Canada retaliates against Trump and Elon Musk: Is Tesla facing a 100% tariff?

A Canadian candidate for Prime Minister, Chrystia Freeland, has proposed the implementation of a 100% tariff on Tesla vehicles in response to the tariffs imposed by the United States on Canadian goods.

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This proposal comes after President Donald Trump announced a 25% tariff on most Canadian products, except for energy, which has a 10% tariff.

Freeland, who was Deputy Prime Minister before announcing her candidacy, argues that the tariff on Tesla aims to pressure certain American sectors that are relevant to the White House.

Punish Elon Musk for laughing at them?

“We are going to go after the interested Americans who import to the White House,” declared Freeland, thus seeking to strengthen Canada’s position in this trade dispute. And let’s not forget that Elon Musk stated that Canada is not even a real country.

The proposal has generated mixed reactions. But overall, people in Canada support the proposal, reflecting discontent with the trade policies of the United States. In fact, Canada has already taken actions similar to those of the United States, imposing tariffs on American electric vehicles following the start of the trade dispute.

Canada has a minimal production of electric vehicles (EV) and much of the current supply comes from the United States. With the new 25% tariff on those vehicles, Freeland’s proposal suggests opening the Canadian market to EVs of Chinese origin.

This could diversify the availability of vehicles within the country and facilitate the transition to emission-free transportation, especially in a context where it is expected that the demand for electric vehicles may slow down due to changes in government incentives.

While the measure could benefit competition, it is speculated that Tesla could leverage its production capacity in China to evade certain tariffs, although the manufacturer would still face tough competition from other established Chinese brands in the market.

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Ultimately, Canada’s decision not only seeks to protect its economic interests but also to redefine its trade relationship with the United States and explore new opportunities in the global electric vehicle market.