Musk Seemingly Splits With Trump, Advocates Against New Policy

Elon Musk splits with Trump over tariff policy, advocating for zero tariffs between the US and Europe while criticizing key Trump advisors as the markets react negatively to the president’s “Liberation Day” announcement.

Key Insights

Musk openly disagrees with Trump’s tariff strategy, advocating instead for a zero-tariff system between Europe and North America to create a free trade zone.
Trump recently announced significant tariffs on imported goods, including a 20% tariff on European goods and 34% tariff on Chinese imports, calling it “Liberation Day.”
Musk has criticized Navarro’s economic credentials and ridiculed Commerce Secretary Howard Lutnick for his tariff arguments.
Peter Navarro, Trump’s trade advisor, dismissed Musk’s criticism, suggesting the Tesla CEO is merely protecting his business interests.
The stock market reacted negatively to Trump’s tariff announcements with significant drops in major indices.

Musk Advocates Free Trade Against Trump’s Tariff Push

Elon Musk has publicly broken with President Donald Trump on trade policy, advocating for a complete elimination of tariffs between the United States and Europe. Despite his previous support for Trump, Musk’s criticism comes after Trump announced sweeping new tariffs, including a 20% tariff on European goods and a 34% tariff on Chinese imports. The Tesla CEO’s position aligns with traditional free-market conservative principles rather than Trump’s protectionist stance. Musk made his position clear through a series of posts on X, the social media platform he owns.

While Trump celebrated his tariff announcement as “liberation day,” global markets responded with immediate drops. The protectionist measures triggered concerns about economic stability and potential retaliatory actions from trade partners, particularly as the new administration pursues an aggressive “America First” trade agenda.

Trump Advisors and Musk Exchange Barbs

The public disagreement escalated when Peter Navarro, Trump’s trade advisor, responded to Musk’s criticism. Navarro dismissed Musk’s concerns, suggesting they were motivated by self-interest rather than economic principle. “Elon when he’s in his DOGE lane is great, but we understand what’s going on here. Elon sells cars. He’s simply protecting his own interests,” Navarro said, acknowledging that Tesla’s global supply chain could be affected by the new tariffs since the company sources parts from countries like China, Mexico, Japan, and Taiwan.

Musk didn’t hold back in his criticism of Trump’s advisors, particularly targeting Navarro’s academic credentials. “A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk wrote, suggesting that academic economists often let their egos override practical economic reasoning. He also mocked Commerce Secretary Howard Lutnick for justifying tariffs on remote locations like the Heard and McDonald Islands, implying the administration’s approach lacked coherent economic reasoning.

Friedman’s Influence on Musk’s Free Trade Stance

In making his case against tariffs, Musk shared content from renowned economist Milton Friedman, a conservative icon whose free-market philosophy has influenced generations of economic thinkers. Friedman’s arguments against tariffs focus on their negative effects on both consumption and production. By artificially raising prices, tariffs protect domestic producers from competition but harm consumers and downstream industries that rely on imported goods. This classical conservative economic perspective contrasts with Trump’s more nationalist approach to trade policy.

Despite market turbulence and criticism from business leaders like Musk, Trump remains steadfast in his belief that tariffs will benefit American industry and workers. “Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!” Trump posted on social media as markets continued to react to his trade policies. The disagreement highlights a fundamental tension within conservative economic thought between free market principles and nationalist economic policies aimed at protecting domestic industries.