Peter Navarro, the 75-year-old economist considered a key shaper of the U.S. hard-line trade line, has rejoined Donald Trump after he was released from prison for contempt of Congress. With previous service on the National Trade Council and in the Office of Manufacturing Policy during Trump’s first term, Navarro remains a staunch advocate for tariffs as a tool to revitalize American industry.

This time, however, he comes into direct conflict with another prominent man in the presidential circle, Elon Musk. The Tesla CEO and head of the government’s Efficiency Caucus has called for full liberalization of US-EU trade, disagreeing with Trump’s aggressive tariff policies. Musk went on to make pointed posts on X, mocking Navarro’s academic parchments and criticizing him as an “ego man.”

Summit clash on trade

Controversies came to a head after Trump’s sweeping announcements of new tariffs hit the stock market and sparked uncertainty in the global economy. Navarro, defending the measure, responded to CNBC that Musk “is not a manufacturer, but an assemblyman,” implying that Tesla depends on third-country components. For his part, Musk mocked Navarro’s PhD and declared himself a proponent of zero protectionism.

The tension illustrates the two lines currently clashing within the Trump staff: Navarro’s old-school economic nationalism and a more liberal, globalist approach represented by Musk.

Navarro back on the center stage

Peter Navarro, who has served as a Trump adviser since 2017, was sentenced in 2024 to four months in prison for contempt of Congress for refusing to testify before the committee on the January 6 attack. Despite the jail time and backlash, Trump restored him to his role, praising him for his pro-American vision.

With a long track record of academic research, studies at Tufts and Harvard Universities, and writing on US-China relations, Navarro remains fully committed to the idea of protected trade. His confrontation with Musk highlights that trade will again be a battleground for infighting in the Republican camp ahead of the 2028 election.