Canada's Tesla Tariff War: Musk Targeted in Trade Dispute
https://www.nbnw.org/news/trump-slaps-massive-tariffs-on-mexico-china-and-canada
Canada's EV adoption rate is high as compared to the US, as 17% of new cars that are fully electric are being sold as compared to the US, which is just 8%. With leading sales of the Model Y and Model 3, Tesla is currently dominating Canada’s electric vehicle market. Due to tariffs that are imposed, they could now disrupt automakers. The tariff standoff between the US and Canada is creating a Canada-US trade war. Former Canada’s finance minister and current Liberal Party leadership has slapped 100% tariffs on selected American goods, including Tesla, in response to Trump’s threatened tariffs on Canadian and Mexican imports.
Freeland cleared her intentions during an interview with The Canadian Press. “We need to be very targeted, very surgical, and precise.” She said. The US president said that this step is taken due to concern regarding immigration and drug trafficking, the main reason on which he was elected. Along with Canada and Mexico's response to this tariff, even China responded and added it would take “necessary countermeasures to defend legitimate rights and interests.”
The White House said, “Today’s tariffs announcement is necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States.” According to Trump’s economic vision, a tariff is a domestic tax on goods as they enter the country, proportional to the value of the import. According to Trump, this will increase tax revenue, protect jobs, and help in growing the US economy.
