As this "close ally" of Trump begins to publicly question the White House's trade strategy, investors should be wary of potential internal divisions and policy uncertainties in the U.S. "economic restructuring" plan.
Musk suddenly opposes trade barriers, calling for a zero-tariff free trade zone between the U.S. and EU, creating a sharp divergence with the Trump administration's tariff policy.
After Trump announced a comprehensive new tariff policy that caused a two-day stock market plunge, Musk suddenly broke his silence on trade policy, publicly criticizing Trump's chief trade advisor Navarro and calling for a more open trading environment.
Tesla's stock alone has cost Musk nearly $18 billion. As this "close ally" of Trump begins to publicly question the White House's trade strategy, investors should be wary of potential internal divisions and policy uncertainties in the U.S. "economic restructuring" plan.
Musk's Public Conflict with Navarro
On Friday morning, Musk made a sharp response on his social media platform X to a user defending Navarro. The user claimed that Navarro, with a Harvard economics doctorate, has the right to speak on tariff issues.
Musk clearly expressed a different opinion early Saturday: "Having a Harvard economics PhD is a bad thing, not a good thing," he wrote, suggesting such a background leads to more "self-inflation than wisdom".
A reader quoted Thomas Sowell's famous saying: Every disaster in American history has rarely been without a Harvard graduate. Musk immediately replied "Yes", indicating agreement.
When another user further defended Navarro, Musk responded more directly: "He has never accomplished anything."
Surprising Turn: Musk Calls for Zero Tariffs between US and EU
More notably, according to Bloomberg, Musk subsequently attended an Italian political event via video on Saturday, where he publicly called for the elimination of trade barriers.
"In my view, Europe and the United States should ideally move towards a zero-tariff state, effectively establishing a free trade zone between Europe and North America," Musk stated at the event.
This stance stands in stark contrast to the Trump administration's recently announced tariff policies, showing a clear divergence on trade issues for Musk, who was once considered a Trump ally.
White House Response and Economic Team Disagreements
The White House has not yet responded to Musk's comments. Notably, besides Navarro, there are other senior officials with Harvard economics doctorates in Trump's economic team, including Stephen Miran, chairman of the Council of Economic Advisers.
Recently, Navarro has frequently appeared on TV shows defending Trump's tariff plan, claiming it would bring in approximately $600 billion in new revenue annually. Trump described these tariff measures as an "economic revolution" and stated that large enterprises would ultimately benefit from the upcoming tax cuts.
Musk's Relationship with Trump Administration May Cool
Trump stated on Thursday that Musk might fade from government work in the coming months. As head of DOGE (Department of Government Efficiency), Musk recently indicated that most of his work in reducing the $1 trillion deficit might soon be completed.
With Musk's sudden public intervention in trade policy, the U.S. efforts to reshape the global economic order may face more uncertainty, and investors should closely monitor the potential impacts of these divergences on market and economic policy directions.
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