United States President Donald Trump has reaffirmed his commitment to his tariff plan, even as global markets plummet.
However, signs of division among Trump’s aides are emerging. Key ally Elon Musk publicly clashed with trade adviser Peter Navarro on Saturday, while others have presented differing perspectives.
Here’s a breakdown of recent developments:
What happened between Musk and Navarro?
On Wednesday, Trump announced sweeping tariffs affecting most of America’s trading partners. This marked a significant departure from decades of U.S. trade policy, drawing criticism and concern from economists and targeted countries.
In the aftermath, the three major U.S. stock indices—the Dow Jones Industrial Average, S&P 500, and Nasdaq—dropped by more than 5 percent over the past week, marking the largest stock market decline since the COVID-19 pandemic in 2020.
Peter Navarro, a longtime Trump aide and senior trade and manufacturing adviser, defended the tariffs in a CNN interview on Thursday. “The market will find a bottom soon, and from there, we’re going to have a bullish boom. The Dow will hit 50,000 during Trump’s term,” Navarro said. As of Monday, the Dow Jones stood at 38,314 before trading began.
After an X user shared a clip of Navarro’s CNN interview and referenced his Harvard doctorate, Musk, who owns the platform, responded: “A PhD in Econ from Harvard is a bad thing, not a good thing.”
The first phase of the new tariffs—10 percent levies on countries including the United Kingdom, Australia, Argentina, and Saudi Arabia—took effect on Saturday. Higher levies, which Trump calls reciprocal tariffs, are set to take effect on Wednesday against countries like China and India.
What did Musk say about tariffs on Europe?
Musk’s criticism of Navarro wasn’t his only recent comment on tariffs. On Saturday, Musk—who oversees the Department of Government Efficiency (DOGE), tasked by Trump with reducing government spending—joined a videoconference with Italian Deputy Prime Minister Matteo Salvini, leader of the far-right League party.
During the conversation, Musk expressed hope for “a zero-tariff situation” between the U.S. and Europe, despite Trump’s 20 percent tariffs on the European Union. “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,” Musk said.
Musk, the world’s richest man and CEO of SpaceX and Tesla, has faced setbacks for his companies recently. In Europe, Tesla’s sales plunged by 49 percent in January and February compared to the same period in 2024, according to a March 25 report by the European Automobile Manufacturers’ Association. Tesla’s share price has also dropped to about half its December value.
How has Navarro responded?
In a Fox News interview on Sunday, Navarro addressed Musk’s comments on European tariffs. “It was interesting to hear Elon Musk talk about a zero-tariff zone with Europe. He doesn’t understand that,” Navarro said. “The thing that I think is important about Elon to understand is he sells cars. That’s what he does,” he added, implying Musk’s remarks were tied to his business interests.
What had Musk said earlier about tariffs?
Last month, Tesla warned the U.S. government that tariffs could harm electric vehicle companies if Trump’s tariff targets impose their own levies on American products. In an unsigned letter to U.S. Trade Representative Jamieson Greer, Tesla stated: “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.” The company added, “Past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”
On March 26, Trump imposed 25 percent tariffs on car imports and certain automobile parts. In response, Musk wrote on X: “Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”
Are there other signs of splits within Team Trump?
Commerce Secretary Howard Lutnick told CBS News on Sunday that the 10 percent baseline tariffs will “stay in place for days and weeks,” and the higher reciprocal tariffs would also take effect. However, Treasury Secretary Scott Bessent told NBC’s Meet The Press that more than 50 countries had reached out to Washington for negotiations to reduce the levies. “The market consistently underestimates Donald Trump,” Bessent said in response to the market crashes.
Also on Sunday, CNN anchor Jake Tapper asked Agriculture Secretary Brooke Rollins whether the tariffs are here to stay, as Trump and Lutnick have stated. Rollins did not directly answer the question.
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