Cracks are emerging in the Trump administration as Elon Musk doubled down in a spat with Donald Trump’s trade advisor Peter Navarro.
The US President commanded unprecedented loyalty from his administration and advisors after entering the White House for his second term on January 20. The Republican handpicked those who would support him every step of the way so he could smash through his vision for America. But his near-blanket tariffs on friends and foes alike has finally exposed fraying relations within his administration as his advisors struggle to articulate how short term pain will seriously lead to economic prosperity in America.
Elon Musk has made his first serious break from the Trump administration, calling out the President’s senior trade advisor Peter Navarro, branding him a “moron” in a post on X/Twitter as splits emerge over Mr Trump’s controversial tariff plan.
The billionaire and prominent Trump ally Mr Musk made the remarks in response to an interview Mr Navarro gave to CNBC, where he spoke about Tesla being a “car assembler” and not a car manufacturer that could face steep tariffs. His comments came as Mr Trump issued tariffs on goods coming into the US from abroad, including parts for cars.
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Mr Navarro said: “In many cases, if you go to his Texas plant, a good part of the engines that he gets, which in the EV cases are the batteries, come from Japan and come from China. The electronics come from Taiwan.
“The difference is, in our thinking and Elon’s on this, is what we want the tires made in Akron (Ohio),” he continued. “We want the transmission made in Indianapolis. We want the engines made in Flint and Saginaw. And we want the cars manufactured here.”
Mr Musk hit out at the trade advisor, posting he “is truly a moron”. Replying to further comments, he added: “What he says here is demonstrably false.”
The billionaire then said: “Tesla has the most American-made cars.” In another X/Twitter post, he said: “Navarro is dumber than a sack of bricks. By definition whatsoever, Tesla is the most vertically integrated auto manufacturer in America with the highest percentage of US content. Navarro should ask the fake expert he invented, Ron Vara.”
Mr Musk previously appeared to voice his dissatisfaction at Mr Trump’s tariffs, sharing a clip of economist Milton Friedman explaining the advantages of free trade and how raw materials from different countries came together to make a single pencil that was cheaper for the American consumer.
Critics of Mr Trump’s economic vision for America claim it will lead to inflation as tariffs bite and that it will take resources away from technologies that should be invested in, such as AI. His supporters argue they are necessary to address trade imbalances and will lead to more well paid jobs in America in the long term.
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