Breaking with President Donald Trump’s decision to levy expansive tariffs on most foreign nations, Elon Musk said Europe and the U.S. “should move to a zero tariff situation, effectively creating a free trade zone between Europe and North America.”
Billionaire Mark Cuban wrote today on X: “Free Trade @elonmusk vs Full Tariff @realDonaldTrump and @howardlutnick is going to be fascinating to watch. They are the exact opposite sides of each other.”
Cuban breaks it down: “0 tariffs (free trade as Elon proposes) makes it cheaper to make overseas than it was under Biden. Which is great for consumers.
“Full Tariffs (Apr 2nd Tariffs) or Across the Board Tariffs (10 pct in place now) generate tax revenues paid for by exporters, importers and consumers (each product is different), and is inflationary when importers and consumers pay.
“my money is on @realDonaldTrump winning.”
Free Trade @elonmusk vs Full Tariff @realDonaldTrump and @howardlutnick is going to be fascinating to watch. They are the exact opposite sides of each other.
0 tariffs (free trade as Elon proposes ) makes it cheaper to make overseas than it was under Biden. Which is great for…
— Mark Cuban (@mcuban) April 6, 2025
Investor Ted Zhang replied and asked Cuban for his thoughts on billionaire Stanley Drunkenmiller‘s comments on tariffs.
As seen below, Drunkenmiller said: “In a perfect world, I would not be for a 10 percent tariff, but we’re not in a perfect world.”
Drunkenmiller added: “Our main choices are an income tax and a consumption tax like tariff. So when I say tariffs are the lesser of the two evils in terms of those two, because we have a fiscal problem, we need revenues. Tariffs will generate revenues. We also have a private savings problem in this country. They’re far too low. So I think a lot of economists who are out raising the alarm bells about tariffs would probably be fine with a consumption tax. To me tariffs are simply a consumption tax.”
Drunkenmiller added, “As long as we stay in the 10 percent range, and I think the so-called fear of Donald Trump, I think the risks are overblown relative to the rewards.”
Thoughts on Stanley Druckenmiller’s thoughts? https://t.co/Iknx4Ei2Bc
— Ted Zhang (@TedHZhang) April 6, 2025
Cuban replied: “He is right on tariffs directionally. 10 pct is better than what was proposed in April 2nd. He didn’t address whether other countries will go to 10pct, we don’t know what China will do and there is the question of remaining uncertainty if the numbers for the deficit and debt don’t improve. Particularly with the proposed tax cuts. Who knows where that gets us. Then what will happen ? The underlying issue is that so much of this is based on dogma and so little on data.”
Note: Cuban endorsed and campaigned for Vice President Kamala Harris in 2024; Druckenmiller endorsed Nikki Haley in the 2024 Republican Party presidential primaries. After Trump won the GOP nomination, Druckenmiller said he would not vote for Trump or Harris.