Musk wants free trade with Europe, opposes Trump

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Elon Musk distanced himself from the Trump administration’s trade policies, criticizing trade adviser Peter Navarro and advocating for tariff-free trade between the United States and Europe.

The Tesla CEO’s comments followed President Trump’s announcement of extensive tariffs against US trading partners, which triggered a market downturn that reduced Musk’s personal wealth by $11 billion.

“A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk wrote on X Saturday, responding to a user praising Navarro’s tariff explanations.

When another user defended Navarro’s tariff assessment, Musk responded bluntly, “He ain’t built sh—.”

Speaking via video link at a Florence conference hosted by Italy’s League Party, Musk, who serves as the de facto Department of Government Efficiency head until his special government employee status expires next month, expressed his vision for US-European trade relations.

Musk says US should move to “zero tariffs situation situation”

“I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zero tariff situation…creating a free trade zone

“That has certainly been my advice to the President.” pic.twitter.com/jeUv73mKi7

— Will Steakin (@wsteaks) April 5, 2025

“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.

Trump’s “Liberation Day” announcement included a 10% baseline tariff and customized rates for nations with trade surpluses with America, including a 20% tariff on the European Union.

During his conversation with League leader Matteo Salvini, Musk advocated for workforce mobility, stating, “If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” adding that he had conveyed this advice to the president.

League member and Italy’s Economy Minister Giancarlo Giorgetti cautioned against reciprocal tariffs, advocating for reduced tensions with the US.

The implementation of Trump’s tariffs has severely impacted financial markets, with the Dow Jones dropping 3,068 points, the S&P 500 falling 454 points, and the Nasdaq declining 1,458 points over five days, marking the century’s most extensive tariff package.

🔥VIETNAM JUST MADE A POWER MOVE — AND NOBODY’S READY FOR WHAT COMES NEXT🔥

1️⃣ Vietnam just offered to drop tariffs on U.S. goods to ZERO after a call with Trump.
They’re now sending top diplomats to Mar-a-Lago to finalize the deal.
This isn’t just about trade.
It’s about a… pic.twitter.com/rzQ9wbJNft

— Elon Musk ( Parody ) (@argosaki) April 5, 2025

Tesla’s European operations have faced challenges, with sales declining 42.6% in early 2024, according to European Automobile Manufacturers Association data, amid political resistance and Chinese competition.

In a previous conversation with Joe Rogan, Musk expressed concerns about sudden tariff changes: “I think you need to be careful with tariffs,” he said. “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 continued. “I think companies are more than happy to increase manufacturing in America, it’s just that you can’t do it instantly.”

As Musk’s political engagement has grown, he has increasingly aligned with traditional conservative economic principles, particularly those championed by Milton Friedman, who strongly opposed protectionist policies.