Elon Musk, CEO of Tesla, has publicly clashed with Peter Navarro, President Donald Trump’s senior trade adviser, over the administration's tariff policies. The feud escalated when Musk described Navarro as "truly a moron" and "dumber than a sack of bricks" following remarks by Navarro that undermined Musk's business model.
Elon Musk, a key aide to Donald Trump and DOGE Chief, has signaled opposition to the Trump tariffs, and the Tesla CEO hit out after Navarro described him as "not a car manufacturer" but “a car assembler.”
Peter Navarro, President Donald Trump's top trade adviser, on Monday dismissed tech-billionaire Elon Musk's push for "zero tariffs" between the United States and Europe, calling the Tesla CEO a "car assembler" reliant on parts from other countries.
Peter Navarro, widely seen as the architect of Donald Trump's tariff plans, told CNBC that Elon Musk had done a good job with his work to streamline US government, but the Tesla CEO's comments on tariffs were not surprising given his role as "car person," the latest salvo in a growing feud between the Trump advisers.
"When it comes to tariffs and trade, we all understand in the White House - and the American people understand - that Elon is a car manufacturer, but he's not a car manufacturer. He's a car assembler," Navarro said, adding that many Tesla parts came from Japan, China and Taiwan. "He's a car person. That's what he does, and he wants the cheap foreign parts."
Elon Musk, speaking at a League Party congress in Italy, countered by promoting the idea of a US-EU free trade zone to eliminate tariffs altogether. His comments came just days after Donald Trump announced hefty reciprocal tariffs targeting nearly 60 countries.
The feud intensified over the weekend when Elon Musk took to his social media platform X to respond to a post defending Peter Navarro’s economic credentials.
Elon Musk dismissed Navarro’s Harvard PhD in economics as a liability rather than an asset, suggesting it led to arrogance over practical knowledge. Navarro retaliated by accusing Elon Musk of prioritising cheap foreign parts for Tesla vehicles over American manufacturing.
Meanwhile, billionaire fund manager Bill Ackman, who endorsed Donald Trump's run for president, ratcheted up his pleas with Washington to hit pause on tariffs to stave off “a major global economic disruption.”
While tariffs are an essential tool for eliminating "unfair trading practices" by partners, implementing them without allowing time for agreements will do "unnecessary harm," he said in a post on social media platform X on Tuesday.
A pause of 30, 60, or 90 days will prevent "a major global economic disruption that would harm the most vulnerable companies and citizens of our country," Ackman added.
(With agency inputs)
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.