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Chrystia Freeland says Canada should target Elon Musk's Tesla in a tariff fight

OTTAWA — Liberal leadership candidate Chrystia Freeland is calling on Ottawa to target Tesla vehicles and U.S.
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Elon Musk arrives to speak at an indoor Presidential Inauguration parade event in Washington, Monday, Jan. 20, 2025. THE CANADIAN PRESS/AP/Matt Rourke

OTTAWA — Liberal leadership candidate Chrystia Freeland is calling on Ottawa to target Tesla vehicles and U.S. alcohol as part of its tariff retaliation package to send a message that an attack on Canadian trade would not be cost-free for Trump's allies.

In an interview with The Canadian Press, Freeland said there should be a 100 per cent tariff on all U.S. wine, beer and spirits, and on all Teslas.

"We need to be very targeted, very surgical, very precise," Freeland said. "We need to look through and say who is supporting Trump and how can we make them pay a price for a tariff attack on Canada."

The move would target Tesla CEO Elon Musk and other power brokers in Trump's orbit, along with powerful lobby groups such as Wisconsin dairy farmers.

Tesla's chief financial officer warned on an earnings call earlier this week that tariffs could hurt the company's profitability.

Freeland said Canada needs to deliver the message to Trump's closest supporters that if you hit Canada, it will hit back — and it will hurt.

"One of the characteristics of the Trump administration is they like to traffic in uncertainty," she said. "There are lots of reports about there being internal debates in the U.S. (administration), so let's use that to our advantage. And let's put some cards on the table and be very clear that if they hit us, we will hit them back."

Trump suggested on Thursday that he still plans to go ahead with his plan to hit Canada and Mexico with 25 per cent across-the-board tariffs on Saturday.

This report by The Canadian Press was first published Jan. 31, 2025.

Kyle Duggan, The Canadian Press

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