Canada:Canada’s electric vehicle (EV) adoption is accelerating faster than in the U.S., with nearly 17% of new cars sold in the third quarter of 2024 being fully electric, compared to just 8% south of the border.
A trade conflict between Canada and the U.S. is intensifying, and Tesla has become a focal point of the dispute. Chrystia Freeland, former Canadian finance minister and a key contender for the Liberal Party leadership, has proposed a striking countermeasure: imposing 100% tariffs on select U.S. goods, including Teslas, in direct response to President Trump’s proposed tariffs on Canadian and Mexican imports.
Speaking with The Canadian Press, Freeland outlined her stance. “We must be strategic, calculated, and precise,” she stated. This move isn’t just economic retaliation—it’s also politically charged. Tesla’s involvement stems from CEO Elon Musk’s financial and operational ties to Trump, a point Freeland didn’t hesitate to emphasize. “We need to examine who is backing Trump and determine how we can ensure they bear the cost of targeting Canada with tariffs.”
Tesla’s vehicles sold in Canada are largely manufactured in the U.S. and China. Implementing tariffs could significantly raise prices, potentially pushing Canadian EV buyers toward other automakers. This would pose a considerable challenge to Tesla, which dominates Canada’s EV market, with the Model Y and Model 3 ranking as the country’s best-selling electric vehicles.
Freeland, who stepped down from her finance minister role last year partly due to disagreements over handling Trump’s economic tactics, is using this issue as a defining moment in her leadership bid. “A key characteristic of the Trump administration is its reliance on uncertainty,” she noted. “There are reports of internal debates within the U.S. administration, so we should use that to our advantage. We must lay our cards on the table and make it clear—if they strike at us, we will strike back.”
The stakes are rising. Canada’s EV adoption continues to outpace the U.S., driven in part by Quebec’s aggressive EV incentives, which have bolstered Tesla’s dominance. However, this market leadership also makes Tesla particularly vulnerable to tariffs.
As Trump’s policies send shockwaves across international trade, Canada’s response is becoming more assertive. Diplomatic negotiations are giving way to direct economic countermeasures, with Tesla emerging as a primary target in the growing trade battle.
