Former Canadian deputy Prime Minister (and Finance Minister), Chrystia Freeland, who is currently vying for leadership of the Liberal Party, has made a bold statement regarding potential tariffs imposed by President Donald Trump on Canadian goods. In response to Trump’s proposed 25% tariff on Canadian imports, Freeland has suggested that Canada retaliate with a 100% tariff on all Tesla vehicles, as well as U.S. wine, beer, and spirits.
Trump’s tariffs, set to go into effect on February 1, are aimed at pressuring Canada and Mexico to enhance border security and crack down on the smuggling of fentanyl into the United States. In light of these measures, Freeland is advocating for a strong response to protect Canadian workers and businesses.
Tesla vehicles have gained significant popularity in Canada, with the electric car manufacturer set to increase prices by up to $9,000 due to foreign exchange rates. It seems counterintuitive for Freeland, who has been a vocal advocate for climate change initiatives, to target Tesla with such a high tariff.
It’s worth noting that there are numerous other U.S. automakers operating in Canada, many of whom also produce vehicles within the country. This raises questions as to why Freeland has singled out Tesla for such steep tariffs. Some speculate that her choice to target Tesla may be a strategic move to garner attention or provoke a response from CEO Elon Musk.
As the situation unfolds, it remains to be seen how Tesla and other affected parties will respond to Freeland’s proposal. The outcome of this trade dispute could have significant implications for the automotive industry and international trade relations between Canada and the United States.