Trump holds together a fractured Cabinet as advisers quibble over tariff strategy

What may have been largely behind-the-scenes disagreements spilled into the open on Tuesday when Navarro addressed Department of Government Efficiency (DOGE) chief Elon Musk’s control of Tesla and his vested interest in barrier-free foreign trade.

Published: April 8, 2025 11:02pm

Members of Trump’s inner circle have begun to openly feud as the reciprocal tariffs prompt mixed reactions on the world stage. At the core of the division is messaging, namely whether to present the tariffs as a long-term revenue raiser or as part of a negotiating tactic to secure more favorable trade deals with other nations.

On the one hand, Treasury Secretary Scott Bessent appears to be the leader of the “making deals” camp while Commerce Secretary Howard Lutnick and economic advisor Peter Navarro are more bullish on the tariffs for their own merits.

What may have been largely behind-the-scenes disagreements spilled into the open on Tuesday when Navarro addressed Department of Government Efficiency (DOGE) chief Elon Musk’s control of Tesla and his vested interest in barrier-free foreign trade.

“We all understand in the White House (and the American people understand) that Elon's a car manufacturer. But he's not a car manufacturer — He's a car assembler,” Navarro said on CNBC. “In many cases, if you go to his Texas plant, a good part of the engines that he gets – which in the EV case is the batteries – come from Japan and come from China. The electronics come from Taiwan.”

“What we want — and the difference is in our thinking and Elon's on this — is that we want the tires made in Akron,” he went on. “We want the transmissions made in Indianapolis. We want the engines made in Flint and Saginaw. And we want the cars manufactured here.”

Musk's response was blunt: “Navarro is truly a moron. What he says here is demonstrably false,” Musk replied to an X post showing Navarro’s appearance. “Tesla has the most American-made cars. Navarro is dumber than a sack of bricks. By any definition whatsoever, Tesla is the most vertically integrated auto manufacturer in America with the highest percentage of US content.”

Leavitt: "Boys will be boys"

That episode was one of the first publicly visible signs of a fracture within the Trump White House and comes as Musk is set to depart from his role in May due to constraints from his status as a special government employee. The White House belittled the public spat on Tuesday, with White House press secretary Karoline Leavitt pointing to it as proof that the president considered alternative viewpoints when making decisions.

“These are obviously two individuals who have very different views on trade and on tariffs,” Leavitt told reporters. “Boys will be boys, and we will let their public sparring continue. And you guys should all be very grateful that we have the most transparent administration in history, and I think it also speaks to the President's willingness to hear from all sides, that he has people at the highest levels of this government, in this White House who have very diverse opinions on very diverse issues.”

Despite the apparent riff, the pro-deals camp seems to be winning the messaging argument, with Trump himself using much of his social media clout to update the public on trade negotiations with key partners. In a Tuesday Truth Social post, Trump touted a “great call” with acting South Korean President Han Duck-Soo, saying “[w]e talked about their tremendous and unsustainable Surplus, Tariffs, Shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we provide to South Korea.”

“In any event, we have the confines and probability of a great DEAL for both countries,” Trump added. “Their top TEAM is on a plane heading to the U.S., and things are looking good. We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

Nations lining up to negotiate

Trump’s announcement on Tuesday followed a Monday confirmation that the Japanese would soon send a delegation to negotiate its own deal with the United States following a call with Japanese Prime Minister Shigeru Ishiba.

Bessent, for his part, has been at the forefront of the messaging on making deals and has confirmed he would be a leading figure in the negotiations with Japan. As to China, the largest trading partner opting for a combative approach, Bessent insisted on Tuesday that the United States held the leverage.

“President Trump has maximum negotiating leverage, right here, right now. I think it would be a mistake for anyone to think otherwise,” he said on CNBC. “Many of our trading partners, they have queued up, and they have kept their cool. They have not escalated and they will get priority in the queue. I think it was a big mistake, this Chinese escalation, because you know they're playing with a pair of twos.”

Leavitt echoed Bessent’s messaging by highlighting that each deal would be unique to each country based on the circumstances of each negotiation. Notably, she doubled down on the unity of the Cabinet and insisted that all of the key officials involved in the tariff issue would be party to the negotiations.

“All options are on the table for each country, but again, these are going to be tailor-made deals. They are not going to be off-the-rack deals, as the President has called it, and he has directed his entire trade team to be part of this effort,” she said. “So that includes Secretary Bessent and our national economic director, Kevin Hassett. It also includes Secretary [Howard] Lutnick, Peter Navarro, the entire trade team, Jamison Greer, who was on the Hill today.”

“Everybody who was involved in this incredible fair, reciprocal trade agenda will continue to be involved in negotiating these deals,” she concluded.

On the congressional side, Trump is facing mounting backlash as Republican free-traders and Democrats alike fret over Trump’s unilateral action and the implications for American industry. Rep. Don Bacon, R-Neb., for instance has floated legislation to reclaim congressional authority over tariffs and has attempted to rally support for it. Bacon is generally regarded as a neoconservative, Trump-critic.

"We have a total of seven Republicans in the Senate," he told CBS News. "It's time that Congress restores its authorities here.” Trump has vowed to veto legislation from Sens. Maria Cantwell, D-Wash., and Chuck Grassley, R-Iowa, that would limit his ability to impose tariffs without senatorial assent.

"If passed, this bill would dangerously hamper the President's authority and duty to determine our foreign policy and protect our national security," the White House confirmed in a statement of administrative policy.

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