Billionaire entrepreneur Elon Musk has ignited a fiery public feud with Peter Navarro, a key trade adviser to President Donald Trump, over the administration's aggressive new tariff policies and Tesla’s role in American manufacturing.
The clash, playing out on Musk’s social media platform X, comes as the Trump administration's sweeping new tariffs shake global markets and draw criticism from business leaders and economists alike. Musk, a top donor to Trump and informal adviser on technology and energy, has used his platform to vehemently push back on Navarro’s characterization of Tesla’s supply chain and broader trade philosophy.
“Navarro is truly a moron. What he says here is demonstrably false,” Musk wrote Tuesday morning in response to Navarro’s remarks on CNBC, where the former trade czar called Tesla a “car assembler” reliant on foreign components. “By any definition whatsoever, Tesla is the most vertically integrated auto manufacturer in America with the highest percentage of US content,” Musk added.
Musk also took a personal jab at Navarro’s credibility by referencing “Ron Vara,” a fictional expert Navarro invented and quoted in his 2011 book Death by China to bolster anti-China arguments. “Navarro should ask the fake expert he invented,” Musk wrote.
The tone quickly turned harsher. In another post replying to a user on X, Musk referred to Navarro as “Peter Retarrdo,” drawing backlash online for the crude insult, but also energizing Musk’s base of followers who have grown increasingly vocal against tariffs.
A Battle of Trade Philosophies
The conflict reveals a broader ideological divide within Trump’s economic orbit. While Musk advocates for open trade and innovation-driven manufacturing, Navarro has long championed economic nationalism and domestic production.
Speaking Monday on CNBC, Navarro insisted that American cars should be built with entirely American-made parts. “We want the tires made in Akron. We want the transmissions made in Indianapolis. We want the engines made in Flint and Saginaw. And we want the cars manufactured here,” he said, suggesting Tesla’s supply chain relies too heavily on components from China, Japan, and Taiwan.
Musk responded by posting a video of free-market economist Milton Friedman explaining the global cooperation involved in producing a pencil — a not-so-subtle criticism of protectionist policy.
Over the weekend, Musk had already started criticizing Navarro’s tariff proposals, dismissing his qualifications and labeling him egotistical. Navarro fired back during a Fox News interview, accusing Musk of opposing tariffs simply to protect Tesla’s bottom line.
Private Pleas, Public Pressure
Behind the scenes, Musk has reportedly been lobbying President Trump directly to walk back the harshest parts of his tariff package, according to two sources familiar with the discussions. The new policy calls for a 10 percent global minimum tariff, with higher rates for countries running large trade surpluses with the U.S.
The rollout of the tariff plan last week caused markets to tumble to levels not seen since the onset of the COVID-19 pandemic in March 2020. However, Tuesday saw a dramatic reversal. The Dow Jones, S&P 500, and Nasdaq all jumped over 3 percent in early trading after Treasury Secretary Scott Bessent signaled that the administration was open to trade negotiations.
“I think you’re going to see some very large countries with large trade deficits come forward very quickly,” Bessent told Fox News. “If they come to the table with solid proposals, I think we can end up with some good deals.”
President Trump echoed that sentiment Tuesday, posting on Truth Social about a productive call with South Korea’s acting president and plans to meet with a high-level Japanese delegation to discuss trade, energy, and military cooperation. Yet he dismissed an offer from the European Union to eliminate industrial tariffs as insufficient, doubling down on his demand to erase the U.S. trade deficit with the bloc.
Global Response and Rising Tensions
China, a frequent target of Trump's trade policies, already announced retaliatory measures last week — a 34 percent tariff on U.S. goods — prompting Trump to threaten a 50 percent counter-tariff on Chinese imports.
Economists have warned that the growing trade war could lead to higher prices for American consumers and slow economic growth, especially as inflation remains a concern. Critics argue that targeting countries based on overall trade deficits — rather than on specific sectors or unfair practices — is an outdated and counterproductive approach.
Musk, who has long championed renewable energy and high-tech manufacturing, appears increasingly frustrated by policies he believes threaten American innovation. “Tariffs are just taxes by another name,” he wrote Monday. “They hurt consumers and small businesses the most.”
