A Heavyweight Battle — Trump Vs. Musk
Author: Greg Valliere
April 8, 2025
IT WAS INEVITABLE that two egos as massive as Donald Trump’s and Elon Musk’s eventually would clash, and sure enough — the two are voicing disagreements over trade tariffs.
MUSK HAS ALWAYS OPPOSED TARIFFS, and he is becoming more vocal toward the feisty White House trade adviser, Peter Navarro, who seems unwilling to take yes for an answer on any deal.
IS TRUMP’S REFUSAL TO NEGOTIATE SIMPLY A BARGAINING TACTIC? He makes adversaries happy to simply negotiate with him, which sets up still another heavyweight battle — the U.S. vs. China, with a deadline later today.
THE WHITE HOUSE STRIDENCY ON TRADE HAS UPSET business leaders and Republican politicians. If Trump slaps a 50% tariff on China later today, the stock market could plunge again.
THIS IS A PIVOTAL WEEK, as Trump loses support even among trade hawks. The whispering in Washington is that some Cabinet members — including Marco Rubio and Scott Bessent — are tiring of Trump’s negotiating tactics.
WE WROTE YESTERDAY that there are some glimmers of hope — more stimulus, backdoor negotiations, etc. — that appeal to Republicans. But they need to move quickly, because still another heavyweight fight is looming — U.S. talks with Iran this coming weekend.
THE TRUMP ADMINISTRATION is filled with Iran hawks, led by Rubio, who agree with Israel that crude nuclear weapons are unthinkable in the Persian Gulf.
BOTTOM LINE: AMID ALL OF THE POLICY CHAOS, one very important point persists — the U.S. economy still enjoys full employment and may get a dose of monetary and fiscal stimulus this summer. Musk will be largely gone by then.
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