White House trade adviser Peter Navarro has fired back at tech billionaire Elon Musk, accusing him of putting Tesla’s business interests ahead of the country’s new trade policies. Navarro made the comments after Musk criticized the Trump administration’s sweeping new tariffs—taxes on imported goods—that recently went into effect.
In an interview, Navarro explained that while there’s “no personal rift” between him and Musk, he believed the Tesla CEO’s concerns about tariffs were mostly about protecting his own company.
“Elon when he’s in his DOGE lane is great, but we understand what’s going on here,” Navarro said, referring to Musk’s role at the Department of Government Efficiency (DOGE). “Elon sells cars. He’s simply protecting his own interests.”
Navarro also pointed out that Tesla’s factories, including the massive plant in Texas, may be based in the United States, but the parts used to make the cars come from all over the world. He listed countries like China, Mexico, Japan, and Taiwan as key sources of Tesla’s vehicle components.
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This global supply chain, Navarro argued, is the real reason why Musk is so upset about the new tariffs. “They get a lot of their content from overseas,” he added.
The disagreement between the two men didn’t stay calm for long. After Navarro’s remarks aired, Elon Musk quickly fired back—this time on X (formerly known as Twitter), where he’s known for speaking his mind.
Responding to someone who defended Navarro’s economic views, Musk posted a sarcastic comment about Navarro’s background. “A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk wrote. “Results in the ego/brains >>1 problem.”
Musk’s jab was clearly aimed at Navarro’s academic qualifications, suggesting that having a high-level degree can sometimes make people overconfident and out of touch with real-world problems.
The back-and-forth has drawn a lot of attention, especially since both men have played public roles in the Trump administration. Musk, although primarily known for his companies like Tesla and SpaceX, was appointed to a short-term position at the DOGE. However, his role there is set to end next month, raising questions about how much influence he will continue to have in government decisions.
Musk Pushes for Free Trade with Europe
Even as he criticized the new tariffs, Musk appeared at a political event overseas to talk more about his trade views. Speaking via video call at a conference hosted by Italy’s League party, Musk said he hopes that the United States and Europe can remove all tariffs and create a free trade zone.
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“In the end, I hope everyone can agree that, ideally, Europe and the United States should aim for a zero-tariff arrangement,” he said. Musk was addressing Matteo Salvini, the leader of the League party, during the talk.
Musk also said that people should have the freedom to live and work across both the US and Europe. “That’s definitely the advice I’ve given to the president,” he stated.
His comments at the event were seen by some as an attempt to show that free trade and open markets benefit both sides—not just big companies like Tesla.
Tariffs Begin Amid Major Business Pushback
Musk’s criticism came right after President Trump introduced major new tariffs during last week’s “Liberation Day” announcement. These are some of the biggest trade restrictions in U.S. history. A basic 10% tariff on all imported goods began on Saturday. Country-specific tariffs will follow this Wednesday.
The new rules have already caused a stir in the business world. Many large U.S. companies are pushing back, worried that the tariffs will increase prices, make it harder to get parts, and possibly lead to job cuts.
Despite the backlash, Navarro remains firm that these tariffs are good for America. But the loud and public disagreement with Musk has put a spotlight on how even top business leaders are divided on the issue.
Whether it’s about car parts, politics, or PhDs, this clash between Navarro and Musk shows just how heated the debate around tariffs has become.
