Trouble in Trump World as Elon Musk, Peter Navarro Trade Barbs Over President’s Auto Tariffs

President Trump’s top trade advisor, Peter Navarro, says that Elon Musk is only a critic of the new tariffs because of the impact it has on Tesla. While he says there is no “rift” between himself and the DOGE leader, Mr. Navarro asserted that he was more concerned about manufacturing cars in America than he is about Mr. Musk’s bottom line. The world’s richest man says he has taken a hit by serving in government, with Tesla stock down more than 35 percent year-to-date, Tesla sales being cut nearly in half in Europe, and his other businesses receiving less of his attention because of his government work. In recent days, Mr. Musk has subtly criticized the broad-based tariffs that the president claims will be permanent. In an interview with Fox News on Sunday, Mr. Navarro was asked about a recent X post by Mr. Musk, who claimed that holding a PhD in economics from Harvard — as Mr. Navarro does — is a “bad thing” that “results” in having more of an ego than a brain. “He ain’t built s–t,” Mr. Musk wrote in another post about Mr. Navarro. Mr. Navarro said Sunday that he completely understands where Mr. Musk is coming from, but that he is still wrong. Mr. Navarro claims that the Tesla chief is mostly concerned about the new 25 percent auto tariffs that apply not just to cars imported from overseas, but to car parts and materials as well. Many of the raw materials used to make Teslas — which are assembled in America — come from abroad and will be subject to the tariffs. “We just have to understand: Elon sells cars,” Mr. Navarro said. “He’s in Texas assembling cars that have big parts of that car from Mexico, China, the batteries come from Japan or China, the electronics come from Taiwan, and he’s simply protecting his own interests, as any businessperson would do.”“We’re more concerned about Detroit building Cadillacs with American engines, and that’s what this is all about,” he added.Cadillacs, like Teslas and most other vehicles, rely on a global supply chain, with a significant portion of their parts sourced from outside the United States, including Mexico and Communist China. GM’s Escalade, for example, is built with more than a third of parts sourced from outside the United States.Mr. Navarro was then asked if there was a “rift” between Mr. Musk and members of the administration who support the tariffs. “No,” the trade advisor asserted. “Elon, when he’s in his DOGE lane, is great.”Mr. Musk has been relatively quiet about Mr. Trump’s new tariff scheme, which includes a 10 percent tax on all imports as well as country-specific duties reportedly based on trade deficits and not trade barriers. On Saturday, Mr. Musk said he hopes for a “zero” tariff between the United States and the European Union — something the White House has said will not happen. “I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation — effectively creating a free-trade zone between Europe and North America,” Mr. Musk said in an interview with Italy’s deputy prime minister, Matteo Salvini. Mr. Navarro asserted Sunday that the White House is not looking to negotiate with anyone about tariff rates. He says the “national emergency” that is the death of the American manufacturing sector requires tariffs for the long term. “This is not a negotiation. This is a national emergency based on a trade deficit that’s gotten out of control because of cheating,” he said. Mr. Navarro hinted that the only way America would consider easing some of these tariffs is if nations close their trade deficits and start buying products from the United States. “We’re always willing to listen … But I just wanna just say to the world here: if you wanna come and talk to us, don’t say you wanna lower the tariffs and be done with it. It’s the non-tariff cheating. Stop manipulating your currency, stop dumping stuff in,” Mr. Navarro said.

Trouble in Trump World as Elon Musk, Peter Navarro Trade Barbs Over President’s Auto Tariffs

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