‘Truly a moron’: Elon Musk escalates spat with Peter Navarro over Trump tariffs
10:43 Share

This episode is brought to you by LifeLock. It's tax season, and we're all a bit tired of numbers. But here's one you need to hear. $16.5 billion. That's how much the IRS flagged for possible identity fraud last year. Now here's a good number. $100 million. That's how many data points LifeLock monitors every second. If your identity is stolen, they'll fix it. Guaranteed. Save up to 40% your first year at LifeLock.com slash podcast. Terms apply.

Why has the billionaire bad boy Elon Musk created a rare political rift in public view between two prominent figures, himself and President Donald Trump?

Now, the tension exploded online, but it stemmed from behind-the-scenes efforts by Musk to halt sweeping new tariffs on Chinese imports. For someone who poured nearly $290 million into helping Trump and the GOP in the last election cycle, Musk's sharp pivot isn't just a disagreement.

It's a full-blown conflict that challenges assumptions about his power. Now, Musk's efforts weren't subtle, though. While embasting Trump's trade advisor Peter Navarro in a series of blistering ex-posts, Musk was also working channels behind the scenes, reaching out to President Donald Trump directly.

According to two individuals familiar with the matter, Musk had been making personal pleas to the president to reverse his administration's decision to impose tariffs of up to 34% on Chinese imports, with another round of 50% tariffs looming. So far, those appeals have failed Elon.

Now, what makes this all more dramatic is how public Elon has made his case. He posted a video of Milton Friedman, the late economist known for promoting free market policies, arguing in favor of international cooperation via trade. The video included Friedman's famous breakdown of a simple pencil's global supply chain. It was a clear rebuke of Trump's new tariffs and a challenge to the protectionist philosophy driving them.

Now, Trump has not directly responded to Elon Musk's pleas online, but his administration has pressed forward. In a statement, White House Press Secretary Karen Leavitt stood by the administration's actions, saying when he makes a decision, everyone rose in the same direction to execute. That's why this administration has done more in two months than the previous admin did in four years.

Not everyone is roaring in the same direction, though. Musk launched sharp criticisms toward Navarro, calling him a moron and dumber than a sack of bricks. After Navarro appeared on CNBC and downplayed Musk's role in manufacturing, calling him more of a car assembler. Elon Musk was pretty pissed off. He said Tesla is the most vertically integrated auto manufacturer in America with the highest percentage of U.S. content.

He ended one post on X saying, Ron Vara, a fictional trade expert, Navarro reportedly invented as a character in his books. And he said, Navarro should ask the fake expert he invented. Ron Vara, you switch those letters around. It spells Navarro. He made it up.

Now, it's not the first time Musk has clashed with Trump-era trade policies. Back in 2020, Musk's Tesla sued the Trump administration over tariffs on parts imported from China. But when the lawsuit gained traction, Musk pulled away, upset at how it might be perceived politically. He reportedly lashed out at employees who had pushed for the lawsuit, after conservative voices accused him of siding with China. Now, this matters for two big reasons. First,

It exposes how even those with direct access to political power can struggle to shape outcomes that affect their own businesses. And Musk isn't just any CEO, though. His companies rely on the global supply chains, especially for EV components and rare earth minerals. Tariffs that restrict these trade routes directly affect Tesla's ability to manufacture affordably and competitively.

Second, the spat reveals growing cracks within the conservative coalition, especially on issues like free trade, immigration, and federal spending. The consequences of Trump's new tariffs are not abstract, though. Musk has long argued that tariffs are functionally a tax on American consumers. His brother, Kimball Musk, echoed that this week, writing on X, "Who would have thought that Trump was actually the most high-tax American president in generations?" His point here?

Tariffs raise prices domestically while failing to effectively punish foreign producers. Kimball's comments came weeks after publicly appraising Trump at a White House event featuring Teslas, showing how rapidly the loyalties in that party have shifted. Tesla's already feeling the impact, though. The stock price has dropped. The target was $5.50 and now it's $3.15. There's weaker demand and increased political risk.

Tesla has essentially become a political symbol globally. That's a very bad thing for Elon Musk and the future of the tech that they're building. It's disruptive. And it's a crisis going on right now for Tesla and Elon. The Tesla shares dropped more than 2.5% on Monday, closing at $233.29. They're back up now. But for the year, the Tesla stock has lost $1.

38% of value not going up into the right anymore. Everything's calmed down. Everything went down when Elon joined Trump. Now, Musk's criticism extends beyond trade policy. He's also disagreed with other aspects of Trump's platform, including the treatment of skilled immigration under H-1B visa and the cost-trimming measures imposed at the U.S. Department of Government Efficiency, where he played a leadership role.

Now, his departure from the post is expected in a few weeks, further signaling a cooling of relations with the Trump camp. Now, at the core of Musk's argument is a call for international cooperation. During a conversation with Italian Deputy Prime Minister Matteo Salvini over the weekend, Musk pushed for a free trade zone between the U.S. and Europe.

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 Elon Musk spoke about on X. He also pushed for more liberal migration policies between the two regions, saying workers should be free to live and work where they choose. He believes that

Countries are just a line, an imaginary line that people drew because they wanted power. Now, Musk's views aren't universally shared, though, even within his own business circle. But he isn't entirely isolated either.

A close friend of Musk, Joe Lonsdale, said on X in a public post, he said he had been urging friends in the administration to reconsider the tariff plan, warning that it would ultimately damage U.S. companies more than their Chinese counterparts. Lonsdale declined to elaborate on the efforts, though, but others in Musk's network were reportedly working over the weekend to form an informal group that would push back on Trump's hardline stance.

Now, the business community's frustration comes from feeling blindsided. Many believe that Trump, while tough in rhetoric, could be persuaded by moderate voices in his cabinet like Treasury Secretary Scott Besant,

They were also surprised at the hard stance from Commerce Secretary Howard Lutnick, once seen as an Elon Musk ally, who emerged as a strong proponent of protectionist policies. It's not just a business disagreement. It's also a political one. Musk's increasingly vocal disapproval of Trump's direction threatens to shake up alliances within the GOP. If Musk's influence as a donor and culture figure grows, so does the weight of his public criticism.

It also raises questions about how much power high profile supporters actually have when the policies start to bite. Now, if you're listening to this on any podcast platform that has comments, I want you to leave me a comment below. What do you think about Trump and Elon Musk? Do you think Trump thinks Elon Musk is now some sort of traitor for going behind his back and denying his policies?

It's a tough situation for Elon, a tough situation for Trump. Trump can just brush him aside. He doesn't need him anymore. He used him for the election and maybe he pushed him aside. He doesn't need him. That could be a thing. Let me know in the comments. Now, Musk may be recalibrating his public stance, though. On Monday, he posted an X thread from the official U.S. trade representative account, which defended the tariffs by accusing China of unfair practices.

Make your next move with American Express Business Platinum. Earn five times membership rewards points on flights and prepaid hotels booked on amextravel.com. And with a welcome offer of 150,000 points after you spend $20,000 on purchases on the card within your first three months of membership, your business can soar to new heights. Terms apply. Learn more at americanexpress.com slash business dash platinum. Amex Business Platinum. Built for business by American Express.

Musk added a brief good points, signaling he may be hedging or seeking a middle ground after days of intense online confrontations. Still, the rift between Musk and Trump's trade team is more than just a social media squabble. They're not teenagers here. It's a reflection of deep tensions between economic nationalism...

in global enterprise. Musk, who has built his empire on international cooperation and distributed manufacturing, is now clashing with a political movement he helped empower, but whose values are becoming increasingly difficult for his companies to navigate. Now, the fallout from this dispute could shape the future of Tesla and also the future of Elon Musk.

If he wins this and gets behind the no tariff free trade agreements, and that becomes a thing in the United States, and he pushes Donald Trump to the side, he could be seen as a martyr for the other side from the Democrats and liberals. But if he sticks with Donald Trump,

and he stays the game plan of the GOP and the MAGA movement, he could be a hero on that side too. So either way he plays the game, he's going to win, I believe. Let me know in the comments what you think. So that's it for today, everybody. I want to make you a deal real quick. We are a tech news channel and we are the Elon Musk show. So I want to ask you for a favor. Please, I just need a subscription or a follow on whatever podcast platform you're on right now.

And my promise to you, this is the deal. I promise to you is I will continue to make these episodes for the next 10 years for free. There will be no walls ever for the next 10 years. I've been doing this for five years now. So I have it in my heart to continue to do this for the next 10 years with your help. So all I need from you, a follow or a sub. That's it for today, everybody. Let me know what you think. Take care of yourselves and each other, and I'll see you in the next one.