Tesla CEO Elon Musk publicly criticized White House trade adviser Peter Navarro on Saturday, as new tariffs between the U.S. and China shook global markets. The economic fallout from President Donald Trump’s latest tariff announcement has hit Musk’s companies hard. As stock prices dipped, Musk responded on his social media platform X, dismissing Navarro’s economic credentials and questioning his real-world achievements. The tension comes as the U.S. and China trade blows with reciprocal 34% tariffs, rattling Wall Street and tech firms.
Market Reels Under New Tariff Plans
On Tuesday, President Trump revealed sweeping tariffs on Chinese imports, setting off a rapid response from Beijing. Both countries imposed a 34% tax on goods moving between them. This sharp policy shift affected many industries, especially tech and automotive.
Tesla, which relies on parts made in China, saw its stock price fall sharply after the announcement. Elon Musk, known for his blunt takes on economic policy, remained silent at first. But by early Saturday, he responded online with direct criticism aimed at Navarro.
Musk’s Late-Night Swipe at Navarro
Musk posted several comments under a video where Navarro defended the tariffs during a CNN interview. In one post, Musk said, “A PhD in Econ from Harvard is a bad thing, not a good thing,” implying that Navarro’s education had made him out of touch with real-world results.
When another user praised Navarro’s explanation of the tariffs, Musk replied: “He ain’t built shit.” The blunt remark quickly gained attention online, especially as Musk has often supported Trump’s broader policies in the past.
Musk Points to Real-World Experience
Musk’s comments highlight a growing debate in Washington and Wall Street: Should trade policy be driven by academic theory or business experience?
While Navarro earned a doctorate in economics from Harvard, Musk has built multiple companies, including Tesla and SpaceX. The tech entrepreneur’s criticism suggests he values results over credentials.
A third post from Musk backed a quote from conservative economist Thomas Sowell, who once said, “In every disaster throughout American history, there always seems to be a man from Harvard in the middle of it.” Musk replied with a simple “Yup.”
Economic Impact of the Tariffs
The back-and-forth tariffs have already caused concern in financial circles. According to CNBC, U.S. markets dropped by over 2% in the 48 hours following the announcement. Tesla alone lost billions in market value.
Experts say the auto industry is especially at risk. Tariffs on Chinese-made parts could raise vehicle prices, reduce profit margins, and slow innovation. China’s reciprocal actions also make it harder for U.S. automakers to sell cars abroad.
Thomas Sowell, whose work Musk cited, has warned that tariffs may lead to a global trade war. In past writings, Sowell even suggested that poor tariff policy helped spark the Great Depression.
Tensions Within the Trump Inner Circle
The online clash comes amid new reports that Musk may step away from his advisory role within the Trump administration. According to POLITICO, Trump recently discussed Musk’s future with his inner circle.
While Musk criticized Navarro, he still voiced support for some White House efforts. He posted messages supporting Trump’s border policies and promoted his cryptocurrency work with DOGE, suggesting his split from Navarro may be personal rather than political.
As of this writing, neither the White House nor DOGE has responded to media requests for comment.
A Broader Debate on Trade
Musk’s remarks point to a wider split between academic economists and business leaders on how best to manage trade. While Navarro argues tariffs protect American jobs, critics say they do more harm than good by raising prices and creating global tension.
As Tesla, other companies, and the markets adjust to the new tariff rules, the debate is likely to grow louder.
