Where Donald Trump and Elon Musk disagree on the economy

President Donald Trump’s choice of Elon Musk to head the proposed Department of Government Efficiency could become a rare source of resistance to economic policy in his second administration.

Trump’s self-proclaimed “first buddy” is already voicing his opinions on what he believes is best for the economy, even if they differ from the president-elect’s. The tech billionaire has frequently sided with Trump since his victory over Vice President Kamala Harris.

The two appear to have become fast friends after the CEO of SpaceX and Tesla endorsed Trump. Musk used his influence, fortune and connections to raise funds for the former president’s re-election campaign. Then, when Trump won, he said he planned to name Musk head of Government Efficiency, an acronym favorable to Musk’s crypto holdings.

The value of Musk’s companies has soared as the market predicts he will wield significant influence in Washington after Trump’s inauguration in January. Here’s how the economic views of both billionaires compare:

Raise or lower tariffs?

High spending was likely the main reason Trump won re-election after voters looked into their wallets and reported inflation as one of their top concerns in poll after poll.

On the campaign trail, he pledged to enforce a new trade program and high tariffs on imported goods to bring manufacturing jobs back to the U.S., even as some economists warned his policies would actually lead to higher prices for American consumers.

On Saturday, Musk took a public stance that could put him at a crossroads with Trump. In a social media post, Musk responded to the Argentine President’s decision to cut import taxes, calling it a “good step.”

Reduce costs and bureaucracy

Musk and Trump appear to be most in agreement on cutting federal spending. Trump named Musk to head the new “Department of Government Effectiveness” along with fellow tech entrepreneur Vivek Ramaswamy.

In a statement announcing his decision, Trump said the duo would “provide advice and guidance from the outside,” working with the White House and Office of Management and Budget “to implement large-scale structural reforms” and potentially cut trillions of dollars in spending.

In a Wall Street Journal article published Wednesday, the pair outlined plans to roll back the rules and large-scale layoffs of federal workers.

Who is the best economic advisor?

Musk may have influenced Trump’s choice of Commerce Secretary Howard Lutnick, who will oversee economic development and advise the president.

Another billionaire, Lutnick is a co-chair of the Trump transition team, CEO of financial services company Cantor Fitzgerald and a fan of cryptocurrencies. In a social media post Saturday, Musk said 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 lead the Treasury.

Musk said Bessent was the “usual choice” while Lutnick would “actually bring about change.” Three days later, Trump announced that he intended to nominate Lutnick to be secretary of commerce.

Crypto in general

Trump and Musk seem to agree on cryptocurrencies. The president-elect accepted donations for a cryptocurrency campaign and described himself as a pro-cryptocurrency candidate. His social media company Truth Social is in talks to buy cryptocurrency trading firm Bakkt.

Musk has long been associated with Dogecoin, the meme cryptocurrency whose value has soared since Trump’s election.

Earlier this year, Musk confirmed in a social media post that he owns “heaps” of Dogecoin. If he still holds a lot of the currency, he is poised to benefit monetaryly from the growth generated by Trump’s victory.

In the weeks that followed, Musk touted the coin, often called the “Doge,” and his new role in Trump’s proposed cost-cutting department, using the acronym “DOGE.” In social media posts, he shared AI-generated images and memes, including an image of the coin’s mascot dog, a Shiba Inu.

When should the US transition to sustainable energy?

Trump and Musk appear to disagree on the severity of the threat posed by climate change. Trump plans to “train the baby drill” to improve the economy and argues that if energy costs go down, other prices will follow.

“Right now there is no escape from (fossil fuels). I mean, someday you will be able to do it. But I heard that we have 100 to 500 years left,” Trump said in a conversation with Musk at August X Spaces.

Musk, whose Tesla business makes electric cars, backed down slightly. He said climate change is a real problem that the United States must address over the next 50 to 100 years.

In the same conversation, Trump said nuclear power was a “big problem.” Musk responded again by saying nuclear energy is underappreciated, misunderstood and confused with nuclear war. In response, Trump said nuclear power had a “bad brand” and should be renamed.

Contact Rachel Barber [email protected] and follow her at X @rachelbarber_.