From tariffs to crypto, how Trump and Musk's economic views compare
Elon Musk, President-elect Donald Trump's pick to lead the proposed Department of Government Efficiency could be a rare source of pushback on economic policy in his second administration.
Trump's self-anointed "first buddy" is already making his opinions known on what he thinks is best for the economy, even if they diverge from the president-elect's. The tech billionaire has often been by Trump's side since his victory over Vice President Kamala Harris.
They appeared to become fast friends after the SpaceX and Tesla CEO endorsed Trump. Musk used his influence, fortune, and network to fundraise for the former president's reelection campaign. Then, when Trump won, he said he planned to make Musk the head of a government efficiency department with an acronym beneficial to Musk's crypto holdings.
Musk's companies have soared in value with the market predicting he will wield significant influence in Washington after Trump's January inauguration. Here is how both billionaires' economic views compare:
Raise or slash tariffs?
High costs were likely a major reason Trump won reelection after voters looked into their wallets and reported inflation was one of their top concerns in poll after poll.
On the campaign trail, he promised to enforce a new trade agenda and high tariffs on imported goods to bring manufacturing jobs back to the U.S. despite some economists warning his policies would actually raise prices for American consumers.
More: Elon Musk wants to cut government spending. Tesla and SpaceX benefit from it
Musk took a public stance Saturday that may put him at a crossroads with Trump. In a social media post, Musk responded to the president of Argentina's decision to slash import taxes, calling it a "good move."
Cutting costs and bureaucracy
Musk and Trump seem to agree most on slashing federal spending. Trump tapped Musk to lead a new "Department of Government Efficiency" alongside fellow tech entrepreneur Vivek Ramaswamy.
In the statement announcing his decision, Trump said the duo will "provide advice and guidance from outside of government," partnering with the White House and Office of Management and Budget "to drive large-scale structural reform" and cut potentially trillions in spending.
In a Wall Street Journal op-ed published Wednesday, the pair laid out plans for nullifying regulations and large-scale firings of federal workers.
Who is the best economic adviser?
Musk may have influenced Trump's pick for commerce secretary, Howard Lutnick, who will oversee economic development and advise the president.
Another billionaire, Lutnick is Trump's transition team co-chair, the CEO of financial services firm Cantor Fitzgerald, and a cryptocurrency fan. On Saturday in a social media post, Musk weighed in to say Lutnick was a better choice for Treasury secretary, a separate position, than Scott Bessent. Bessent is a hedge fund manager and still a contender to run the Treasury Department.
Musk said Bessent was the "business-as-usual choice," while Lutnick would "actually enact change." Three days later, Trump announced he intended to nominate Lutnick for commerce secretary.
Crypto in common
Trump and Musk seem to agree on crypto. The president-elect accepted crypto campaign donations and branded himself the pro-crypto candidate on the trail. His social media company Truth Social is in talks to buy crypto trading firm Bakkt.
Musk has long been associated with Dogecoin, a meme cryptocurrency that soared in value after Trump's election.
Musk affirmed earlier this year in a social media post that he owned "a bunch" of Dogecoin. If he still holds a lot of the currency, he is poised to benefit monetarily from the boost it received following Trump's victory.
In the weeks since, Musk has hyped up the coin often referred to as "doge" and his new role in Trump's proposed cost-cutting department with the acronym "DOGE." In social media posts, he shared AI-generated images and memes including the coin's Shiba Inu dog mascot.
What is 'Doge'?: Explaining the meme and cryptocurrency after Elon Musk's appointment to D.O.G.E.
When should the US move to sustainable energy?
Trump and Musk appear to disagree on the severity of the threat climate change poses. Trump plans to "drill baby drill" to improve the economy and has made the case that if energy costs drop, other prices would follow.
“You sort of can’t get away from (fossil fuels) at this moment. I mean, someday you might be able to. But I do hear we have anywhere from 100 to 500 years left," Trump said in an August X Spaces conversation with Musk.
Musk, whose Tesla business manufactures electric cars, pushed back slightly. He said climate change is a real problem the U.S. should address within the next 50 to 100 years.
In the same conversation, Trump said nuclear power was a "big problem." Musk again pushed back, saying nuclear energy is underrated, misunderstood, and confused with nuclear war. Trump responded by saying nuclear power has "bad branding" and that it should be renamed.
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
This article originally appeared on USA TODAY: Where Donald Trump and Elon Musk disagree on the economy
