Access the White House Watch newsletter at no cost
Your resource for understanding the implications of the 2024 US election for Washington and beyond
Elon Musk has publicly criticized the architect behind Donald Trump’s trade policies, marking one of the most visible signs of a potential divide between the US president and the wealthiest individual in the world.
In a striking outburst on Tuesday morning, Musk, a long-time opponent of tariffs, labeled trade advisor Peter Navarro a “moron” and “dumber than a sack of bricks” after Navarro referred to the Tesla CEO in a TV interview as merely a “car assembler”, accusing him of prioritizing his own interests.
This dispute follows several days of Musk expressing his discontent with the White House’s trade policies, despite having invested over $250 million in Trump’s campaign and heading the so-called Department of Government Efficiency (Doge).
Speaking virtually at a conference hosted by Italy’s rightwing Deputy Prime Minister Matteo Salvini over the weekend, Musk expressed optimism that the US and Europe could achieve “a zero-tariff situation, essentially establishing a free-trade zone”.
Furthermore, Musk shared a video on his social media platform X featuring free-market proponent Milton Friedman advocating for the benefits of a globalized economy by considering the various components and labor required to create a single pencil.
On Monday, Musk’s brother Kimbal, who serves on the boards of Tesla and SpaceX, called Trump’s tariffs a “structural, permanent tax on the American consumer” in a post on X. He added, “A tax on consumption also results in reduced consumption. This leads to fewer jobs.”
Musk’s political clout faced challenges even before Trump announced his expansive tariffs last week, especially following the significant defeat of Musk’s favored candidate in a Wisconsin Supreme Court election, which became a referendum on Doge’s budget-cutting strategies.
Last week, the White House also indicated that Musk’s government position, initially expected to extend until 2026, could conclude within weeks once his tasks with Doge are finished. Trump remarked that the billionaire would eventually “return to his businesses full time”.
In the interim, some of Musk’s ventures seem to have been adversely affected by his ties to the president. Tesla’s stock has plummeted over 35% since the start of the year due to rising concerns about an escalating trade conflict and backlash against the company from consumers who disapprove of Musk’s aggressive cost-cutting measures in government.
In a letter to US Trade Representative Jamieson Greer last month, Tesla cautioned that a trade war could expose it to retaliatory tariffs and raise the cost of manufacturing vehicles in the United States.
The electric vehicle manufacturer’s second largest market is China, where Tesla also operates a significant factory. Musk opened a $200 million battery plant in China just weeks prior.
Starlink, the satellite internet service from SpaceX, has also seen the loss of contracts with multiple governments as relations between the US and its allies become strained.
Musk has not responded to requests for comment. Navarro also did not immediately respond to inquiries regarding Musk’s influence on US trade policy.
The White House referred the Financial Times to a statement by press secretary Karoline Leavitt, which stated: “Whatever. We are the most transparent administration in history, openly expressing our disagreements in public.”
Additional reporting by Demetri Sevastopulo in Washington
