Elon Musk and Peter Navarro, two important figures connected to President Trump, have gotten into a public disagreement about tariffs, or special taxes placed on goods coming from other countries. Navarro helps Trump with trade and manufacturing policy and strongly supports these tariffs. Musk, who runs the electric car company Tesla, does not like the tariffs.
The argument started when Navarro spoke on a TV channel called CNBC on Monday. He said Musk “isn’t a car manufacturer — he’s a car assembler,” meaning Tesla cars are put together with parts made outside America. Navarro added that Musk opposes tariffs because “he wants the cheap foreign parts and we understand that.”
Musk responded quickly on his own social media platform, called X. He wrote, “Navarro is truly a moron. What he says here is demonstrably false.” Musk also said, “Tesla has the most American-made cars. Navarro is dumber than a sack of bricks.”
When asked about this argument, the White House press secretary Karoline Leavitt said, “Boys will be boys,” suggesting it was just a normal disagreement. She also noted that Navarro and Musk simply have very different ideas about trade and tariffs.
Navarro claims that Tesla uses many parts from countries like Japan, China, and Taiwan. He explained, “The difference is, in our thinking and Elon’s on this, is that we want the tires made in Akron. We want the transmissions made in Indianapolis. We want the engines made in Flint and Saginaw. And we want the cars manufactured here.”
However, experts agree that Musk is correct when he says Tesla builds most of its parts in America. Tesla makes its own batteries and even has a lithium refinery for making battery materials. Government information shows that for Tesla’s Model 3 Long Range, about 75% of the car’s parts are made in the U.S. or Canada. The Model Y, another Tesla car, is listed by Cars.com as the most “Made in America” car because of where its parts come from and where it’s built.
Musk also criticized Navarro’s education. After someone online defended Navarro by mentioning his PhD in economics from Harvard, Musk replied, “A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem.”
Navarro responded to Musk on Fox News, saying, “Elon, when he’s in his DOGE lane, is great, but we understand what’s going on here. Elon sells cars. He’s simply protecting his own interests.” Navarro also said there was no serious problem between them, adding, “Look, Elon, he’s got X, he’s got a big microphone. We don’t mind him saying whatever he wants.”
Musk has suggested getting rid of tariffs altogether. Speaking at a conference in Italy, he said, “I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zero-tariff situation, effectively creating a free trade zone between Europe and North America.” He also wants people to have more freedom to move and work between the two places.
Even though tariffs do affect Tesla, they are expected to harm Tesla less than other car companies. While many car companies might lose between 10% and 20% of their profits due to tariffs, Tesla might lose less than 5%.
This public argument between Musk and Navarro highlights how complex trade issues can be, even causing disagreements among people working closely together in government and business.
This article is based on the following articles:
https://abcnews.go.com/Politics/musk-top-trump-adviser-feud-tariffs-dumber-sack/story?id=120597806
https://www.cnn.com/2025/04/08/business/elon-musk-peter-navarro-comments-tariffs/index.html
https://www.npr.org/2025/04/08/nx-s1-5356183/tesla-musk-navarro-fact-check
Background Information
What Are Tariffs?
Tariffs are special taxes placed by a government on goods brought into a country from other nations. Countries use tariffs for different reasons, such as protecting their own industries from foreign competition, encouraging people to buy products made locally, or responding to trade conflicts with other countries. Tariffs usually make imported products more expensive.
Who is Elon Musk?
Elon Musk is a well-known entrepreneur who started or leads several important technology companies, most famously Tesla, which makes electric cars. Tesla is known for popular models such as the Model 3 and Model Y. Musk is also known for running SpaceX, a company that builds rockets and spacecraft, aiming to eventually send people to Mars. He is one of the richest people in the world and is famous for his outspoken opinions on social media.
What is Tesla?
Tesla is an American company that produces electric vehicles, batteries, and energy storage solutions. Electric vehicles, or EVs, run on electricity instead of gasoline, making them important for reducing pollution and fighting climate change. Tesla cars are famous for their advanced technology, strong performance, and long-range batteries, allowing them to travel many miles on a single charge.
What Does “Made in America” Mean?
“Made in America” refers to products created mostly or entirely in the United States. Products with this label often receive greater support from American consumers because people like to help local businesses and support the economy in their own country. However, sometimes the definition includes parts from neighboring countries like Canada, due to very close trade relationships.
What is Vertical Integration?
Vertical integration is when a company controls several or all stages of production for its products, instead of buying parts from other businesses. For example, a car company that is vertically integrated might make its own batteries, seats, or electronics, rather than purchasing these from different companies. This allows companies more control over their products, can lower costs, and helps them manage quality and supply chains better.
Who is Peter Navarro?
Peter Navarro is an economist and former professor who became a key adviser on trade and economic policy to President Trump. Navarro is known for strongly supporting tariffs and other trade restrictions. He believes tariffs help protect American jobs and businesses from unfair competition from other countries. His views often cause debate among economists and politicians.
What is the Trump Administration?
The Trump administration refers to the presidency of Donald Trump, who served as the 45th President of the United States from January 2017 to January 2021, and again from January 2025 onward. Trump is known for his strong stance on trade and tariffs, believing that America needs tougher trade policies to protect its workers and industries. During his presidency, he frequently imposed tariffs on many goods from countries like China, Mexico, and Europe, causing debates and disagreements in America and internationally.
Economic Terms to Know:
- Economist: A person who studies how people, businesses, and governments make decisions about producing, selling, and buying goods and services.
- Gross Profit Margin: The percentage of money a company keeps after subtracting the direct cost of making its products. It shows how efficiently a company operates.
- Supply Chain: The process involved in producing and delivering a product, from gathering materials to selling the finished item.
Social Media Platform X (Formerly Twitter):
The social media platform “X” mentioned in the article was previously known as Twitter. Elon Musk bought Twitter and renamed it “X.” It is a popular platform where people share short messages and opinions with millions of users instantly.
Countries Mentioned and Their Importance:
- Japan, China, and Taiwan: These countries are major global suppliers of electronics, batteries, and various car parts. Many products around the world contain parts made in these countries because of their advanced technology and lower production costs.
- Canada: Often grouped with the United States for trade purposes due to the North American Free Trade Agreement (NAFTA), which has historically allowed easy trade between the two countries.
The Importance of Electric Vehicles (EVs):
Electric vehicles are becoming more important as the world looks to reduce pollution, combat climate change, and rely less on fossil fuels like gasoline. Tesla is a leader in EV technology, helping to popularize electric cars and making them more accessible and desirable to consumers.
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