World
India
Elon Musk has publicly criticized Donald Trump’s chief trade adviser, Peter Navarro, over the president’s sweeping tariffs, prompting a sharp response from Navarro. The exchange highlights growing tensions within the White House amid a financial downturn, as markets plummet and major banks warn of a potential recession.
Elon Musk Advocates for Zero-Tariff Trade Zone
The Tesla and SpaceX CEO’s remarks came after a video of Navarro discussing tariffs on CNN surfaced on Musk’s social media platform, X. A user on the platform praised Navarro, citing his PhD in economics from Harvard University.
“A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem,” Musk responded in a 1:30 a.m. post.
When another user defended Navarro’s stance on trade, Musk dismissed the argument, writing: “He ain’t built shit.”
The controversy comes on the heels of Musk’s address to a conference of Italy’s far-right party, where he voiced support for a “zero-tariff situation” between the U.S. and the European Union, effectively advocating for a free-trade zone. Musk has historically been skeptical of tariffs but has largely remained silent on the issue on X, where he frequently shares his views on politics and current events.
Navarro Fires Back at Elon Musk
Navarro, a staunch proponent of tariffs and a key figure behind last week’s trade policy announcement that sent markets tumbling, responded to Musk’s comments during an interview with Fox News on Sunday.
“Elon, when he’s in his DOGE lane, is great,” Navarro said. “Elon sells cars, and 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 business person would do.”
Navarro also defended the administration’s focus on supporting American manufacturing, adding, “We’re more concerned about Detroit building Cadillacs with American engines, and that’s what this is all about.”
He further dismissed Musk’s proposal for a zero-tariff trade zone with the EU, arguing that Musk “doesn’t understand” the economic implications.
Navarro’s Trade History and Legal Troubles
Navarro has long been a hardliner on trade policy. During Trump’s first term, he opposed granting Australia an exemption from steel and aluminum tariffs and later accused the country of exploiting an eventual exemption to flood the U.S. market—despite Australian imports accounting for less than 2% of America’s steel and aluminum supply.
At a 2019 meeting in Japan between Trump, then-Australian Prime Minister Scott Morrison, and senior officials, Navarro was described as “unnecessarily sharp” in his criticism of Australia’s aluminum exports, according to a source present at the discussion.
Beyond trade, Navarro has faced legal issues. He served jail time last year for refusing to comply with a subpoena related to the January 6, 2021, Capitol riots. He has also been criticized for fabricating an economic expert, “Ron Vara”—an anagram of his own name—whom he cited in multiple books as a source of financial insight.
Financial Markets React as Recession Fears Grow
The fallout from Trump’s tariff policy has led to significant market instability. Over Thursday and Friday, U.S. markets lost an estimated $6.6 trillion in value in a downturn not seen since the COVID-19 pandemic. JPMorgan, the nation’s largest investment bank, has now placed the probability of a U.S. recession at 60%, forecasting economic growth to decline from 1.6% to -0.3%.
Despite the market chaos, Treasury Secretary Scott Bessent defended the administration’s trade strategy on NBC’s Meet the Press, saying, “Americans should take great comfort in the fact that share market infrastructure worked smoothly amid a record volume of trading on Friday.”
“Americans who have put away for years in their savings accounts, I think they don’t look at the day-to-day fluctuations of what’s happening,” Bessent added.
Nationwide Protests Erupt
The weekend was marked by mass protests against Trump, Musk, and the administration’s broader policy agenda. Tens of thousands of demonstrators marched through major U.S. cities, with protests occurring in all 50 states and even spreading to European capitals.
Also Read: How Musk, Zuckerberg, and Bezos Lost Billions as Trump’s Tariffs Shook Markets
