Canada’s trade war with the United States has some economists pondering whether the federal government should ease or lift its 100 per cent tariff on Chinese electric vehicles, a move some say could spur EV purchases and deliver a blow to Elon Musk’s Tesla.
Automakers, however, say the tariffs are critical to protecting this country’s nascent EV industry.
Canada followed the U.S. in slapping the tariffs on Chinese EVs last fall, while also putting a 25 per cent surtax on imports of steel and aluminum products from China.
That was before Donald Trump became U.S. president and hit Canada with a storm of tariffs, including on steel and aluminum used in vehicle manufacturing.
Public opinion has also soured on Trump adviser and tech billionaire Musk, whose Teslas are the top-selling EVs in Canada. Politicians have mused about targeted actions against Tesla, with NDP Leader Jagmeet Singh and former Liberal leadership candidate Chrystia Freeland both pitching 100 per cent tariffs on the vehicles.
Julian …