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It appears that US President Donald Trump and his wealthy advisor Elon Musk are not aligned regarding America's extensive tariffs, which have reverberated around the world, raising concerns about a potential recession and a global trading conflict. Reports indicate that Musk made a direct request to the President to reverse the recently imposed duties on Chinese imports, but his efforts were unsuccessful. As reported by The Washington Post, the head of the Department of Government Efficiency (DOGE) attempted to intervene after Trump threatened to implement additional tariffs of 50 percent on Chinese imports, which would compound the 34 percent tariffs he announced the prior week. Musk even engaged in confidential discussions with the President in hopes of persuading him to lessen the tariffs, but, according to sources, those discussions have not yielded any positive outcomes.
In the meantime, Musk hinted at his disapproval of Trump’s tariff policy by sharing a video on X, featuring the late economist Milton Friedman advocating for the advantages of international trade cooperation. In the clip, Friedman illustrated the global connections involved in producing a simple wooden pencil, emphasizing the merits of worldwide collaboration. Earlier on Saturday, prior to the implementation of Trump's tariffs, Musk conveyed to Italy’s Deputy Prime Minister Matteo Salvini his desire for a situation with "zero tariffs" between the US and Europe, expressing, "Ultimately, I hope there will be a consensus that both Europe and the United States should strive for a zero-tariff framework. That has certainly been my counsel to the president."
As Tesla's CEO, Musk has consistently opposed tariffs, viewing them as harmful to companies, especially his own, which relies on both the US and China as crucial manufacturing and consumer markets. During Trump's initial term, Musk filed a lawsuit aimed at overturning the tariffs imposed on Tesla's imports from China into the US. He is reportedly facing mounting pressure to address indications of declining demand for Tesla in the global marketplace, a situation partly influenced by his involvement in political matters. Following a tumultuous day on Wall Street on Monday, Tesla’s stock finished at $233.29, reflecting a decline of over 2.5 percent, with the stock having decreased by more than 38 percent over the year. Additionally, prior to the enactment of Trump’s new tariffs over the weekend, the head of DOGE criticized Peter Navarro, the White House advisor who crafted Trump’s aggressive tariff strategy, mocking his educational background.
Musk stated, "Having a PhD in Economics from Harvard is a negative, not a positive," while sharing a video featuring Navarro. To date, Navarro has not responded to the situation. Nevertheless, White House spokesperson Karoline Leavitt defended Navarro, asserting, "The President has assembled an impressive group of highly skilled and experienced people who contribute a variety of perspectives, aware that President Trump is the final authority." According to The Washington Post, Musk's divergence from Trump regarding a significant administration initiative represents the most notable disagreement between the president and one of his key advisors.
As the wealthiest individual globally, Musk has invested close to $290 million in support of Trump and his associates during last year's presidential election cycle. In exchange for this backing, he was appointed to oversee cost-reduction strategies within the US DOGE Service. This disagreement arises just weeks before Musk is anticipated to leave his role within the administration. However, this is not the first instance of him clashing with Trump’s supporters and colleagues. Previously, he expressed his opposition to other members of Trump's coalition on matters such as H1-B visas for skilled workers and the approach to government spending regarding DOGE.
