Tensions are rising within the White House after Elon Musk threw shade at the architect who shaped Trump's tariff policy and was responsible for docking $11 billion off of Musk's net profit after the stock crashed due to the sweeping tariff policy that Trump released.
Musk was suspiciously quiet since Trump's Liberation day tariff announcement that killed $2.5 trillion from the U.S stock market, and now we understand why.
On X, Musk took jabs at the Harvard doctorate, claiming that going to Harvard might be a bad thing instead of a good thing.
One chimed in to the conversation to defend Navarro, saying his assessment of the tariff was correct. This prompted Musk to retort
"He ain't sh&*#."
Navarro debunks rumours of a rift
Instead of retaliating, Navarro seems to reply in a unsually understanding manner, saying
"Musk is just protecting his own interests as any business person would do. Elon sells cars. He's simply protecting his own interests."
While Tesla's headquarters is stationed in Texas, but the car uses parts from many parts of the world; from Mexico, China, Japan, Taiwan and even China.
The tariff has also slashed billions off of Musk's network, though he is still valued as the richest person in the world. Tesla's stock dropped 14$ between Trump's tariff announcement.
The shares of privately held Musk-led SpaceX also declined by 12% last week, according to Notice, a secondary market data provider.
Navarro goes on to clarify that there is no rift between him and Musk, but Musk is just using the X platform as a giant microphone to voice his thoughts. And he feels that Musk have the right to say whatever he wants.
Musk urges for a zero tariff situation with Europe
The de facto Department of Government Efficiency Boss, whose special government employee status is set to expire at the end of next month, later shared his hopes for normal trade relations between the U.S and Europe during a video-linked at congress in Florence of Italy's right-leaning co-ruling League Party.
"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, effectively creating a free trade zone between Europe and North America."
As part of his so-called "Liberation Day" on Wednesday, Trump had announced a tariff of 10% and customized rates against U.S trading partners that have trade surpluses with America. Those rates included a 20% generic tariff against the European Union.
Impact of Trump's tariff on the market
The latest wave of tariffs introduced by Trump — including a sweeping 10% baseline tariff on nearly all U.S. trading partners that took effect Saturday, along with tailored rates set to roll out Wednesday — has sent shockwaves through the stock market.
Over the past five trading days, the Dow Jones Industrial Average has plunged 3,068 points, the S&P 500 has dropped by 454 points, and the Nasdaq has fallen by 1,458 points, marking a turbulent response to what is being called the most extensive set of tariffs implemented in over a century.
Despite the growing divide between Musk and key members of Trump’s administration, reports suggest that Trump may be planning for Musk to step back from his duties at DOGE in the near future. However, no official timeline has been provided.
As tensions escalate over tariffs and their economic fallout, it remains unclear how this rift will affect Musk's influence within the administration or his business interests moving forward.
For now, his criticism of Navarro highlights deep divisions within Trump’s team over trade policy—a conflict that could shape U.S. economic strategy for years to come.