According to media reports, Canadian Prime Minister candidate Chrystia Freeland has proposed imposing a 100% tariff on imported Tesla vehicles as part of broader retaliatory tariffs against the U.S., in response to the 25% tariff the U.S. has imposed on Canadian goods.
Chrystia Freeland recently resigned from her position as Deputy Prime Minister of Canada to run for the leadership of the Liberal Party, positioning herself as a potential successor to current Prime Minister Justin Trudeau.
Freeland stated, "We need to target American stakeholders who have influence in the White House. I propose a 100% tariff on all Tesla vehicles. I also call on all countries affected by Trump's tariff policies to join us. Our retaliatory tariffs will be directed at specific supporters of Trump."
The proposal has sparked mixed reactions. Some argue that directly targeting Tesla is unfair, while others believe it is justified, pointing out that Tesla CEO Elon Musk helped facilitate Trump's election, yet Trump has now turned his back on the USMCA (United States-Mexico-Canada Agreement) he signed just a few years ago.
Recently, U.S. President Donald Trump confirmed a 25% import tariff on all Canadian goods except energy, which will be subject to a 10% tariff. Additionally, all goods imported from Mexico will face a 25% tariff.
In response, the Canadian government is preparing to impose a 25% tariff on $155 billion worth of U.S. imports, with the first batch of $30 billion in goods set to be taxed immediately, effective March 4, 2025. If the U.S. implements further tariff measures, Canada may expand its countermeasures. The Canadian government has stated that this is not the outcome they desire, but they must respond to protect Canada's economy and jobs.
Canadian Finance Minister Dominic LeBlanc also announced that if the U.S. continues to impose unreasonable tariffs on Canada, the Canadian government plans to introduce additional countermeasures targeting $125 billion worth of U.S. imports. A list of affected goods has already been published, including electric vehicles, fruits and vegetables, beef, pork, dairy products, electronics, steel, aluminum, trucks, and buses. There will be a 21-day consultation period for public feedback.
