10 Feb: NDP Leader Jagmeet Singh has proposed imposing a 100 per cent tariff on Tesla vehicles in response to ongoing trade disputes between Canada and the United States. Singh emphasized that this measure should remain in place as long as trade tensions persist.
In a statement released Monday, Singh also pledged that an NDP-led federal government would reinstate Ottawa’s electric vehicle (EV) incentive program, which recently ran out of funding. The Liberal government had been offering up to $5,000 in rebates for new EV purchases since May 2019 but announced last month that the funds had been depleted.
The NDP’s decision to single out Tesla stems from its CEO, Elon Musk’s close ties to the administration of U.S. President Donald Trump, whose government has threatened heavy tariffs on Canadian imports. An NDP spokesperson confirmed that Tesla models would be excluded from the revived rebate program until the trade dispute is resolved.
Tesla vehicles, primarily the Model Y and Model 3, comprised 20 per cent of the over 215,000 EV rebates issued in 2024, according to Transport Canada. Higher-end Tesla models were already ineligible for the rebate, as only vehicles with a base price under $55,000 qualified.
Singh further committed to increasing the federal EV rebate to $10,000 for Canadian-manufactured electric vehicles.
“Buying a car is a significant investment, and Canadians want the best possible deals—especially amid rising costs,” Singh stated. “If you’re making a purchase, choose Canadian-made vehicles to support local auto workers and jobs.”
Currently, the only Canadian-produced electric vehicles are the Dodge Charger Daytona and the Chrysler Pacifica plug-in hybrid, which together accounted for just 0.3 per cent of all federally subsidized EV purchases in 2024. The Dodge Charger only recently entered production in Windsor, Ontario.
The EV incentive program saw record demand last year, distributing over $1 billion in rebates, with uptake increasing by more than 50 per cent from 143,124 vehicles in 2023. Quebec led the country in rebate claims, with buyers in the province securing over $618 million in incentives.
Meanwhile, some Liberal leadership hopefuls have also vowed to restore the EV rebate initiative. Karina Gould has proposed doubling the incentives while including gas-hybrid models, whereas Mark Carney suggests limiting the rebates to low- and middle-income Canadians. Deputy Prime Minister Chrystia Freeland has also supported targeting Tesla with tariffs.
