According to BlockBeats, Elon Musk has openly criticized U.S. President Donald Trump's chief trade advisor, Peter Navarro, and called for a zero-tariff free trade zone between the U.S. and Europe. This stance marks a significant divergence from the Trump administration's recent tariff policies.
Following the announcement of new tariffs by Trump, which led to a sharp decline in the stock market, Musk broke his silence on trade policies. He criticized Navarro on social media, questioning the value of his Harvard economics background and suggesting it leads to arrogance rather than wisdom.
Musk's comments came after a user defended Navarro's expertise in tariffs. Musk responded bluntly, stating that Navarro has not achieved anything significant. This public disagreement highlights a growing rift within the U.S. economic strategy.
In a surprising move, Musk advocated for the elimination of trade barriers during a video appearance at an Italian political event. He suggested that the U.S. and Europe should ideally move towards a zero-tariff status, effectively creating a free trade zone between the two regions.
The White House has yet to respond to Musk's remarks. Notably, other senior officials in Trump's economic team, including Stephen Miran, also hold Harvard economics degrees. Navarro has been actively defending the tariff plan on television, claiming it will generate approximately $600 billion in new revenue annually. Trump has described these tariffs as an "economic revolution," asserting that large corporations will benefit from upcoming tax cuts.
Musk's relationship with the Trump administration may be cooling, as Trump indicated that Musk might step back from government work in the coming months. As the head of the Department of Government Efficiency (DOGE), Musk recently stated that much of his work on reducing the $1 trillion deficit is nearing completion.
Musk's sudden involvement in trade policy discussions introduces further uncertainty into the U.S.'s efforts to reshape the global economic order. Investors are advised to closely monitor the potential impact of these divisions on market trends and economic policy directions.