In a surprising twist, Elon Musk, the world’s wealthiest individual, has publicly distanced himself from the Trump administration’s latest tariff policies. Overnight, the Tesla and SpaceX visionary took aim at trade adviser Peter Navarro, criticizing the architect of President Trump’s sweeping trade measures while advocating for a “zero tariff situation” between the United States and Europe.
The fallout comes on the heels of Trump’s bold announcement last week, which slapped tariffs on nearly every U.S. trading partner. The decision triggered a sharp stock market plunge, erasing $11 billion from Musk’s personal fortune. Unfazed, Musk aired his grievances on Saturday via X, targeting Navarro with pointed jabs. Responding to a user praising Navarro’s tariff rationale, Musk snapped, “A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem.” When another user defended Navarro’s stance, Musk shot back, “He ain’t built sh—.”
Navarro, a key figure behind Trump’s tariff framework, didn’t take the criticism lightly. Appearing on Fox News’ Sunday Morning Futures, he fired back, suggesting Musk’s outburst stemmed from self-interest. “Elon, when he’s in his DOGE [Department of Government Efficiency] lane is great, but we understand what’s going on here. Elon sells cars. He’s simply protecting his own interests,” Navarro said.
He pointed to Tesla’s global supply chain, noting, “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.” Dismissing any serious tension, Navarro added, “There’s no rift here. Look, Elon, he’s got X, he’s got a big microphone. We don’t mind him saying whatever he wants.”
Musk, whose temporary role as a special government employee overseeing efficiency efforts expires next month, doubled down on his vision for trade. Speaking via video-link at a Florence congress hosted by Italy’s right-leaning League Party, he said, “At the end of the day, 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.”
Addressing League leader Matteo Salvini, Musk emphasized open labor markets, stating, “If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” and confirmed he’d shared this perspective with Trump.
The tariff saga began last Wednesday, dubbed “Liberation Day” by Trump, when he unveiled a 10% baseline tariff on all U.S. trading partners, alongside tailored rates—such as a 20% levy on the European Union—for nations with trade surpluses.
The measures, fully effective as of Saturday and Wednesday respectively, have rattled financial markets. The Dow Jones Industrial Average plummeted 3,068 points over five days, while the S&P 500 and Nasdaq dropped 454 and 1,458 points, respectively, marking the most significant tariff wave in a century.
As markets reeled, Trump jetted to Florida for a weekend at his Trump National Doral Golf Club, hosting an LIV Golf tournament. The golf enthusiast shared clips of himself on the course, shrugging off concerns about the economic turbulence. On Truth Social, he urged supporters to “hang tough, it won’t be easy, but the end result will be historic.”
For Musk, the stakes are personal. Tesla’s European sales, already down 42.6% in early 2025 per the European Automobile Manufacturers Association, face further strain from political backlash and Chinese competition. His clash with Navarro highlights a deeper rift over trade philosophy.
Last year, Musk warned podcast host Joe Rogan, “I think you need to be careful with tariffs,” citing Tesla’s intricate global supply chain. “When there are sudden changes in tariffs … it messes everything up,” he explained, advocating for predictable policies to allow companies time to adapt.
Musk’s stance aligns with his evolving political persona, increasingly rooted in free-market principles championed by economists like Milton Friedman, who fiercely opposed protectionism. Meanwhile, Italy’s Economy Minister Giancarlo Giorgetti, a League ally, cautioned against retaliatory tariffs, pushing for “de-escalation” with the U.S.
As Musk and Trump’s teams navigate this public spat, the debate over tariffs reveals a tension between ideological purity and pragmatic business realities.
The Fairview Gazette will keep our readers updated on any new reports on the ongoing tariffs implemented by the Trump admin.
