Elon Musk and Trump's Global Tariff Order Clash, Targeting White House Tariff Strategist Navarro
Author: Jin Shi Data
Elon Musk stated last Saturday that he hopes to establish a "zero tariff" system between the United States and Europe, effectively creating a "free trade zone." Just days earlier, tariffs set by President Trump had thrown global markets into chaos.
Musk told Italian Deputy Prime Minister Matteo Salvini, "In my view, it would be best for both Europe and the U.S. to achieve zero tariffs and establish a free trade zone between Europe and North America."
His speech at a right-wing League party rally in Florence sharply contrasted with Trump's imposition of global tariffs. Since January of this year, Musk has been an important advisor to Trump, having previously been a major donor to Trump's campaign.
Trump has repeatedly accused the European Union of being unfair, claiming that the establishment of the bloc was intended to "bring down" the U.S. His Vice President JD Vance has accused Europeans of "fearing their own voters" and stated that European values are diverging from those of the U.S.
Last Wednesday, Trump announced a 20% tariff on goods entering the U.S. from the EU. The EU indicated that it preferred to reach a settlement through negotiations but was prepared to take retaliatory measures if necessary, including imposing its own tariffs, taxing services, and targeting U.S. tech companies.
Earlier last Saturday, Musk appeared to criticize White House senior official Peter Navarro, who has long advocated for a maximalist approach to tariffs.
Musk posted a series of replies on X, suggesting that Navarro's Harvard degree was "a bad thing," and noted that Navarro, a former economics professor who served during Trump's first term, had never built anything.
Musk, who frequently appears in the Oval Office, held a temporary position in the Trump administration and did not directly engage in trade policy. Trump stated last week that Musk is likely to leave the White House "in a few months."
Tesla produces many electric vehicles in California and Texas, and compared to other automakers, it is less affected by Trump's auto tariffs. However, Musk indicated that Tesla, which has significant operations in other countries, would also feel some pain.
In his speech in Florence, Musk added that he also hopes for a deeper partnership between the U.S. and Europe, providing greater mobility for those wishing to work in the U.S. or Europe.
He told attendees via video link, "This is certainly my advice to the president." However, he did not specify whether these suggestions pertained to tariffs, freedom of movement, or both.
In recent weeks, as signs indicated that the billionaire's relationship with Italian Prime Minister Giorgia Meloni was beginning to cool, Salvini launched a charm offensive towards Musk.
Bloomberg reported in March that Italy had expressed doubts about a planned €1.5 billion ($1.64 billion) deal to purchase SpaceX's Starlink system due to significant geopolitical changes.
Musk is expected to step down from his position leading the cost-cutting Department of Government Efficiency (DOGE) after his 130-day term as a temporary advisor to Trump ends, but he will likely maintain a close relationship with Trump.
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