LOS ANGELES.–Trading barbs in the press, 53-year-old Tesla and SpaceX CEO Elon Musk, head of 78-year-old President Donald Trump’s Government Efficiency Office, and Trade Representative Peter Navarro traded barbs, with Musk calling Navarro a “moron” for architecting his tariff policy. Musk’s Tesla Motors and many other U.S. companies that manufacture in China are going to pay a premium for selling their cars and products in the United States. While Musk is quick to denounce Navarro, his ideas about leveling trading practices around the globe have been bandied about for year with economists but most giving up because of strict tariff policies by many foreign countries. Navarro, a University of California research economist by trade, knows a lot more about global trade and its long history than Musk. “Navarro is truly a moron,” Musk called Navarro on CNBC.
Navarro and a handful of other like-minded global economists have long-chased the holy grail of all international trade, a zero tariff environment. For all practical purposes, it exists in theory only but not in the real world where every country dealing with imports-and-exports apply its own tariffs and duties to do business. So, when Trump campaign in 2024 and came to office Jan. 20, he wanted to implement his long-awaited strategy of leveling the trading field around the world doing business in the U.S. Whatever Wall Street does in response to tariffs doesn’t mean that Trump’s efforts to level the playing field for U.S. goods-and-services is not a worthy ambition for the future. Certainly Navarro believes ending foreign tariffs would benefit all kinds of U.S. companies, certainly the auto industry. GM, Ford and Chrysler would like to do more business in Europe and elsewhere.
Showing that Musk isn’t long for the White House, his reaction to Navarro goes with the fake news but doesn’t deal with long-standing trade imbalances and deficits that plague the U.S. economy. “Peter Retarrdo,” Musk called Navarro on his X platform, showing his tendency to go unfiltered, a real liability to the kind of messaging needed by the Trump administration. Trump doesn’t want to project to the country and rest of the world that the White House is at war with itself, with Musk shooting off insults to Trump’s chief trade representative. Trump said he’s long-believed, like Navarro, that the U.S. has been taken advantage of by many countries all over the planet with unfair trade policies. So, when it comes to Trump’s own ideas, Musk could very well be saying the same things about Trump. Musk’s days in the White House are numbered with the end coming sooner rather than later.
Saying “Navarro is dumber than a sack of bricks,” Musk guarantees that he won’t be around much longer. Trading insults like that reflects directly on the White House when Trump and Navarro are trying to accomplish something never done in U.S. history, getting access to U.S. companies to foreign markets with burdensome tariffs and duties. If the European Union ended tariffs on U.S. cars, it would open up a new market for an exciting generation of automobiles from Detroit. EU tariffs and duties have made it prohibitive for U.S companies to do business in Europe, the same in China and Japan. White House Presss Secretary Caroline Levitt tried to smooth over the feud between Musk and Navarro but it’s an embarrassment to the White House. Whether Musk likes it or not, Trump and Navarro are committed to leveling the global trading environment.
Trump’s tariff policies could actually backfire like many economists and investors predict, with many countries refusing to play ball. If that happens, Trump would have to adjust his policy to reflect the reality of global markets, refusing to end trade protectionism with the U.S. Navarro said Musk is great “when he’s in the DOGE lane but thought he’s out of line commenting about Navarro’s expertise in global trade practices. Yet Trump can’t have two of his advisors feuding for too long because it continues to roil markets, not trusting Trump’s next moves. “Whatever. We are the most transparent administration in history, expressing our disagreements in public,” said Trump’s press secretary Caroline Levitt. Levitt doesn’t reassure anyone watching a slow motion train wreck in the making. Something’s got to give soon before the White House implodes.
Navarro should not denounce Tesla Motors because of his personal kerfuffle with Elon Musk. “He’s not a car manufacturer. He’s a care assembler in many cases,” saying Musk sources his car parts from many foreign suppliers. Well, in case Navarro woke up yesterday, that’s the nature of the entire global care industry, sourcing parts from all over the planet. There’s not a care made anywhere that doesn’t source parts from where they’re available. Whatever reality of today’s auto manufacturing, it seems petty for Navarro to run down Tesla when it’s still a great American car company, something rare in today’s world. Navarro should give Musk credit for starting the worldwide EV revolution, sharing technology with many other companies including GM, Ford, Mercedes and BMW. Musk and Navarro should stop their public food fight before it’s too late.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumnist.com author of Dodging The Bullet and Operation Charisma.
