
In just five trading days, the Dow Jones has fallen by 3,068 points, the S&P 500 has dropped 454 points, and the tech-heavy Nasdaq has plummeted 1,458 points, marking one of the most turbulent weeks for Wall Street in recent memory.
Tesla, which does a sizable portion of its business in Europe, has not been immune to the effects of rising political tensions and growing competition from Chinese automakers. According to the European Automobile Manufacturers Association, Tesla’s European sales slumped by 42.6% during the first two months of the year.
Musk has long cautioned against aggressive trade barriers, reiterating his stance in a podcast appearance last year.
“I think you need to be careful with tariffs,” Musk told Joe Rogan. “I deal a lot with supply chain issues like the global automotive supply chain for Tesla is incredibly complex. So when there are sudden changes in tariffs … it messes everything up.”
“You want to have tariffs be predictable so that tariffs can adjust their supply chain,” he added. “I think companies are more than happy to increase manufacturing in America, it’s just that you can’t do it instantly.”
In recent years, Musk’s political posture has leaned more openly toward free-market conservatism, aligning himself with the economic philosophies of Milton Friedman and other vocal critics of trade restrictions.
{Matzav.com}