On Monday, NDP Leader Jagmeet Singh was calling for a 100% tariff on Tesla electric vehicles. There’s only one problem, he’s a bit late to the tariff party — by at least four months.
That’s because Canada already applies that same level of trade tax — not just on Tesla. Effective Oct. 1, 2024 the federal government imposed a 100% tariff on Chinese-made EVs in 2024, targeting brands like BYD and Nio, as well as Chinese-made versions of Western automakers’ models, including Tesla
The move was designed to protect Canada’s growing EV and battery manufacturing industry from what Prime Minister Justin Trudeau called “unfair competition” from Chinese state-subsidized firms.
Now, Singh is calling for additional tariffs on Tesla, which is already subject to those tariffs when exporting from there. His proposed penalties, announced Monday in Windsor, Ont., come as part of an NDP campaign to counter US president Donald Trump’s threats of tariffs on all Canadian goods.
Singh also pledged to reinstate and double the federal EV rebate to $10,000 — but only for buyers who choose Canadian-made vehicles.
Observers said Singh’s attack on Musk is part political and part economic. Speaking to reporters, he accused Tesla’s eccentric CEO of “attacking our country” and vowed to retaliate if Trump imposes tariffs.
“Let’s shut him down. We have the tools, and we should be ready to use them,” Singh said, suggesting Canada should also withhold critical minerals needed for EV batteries from Musk’s companies.
"So Elon Musk thinks he can tweet off whatever he wants. Yeah, we're going to put a tariff on him. I want that to be something that impacts him."
NDP leader Jagmeet Singh
Yet, the NDP’s proposal raises practical concerns:
Apart from the fact that Tesla vehicles made in China already face 100% tariffs in Canada, the federal government actively subsidizes Tesla purchases through consumer EV rebates, including the now-paused Incentives for Zero-Emission Vehicles (iZEV) program, which offered up to $5,000 per vehicle.
The federal government has provided billions in subsidies to US and European battery manufacturers, including Volkswagen, Stellantis, and Honda to encourage domestic EV production which raises the prospect of a huge double standard and accusations of outright hypocrisy.
Singh’s proposal to double the federal EV rebate to $10,000 for Canadian-made vehicles may be an attempt to boost domestic production, but critics argue it risks making EVs more expensive for consumers by limiting choice.
While Tesla dominates EV sales in Canada, the country has no mass-market homegrown EV manufacturer, meaning most eligible vehicles would come from US or European automakers with Canadian plants.
"Elon Musk has been very loud. Very vocal attacking our country. We're not going to let that stand. So if you are going to take a shot at us, we're going to fight back," Singh told reporters.
"So Elon Musk thinks he can tweet off whatever he wants. Yeah, we're going to put a tariff on him. I want that to be something that impacts him."
