Elon Musk appeared to split from the Trump administration on tariffs overnight — as he lashed out at trade adviser Peter Navarro and said he hoped for a “zero tariff situation” between the US and Europe.
The world’s richest man made the comments after President Trump announced sweeping tariffs against virtually every US trading partner last week. The resulting stock market crash saw $11 billion wiped off his net worth.
The Tesla and SpaceX guru’s made very public swipes Saturday against Navarro, who is widely seen as one of the top architects of Trump’s tariff regime.
“A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk vented on X Saturday in response to a user touting the trade adviser’s explanations of tariffs.
Another user chimed in, saying that Navarro was “correct” in his assessment of tariffs, prompting Musk to retort, “He ain’t built sh—.”
The de facto Department of Government Efficiency boss, whose special government employee status is set to expire at the end of next month, later shared his hope for normal trade relations between the US and Europe during a video-link at a congress in Florance of Italy’s right-leaning co-ruling League Party.
“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.
As part of his so-called “Liberation Day” on Wednesday, Trump had announced a tariff of 10% and customized rates against US trading partners that have trade surpluses with America. Those rates included a 20% generic tariff against the European Union.
“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 leader Matteo Salvini, adding that this “has certainly been my advice to the president.”
Musk, who has previously met with right-wing European leaders, has expressed support for Salvini’s League.
Meanwhile, Italy’s Economy Minister Giancarlo Giorgetti, also from the League, warned against retaliatory tariffs against Trump, saying the government wanted “de-escalation” with the US.
Trump’s batch of tariffs, including the 10% baseline against virtually all US trading partners that went into effect Saturday and the customized rates that go into effect Wednesday, have roiled stock markets.
The Dow Jones has lost 3,068 points over the past five days, the S&P 500 has shed 454 points during that time period and the Nasdaq has lost 1,458 as markets adjust to the largest suite of tariffs in a century.
Musk’s Tesla company does significant business with Europe, though that has seen a steep plunge amid political backlash and fierce competition from China, with the company’s sales slipping 42.6% during the first two months of the year, according to data from the European Automobile Manufacturers Association.
Musk has previously warned about tariffs and protectionist measures in the past.
“I think you need to be careful with tariffs,” Musk told podcast titan Joe Rogan late last year. “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.”
Over recent years, as Musk has grown increasingly political, the tech baron has embraced traditional conservative market values such as those espoused by late economist Milton Friedman, who were ardent foes of protectionism.
With Post wires.
Read the full article here