Musk in public spat with Trump’s top adviser over tariffs

Navarro – the most pro-tariff adviser in Trump’s economic circle and a key driver of last week’s announcement that has roiled markets and alarmed many Republicans in Congress – fired back at Musk on Sunday, US time.

“Elon when he’s in his DOGE lane is great,” Navarro told Fox News. “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 said the administration was “more concerned about Detroit building Cadillacs with American engines, and that’s what this is all about”.

He also said Musk “doesn’t understand” the zero-tariff zone with the EU he proposed.

During Trump’s first term, Navarro was well-known to Australian politicians and trade negotiators as the hard-line adviser who opposed giving Australia an exemption to steel and aluminium tariffs, and who later argued Australia exploited the exemption Trump granted to “flood” the American market even though steel and aluminium from Australia accounted for less than 2 per cent of US imports of those products.

At a 2019 meeting in Japan between Trump, then prime minister Scott Morrison and a large team of advisers, Navarro was “unnecessarily sharp” in prosecuting the case that Australia was in breach of an agreement to limit aluminium shipments, according to a person in the room.

Navarro went to jail last year rather than comply with a subpoena relating to the pro-Trump riots of January 6, 2021 in Washington. He also made up a fictional character, Ron Vara – an anagram of his last name – whom he quotes in several books as a source of economic wisdom.

About $US6.6 trillion ($10.9 trillion) was wiped from US share markets on Thursday and Friday in a market rout not seen since the COVID-19 pandemic. The country’s biggest investment bank JPMorgan also gave the US a 60 per cent chance of going into recession this year, predicting growth would fall from 1.6 per cent to -0.3 per cent.

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Among the Trump administration officials defending the tariff package on the Sunday morning political shows was Treasury Secretary Scott Bessent, who said Americans should take “great comfort” in the fact 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,” he told NBC’s Meet the Press.

The weekend was also marked by protests against Trump, Musk and the administration’s agenda, with tens of thousands marching in major cities. Demonstrations were held in all 50 US states, as well as in European capitals.