Musk suddenly opposes trade barriers, calling for a zero-tariff free trade area between the US and Europe, creating a sharp divergence from the Trump administration's tariff policy. After Trump announced a comprehensive new tariff policy that caused the stock market to plummet for two days, Musk suddenly broke his silence on trade policy, publicly criticizing Trump's chief trade advisor Navarro and calling for a more liberal trade environment.
On Tesla stock alone, Musk has lost nearly $18 billion. As this former "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 US "economic restructuring" plan.
Musk and Navarro's Public Conflict
On Saturday 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 explicitly expressed a different opinion late Saturday night: "Having a Harvard economics doctorate 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 person." Musk immediately replied "Yes", indicating agreement.
When another user further defended Navarro, Musk responded more bluntly: "He has never accomplished anything."
Surprising Turn: Musk Calls for Zero Tariffs
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"
This stance sharply contrasts with the tariff policy recently announced by the Trump administration, showing a clear divergence on trade issues from Musk, who was once considered a Trump ally.
White House Response and Economic Team Divergence
The White House has not yet responded to Musk's comments. It is worth noting that in addition to Navarro, there are other high-ranking officials with Harvard economics doctorates in the Trump administration'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 will bring in about $600 billion in new revenue annually. Trump called these tariff measures an "economic revolution" and stated that large corporations will ultimately benefit from the upcoming tax cuts.
Musk's Relationship with Trump Administration May Cool Down
Trump stated on Thursday that Musk might fade out of government work in the coming months. As head of Doge (Government Efficiency Department), Musk recently said that most of his work in reducing the $1 trillion deficit may soon be completed.
With Musk's sudden public intervention in trade policy, the US efforts to reshape the global economic order may face more uncertainty, and investors should closely monitor the potential impact of this divergence on market and economic policy directions.
