Original Article Title: "Musk Publicly Criticizes 'Tariff Man' Navarro, Calls for Free Trade, Even EU-US 'Zero Tariff'"

Original Article Author: Pan Lingfei, Wall Street News

As this so-called "Tariff Man," a close ally of Trump, publicly questions the White House's trade strategy, investors need to be alert to the internal divisions and policy uncertainties that the US "economic restructuring" plan may face.

Musk suddenly opposes trade barriers, calling for a zero-tariff free trade zone between the US and Europe, sharply differing from the Trump administration's tariff policy.

After Trump announced a new comprehensive tariff policy that caused a two-day stock market plunge, Musk suddenly broke his silence on trade policy, publicly criticizing Trump's chief trade adviser Navarro and calling for a more open trade environment.

Just in Tesla stock alone, Musk lost nearly $18 billion. As this so-called "close ally of Trump" begins to publicly question the White House's trade strategy, investors need to be alert to the internal divisions and policy uncertainties that the US "economic restructuring" plan may face.

Musk and Navarro's Public Conflict

On Friday morning, Musk responded sharply on his social media platform X to a user's defense of Navarro. The user claimed that Navarro, as a Harvard economics PhD holder, had a say in tariff issues.

In the early hours of Saturday, Musk clearly expressed a different opinion: "Having an economics PhD from Harvard is a bad idea, not a good one," he wrote, implying that such a background would make one "more self-important than wise."

A reader quoted Thomas Sowell's saying: In every disaster in American history, there is always someone from Harvard. Musk immediately replied "yes," indicating his agreement.

When another user further defended Navarro, Musk responded more bluntly, saying, "He has never accomplished anything."

Remarkable Turnaround: Musk Calls for US-EU Zero Tariff

More notably, according to Bloomberg, Musk then attended an Italian political event via video on Saturday, where he publicly called for the elimination of trade barriers.

"In my opinion, Europe and the US should ideally move toward a zero-tariff state, effectively establishing a free trade area between Europe and North America," Musk said at the event.

This stance is in stark contrast to the tariff policy recently announced by the Trump administration, demonstrating a clear divergence on trade issues from Musk, who was once seen as an ally of Trump.

White House Response and Economic Team Discord

The White House has not yet responded to Musk's comments. Notably, apart from Navarro, there are other senior officials in the Trump administration's economic team who hold Harvard Economics Ph.D.s, including Economic Advisory Committee Chairman Stephen Miran.

Recently, Navarro has appeared frequently on television programs to defend Trump's tariff plan, claiming it will bring in approximately $600 billion in new revenue annually. Trump has called these tariff measures an "economic revolution" and stated that large corporations will ultimately benefit from the upcoming tax cut policy.

Musk's Relationship with the Trump Administration May Cool Down

On Thursday, Trump suggested that Musk may step back from government work in the coming months. As the head of DOGE (Department of Government Efficiency), Musk recently stated that much of his work on reducing a $1 trillion deficit may soon be completed.

With Musk's sudden public intervention on trade policy, the U.S.'s efforts to reshape the global economic order may face more uncertainty. Investors should closely monitor the potential impact of this divergence on market and economic policy direction.

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