Relations between President Donald Trump and Tesla Chief Executive Elon Musk have hit an all-time high following differences regarding the administration’s new “Liberation Day” tariffs. What was once viewed as a strong partnership within the current administration now seems strained.
Trump last week revealed a broad tariff proposal that would subject all imported products to at least a 10% tax. The policy has been strongly criticized by Musk, whose companies are based on long global supply chains. In a video appearance at a political rally attended by Italy’s League Party on April 5, Musk referred to the tariffs as “economically counterproductive” and advocated for a free trade pact between North America and Europe.
“This has definitely been my counsel to the president,” Musk stated, calling for a zero-tariff world. He later posted a video on X of economist Milton Friedman speaking about the inefficiencies of tariffs, which was widely seen as a direct rebuke of Trump’s policy.
Musk didn’t rest there he made a personal attack against Peter Navarro, one of the most important tariff strategy architects and senior adviser to Trump. Brushing aside Navarro as a person who “has not built anything,” Musk described him as a “moron” on social media. Navarro hit back at Musk, terming him as a “car assembler” doing nothing but defending his own interests.
Trump, meanwhile, defended the policy, stating that the European Union has long taken advantage of the U.S. in trade. He vowed to reduce the trade deficit and said the tariffs would force Europe to buy American energy products.
Even as tensions escalate, the position of Musk in the Department of Government Efficiency (DOGE), of which he is currently in charge, has not changed. There has been no word from the White House regarding the situation or Musk’s future participation.
The aftermath represents a turn in what was once a central relationship within Trump’s administration.
