Tesla CEO Elon Musk has been one of the most prominent critics of Peter Navarro. When asked to explain this idea, he called the Trump administration’s chief trade advisor “truly a moron” and “dangerously dumb.” The U.S. has already placed major tariffs on numerous countries, including a shocking 104% tariff on China. This new move has enflamed ire and fear of unpredictability among serious economists and business leaders alike.
It’s thanks to President Donald Trump for raising the economic temperature with his recent tariffs. These tariffs place huge duties of 11%-84% on imports from 86 countries. Despite the implementation of this aggressive trade strategy earning bipartisan criticism from Congress, businesses, farmers and trade groups, administration officials persistently defend this strategy. Even as concerns have been growing about these misguided policies, the administration continues to double down on their implementation.
Yet Musk’s comments are a sign of the increasing impatience from the business community. A 22% decline in Tesla’s stock in a matter of four trading sessions. This drop reveals just how damaging these trade policies are for companies that rely on international markets. And the real broader market is under pressure. So far today the Dow Jones Industrial Average is down 0.84%, the S&P 500 is down 1.57% and the Nasdaq Composite is down 2.15%.
In Asia, Japan’s Nikkei 225 index lost approximately 4%, and South Korea’s Kospi entered bear market territory after a more than 1.8% decline. And those worries are growing among analysts and investors. They’re hoping that several countries will sign agreements before everyone else, which would help lift shares of companies most directly connected to those countries.
Despite the turbulence in global markets, White House press secretary Karoline Leavitt attempted to downplay the situation, stating, “Boys will be boys, and we will let their public sparring continue.” This comment is a welcome sign that there’s some pushback in administration against the growing discontent with its trade policy.
The tariffs that have been placed on China are especially egregious, as they mark a massive escalation even beyond earlier increases. This round of reciprocal tariffs is more than just a starting rate of 10%. This rate is what was used for most other countries throughout the weekend. So in effect, the gross total tariffs on Chinese exports to the United States have now surged to an astounding 104%. That increase has industry worried for fear of Beijing’s retaliatory wrath.
In this move to publicly destroy his secretary of trade’s credibility, Musk is unfortunately not alone in sounding alarm bells about the administration’s trade plans. Economists and industry leaders argue that these policies could lead to long-term economic repercussions, including increased costs for consumers and strained international relations.