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Peter Navarro crafts Trump’s tariff strategy, but Elon Musk isn’t sold.

Christopher Yarborough by Christopher Yarborough
May 5, 2025
in Economics
Navarro

Peter Navarro presented his tariff strategy to Donald Trump through a 30-page document titled “The Case for Fair Trade” during 2020. Navarro suggested applying trade tariffs to nations which maintained significant trade deficits with the United States and imposed elevated trade barriers particularly against China, India, the EU, Vietnam, Thailand, Taiwan, Japan and Malaysia. Navarro implemented his blueprint through the trade chapter of Project 2025 which emerged from the GOP policy guide developed by the Heritage Foundation as he advocated for “nonreciprocal tariffs” and “onshoring” production despite facing opposition from Wall Street and Silicon Valley.

The Trump administration imposed “liberation day” tariffs that replicated Navarro’s original target list by imposing 46% duties on Vietnam alongside 20% duties on the EU and various other nations including Indonesia and South Korea and Switzerland. Navarro expresses views about China and the WTO that align with Trump because he developed his stance through his books and previous professional experience. Navarro played a crucial role in creating the trade wars of Trump’s first presidential term but faced contempt charges for his involvement in January 6 which resulted in a four-month prison sentence in 2024 before delivering a defiant speech at the GOP convention.

His prison time has faced criticism from multiple individuals. Trump 1.0 alumnus Marc Short appeared on CNN to express doubts about using an ex-con for trade policy while pointing out the “reciprocal” label was an exaggeration because tariffs do not match foreign trade rates. Navarro who studied economics at UC Irvine and served as a Democratic candidate in the 1990s reached age 75 and co-authored “Death by China” with Peter Kuo in 2011 which became a 2012 film that attracted Jared Kushner to join Trump’s 2016 presidential campaign. His books included a fictional expert named Ron Vara which he presented as a real expert through anagrams.

Tesla’s billionaire founder Elon Musk rejects the entire concept. The billionaire owner of Tesla attacked Navarro’s Harvard PhD through X on Saturday by calling it “ego over brains” and highlighting his limited practical experience. The Fox interview on Sunday showed Navarro dismissing the criticism by claiming Musk protects Tesla’s imported components but he didn’t indicate any disagreement between them. During his CNBC appearance on Tuesday Navarro criticized Musk by stating he only assembles products rather than manufacturing them which set off another round of criticism. Musk responded by labeling Navarro a “dumber than a sack of bricks” moron while showcasing Tesla’s extensive U.S.-based manufacturing operations. White House spokesperson Karoline Leavitt dismissed the argument between Trump and Musk by stating that “boys will be boys since Trump listens to every perspective.”

Tags: Elon MuskPeter Navarro
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