Divisions Emerge Among Trump Allies Over Tariff Policies

In a significant development echoing through the corridors of power in Washington, prominent figures within President Donald Trumpâs inner circle, including influential business leaders, are beginning to express their dissent regarding the presidentâs aggressive tariff strategies. This shift in sentiment comes as Trumpâs approachâperceived by some as reckless and by others as boldâthreatens to disrupt the delicate balance of global trade and commerce that the administration aims to redefine.
One of the most notable instances of this growing discontent has come from tech mogul Elon Musk, who has publicly advocated for the establishment of a free trade zone between Europe and the United States. Muskâs stance has placed him at odds with Peter Navarro, Trumpâs chief trade advisor and a well-known advocate of protectionist policies. The tension escalated into a heated exchange, where Musk criticized Navarroâs credentials, stating that the Harvard-trained economist's expertise in tariff strategies is a âbad thing, not a good thing.â In a particularly biting comment, Musk remarked, âhe ainât built shit,â a clear jab at Navarroâs lack of practical experience in manufacturing.
Navarro was quick to retaliate during a televised interview, retorting that Musk âis not a car manufacturer; heâs a car assembler.â This public spat highlights the fractures within the MAGA coalition, especially as key financial figures close to Trump are now sounding alarms over the ramifications of the current trade policies. The stock market has experienced a tumultuous ride, with a staggering decline that has wiped out over $5 trillion in value over just two days of trading.
In this context, billionaire hedge fund manager Bill Ackman, who has maintained a close relationship with Trump, has urged the president to take a step back. He called for a â90-day time outâ aimed at negotiating and resolving what he terms âunfair asymmetric tariff deals.â Ackman emphasized the importance of maintaining business confidence, warning that âbusiness is a confidence game,â and cautioned that Trump's current trajectory could erode the trust of global business leaders.
âIf, on the other hand, on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocketbooks, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate,â Ackman asserted, highlighting the potential long-term consequences of continued tariff hostilities.
Despite this advice, President Trump has doubled down on his tariff policies, escalating the trade war with a mix of bravado and harsh rhetoric. He has directed his ire toward the European Union and Japan, blaming them for not purchasing American products such as meat and cars. Trump attributes these issues to high tariffs imposed by other nations, although trade analysts suggest that the problem may lie in the fact that many American products do not adhere to the stringent standards required by foreign markets.
In response to the ongoing tensions, European Commission President Ursula von der Leyen stated on Monday that the EU is open to negotiating a âzero for zeroâ tariff deal with the United States. However, many Europeans remain skeptical, often dismissing American automobiles as unsuitable for their market, while expressing concerns about the practices involved in the production of U.S. meat and poultry.
Adding to the concerns around the tariffs, Jamie Dimon, the CEO of JP Morgan, has warned that these measures are likely to exacerbate inflation and increase the risk of a recession. His comments reflect a growing anxiety among corporate leaders regarding the economic impact of the current tariff strategies.