Trump's potential Treasury secretary says he would work with Musk to improve the country's economy

Billionaire John Paulson, a close ally of Donald Trump, declared that, should he become Treasury secretary in a possible second administration of the former president, he would be willing to work with Elon Musk to make significant cuts in federal spending, and improve the country's economy.

During an interview with The Wall Street Journal, Paulson reacted to Musk's plan to reduce government spending by at least $2 trillion and revealed that one of his main goals would be to eliminate green energy subsidies, which he referred to as part of a "Green New Deal." In his remarks, he criticized investments in renewable energy, stating that they are "inefficient and uneconomical energy sources."

Paulson also laid out his plan to extend the tax cuts that are set to expire and were part of Trump's landmark 2017 tax law. In addition, he indicated that his mandate could include implementing "strategic tariffs." These measures, which could involve tariffs of 60% on Chinese imports, would serve as bargaining tools to encourage companies such as John Deere to keep their production in the United States. Although some economists warn about the risk of these actions increasing inflation and affecting economic growth, Paulson sees these strategies as crucial to strengthening the national economy and protecting U.S. interests.

Musk and his influence on the administration

Donald Trump expressed his desire for Musk to lead a new "government efficiency commission" aimed at auditing the federal government's finances and performance. Elon Musk has already stated that he could identify as much as $2 trillion in budget reductions, though he did not yet detail how this process would be carried out.

Future prospects

The potential collaboration between Paulson and Musk, as well as plans for tax cuts and spending in a future Trump administration, are generating debate over the country's economic direction. While some welcome the proposals to reduce federal spending, others warn of the risks associated with such policies, which could affect both the economy and sectors that rely on renewable energy investments.