Claim:

In February 2025, Canada proposed placing a 100% tariff on Teslas.

What’s True

Chrystia Freeland — a Liberal Party member, former finance minister and former deputy prime minister running to lead Canada amid Prime Minister Justin Trudeau’s resignation — proposed placing a 100% tariff on Teslas. Canada already has a 100% tariff on Chinese-made electric vehicles, which may impact some Tesla models, that went into effect in October 2024.

What’s False

Trudeau, who is still prime minister in a caretaker capacity until a new one is elected, has not imposed 100% tariffs on Teslas as of this writing. He did announce a 25% tariff on American electric vehicles, which includes U.S.-made Tesla models, in response to U.S. President Donald Trump’s announced 25% tariffs on Canadian goods. Those plans were paused. Trudeau has not commented publicly on Freeland’s proposal.

What’s Undetermined

It’s unclear if Freeland still supports a 100% tariff on Teslas after the United States and Canada paused tariff plans for 30 days on Feb. 3, 2025.

In early February 2025, social media users spread a rumor that Canada proposed imposing a 100% tariff — a tax on imports — on Teslas. 

Posts on X, Facebook and Bluesky with thousands of views claimed Canada was either considering, threatening or planning a 100% tariff on Teslas (archived, archived and archived.) 

Canada is considering 100% tariffs on Teslas. 🔗: www.businesstoday.in/world/canada…

[image or embed]

— Seth Abramson (@sethabramson.bsky.social) February 2, 2025 at 9:50 PM

Some posts also claimed Canada announced or is actually implementing a 100% tariff on Teslas (archived and screenshotted). 

While a prominent Canadian politician running to lead the country proposed a 100% tariff on Teslas, the current prime minister, Justin Trudeau, had not announced a 100% tariff on Teslas nor had he publicly commented on this idea as of this writing. Canada does have a 100% tariff on Chinese-made EVs that went into effect on Oct. 1, 2024, which likely impacts Tesla models made in Shanghai, China. Therefore, we rate this claim a mixture of true, false and undetermined. 

While Trudeau had previously announced a 25% tariff on American goods, including electric vehicles, in response to U.S. President Donald Trump’s Feb. 1, 2025, announcement he would place a 25% tariff on Canadian goods, Trudeau then said, in a Feb. 3 X post, that the two leaders were pausing any tariff plans for 30 days after they spoke over the phone. 

Candidate for prime minister proposed 100% tariff

As first reported by The Canadian Press, former deputy prime minister and finance minister of Canada Chrystia Freeland proposed a 100% tariff on Teslas in retaliation for Trump’s announcement of a 25% tariff on Canadian goods. Freeland also posted a video on her Facebook page calling for 100% tariffs on “all Tesla vehicles and U.S. wine, beer and spirits.” 

Freeland, a member of Parliament from the Liberal Party of Canada, is running to replace Prime Minister Justin Trudeau, who resigned on Jan. 7, 2025 and currently leads the country in a caretaker capacity until Canada elects a new leader. Freeland resigned from Trudeau’s cabinet shortly before he did, sending shockwaves through Canadian politics. She is considered a serious candidate to replace him; political commentators dubbed her “minister of everything” due to her work in Trudeau’s government. 

In Canada, the leader of the party who has the most members in Parliament usually becomes the prime minister. Should Freeland win leadership of the Liberal Party — elected by voters registered as Liberals — she will almost certainly become prime minister of Canada on March 9, 2025, at least until Parliament resumes business on March 24, 2025. While a general election in Canada is scheduled for Oct. 24, 2025, rival parties are reportedly making moves to force a general election as soon as Parliament returns. 

Polling suggests the Conservative Party has a wide lead over the Liberal Party in the upcoming election, meaning Freeland could have only weeks on the job. The leader of Canada’s Conservative Party has also condemned Trump’s tariffs, but has not publicly supported Freeland’s suggestion and instead suggested focusing on improving trade within Canada. 

Thus, it is possible for Freeland to become Canada’s prime minister long enough for her to impose 100% tariffs on Teslas next month, but it’s hard to say how long those tariffs would stay in effect without support from the Conservative Party. 

It is also not clear if Freeland still supports a 100% tariff on Teslas given the current pause on tariff plans. Snopes could not find any public comments from Trudeau regarding whether he supports a 100% tariff on Teslas. We reached out to Freeland, Trudeau and Teslam and will update this fact check if we hear back. 

Canadian tariffs impacting Tesla

The 25% tariff Canada announced — now paused for 30 days — would have been imposed on a variety of goods, including American-made electric vehicles. According to American University’s 2024 “Made in America Auto Index,” which uses data from the National Highway and Transportation Administration, at least six Tesla models are largely made in the United States. Tesla’s website also states that many of its cars are made in California and Texas, which means they would have likely been subject to the tariff.

Canada already has a 100% tariff on Chinese-made electric vehicles, which went into effect on Oct. 1, 2024. According to Tesla’s website, its factory in Shanghai, China, produces Model 3 and Model Y Teslas, so it’s likely Canada’s 100% tariff on Chinese-made EVs is impacting some Tesla production. 

The 100% tariff on Chinese-made electric vehicles is the only 100% tariff imposed by Canada impacting Tesla as of this writing. A search for “Tesla” on the Department of Finance Canada website returned no results about tariffs, suggesting Canada has no tariffs explicitly for Teslas as of this writing. 

We reached out to Tesla for comment and we will update this story if we hear back. 

Sources

“2024 Made in America Auto Index.” American.edu, 2024, kogod.american.edu/autoindex/2024. Accessed 3 Feb. 2025.

ABC News. “Canadian Prime Minister Justin Trudeau Announces Retaliatory Tariffs on U.S.” YouTube, 1 Feb. 2025, www.youtube.com/watch?v=q1qEaCQa6_w. Accessed 3 Feb. 2025.

Department of Finance Canada. “List of Products from the United States Subject to 25 per Cent Tariffs Effective February 4, 2025.” Archive.ph, Government of Canada, 2 Feb. 2025, archive.ph/iPtbJ. Accessed 3 Feb. 2025.

—. “Search Department of Finance Canada – Canada.ca.” Canada.ca, www.canada.ca/en/department-finance/search-finance.html?q=teslas&wb-srch-sub=. Accessed 3 Feb. 2025.

—. “Surtax on Chinese-Made Electric Vehicles.” Canada.ca, Government of Canada, 26 Aug. 2024, www.canada.ca/en/department-finance/news/2024/08/surtax-on-chinese-made-electric-vehicles.html.

Duggan, Kyle. “Chrystia Freeland Says Canada Should Target Elon Musk’s Tesla in a Tariff Fight.” Thecanadianpressnews.ca, 31 Jan. 2025, www.thecanadianpressnews.ca/politics/chrystia-freeland-says-canada-should-target-elon-musks-tesla-in-a-tariff-fight/article_f14d99ac-f7b9-51fb-a137-0893d48a5845.html. Accessed 3 Feb. 2025.

Elections Canada. “The Electoral System of Canada – Elections Canada.” Elections.ca, 2011, www.elections.ca/content.aspx?section=res&dir=ces&document=part1&lang=e. Accessed 3 Feb. 2025.

Freeland, Chrystia. “If Donald Trump Slaps 25% Tariffs on Canadian Goods, We Must Hit Back—Dollar for Dollar—Starting with 100% Tariffs on All Tesla Vehicles and U.S. Wine, Beer, and Spirits. We Must Protect Canadian Workers and Businesses. Chrystiafreeland.ca | Chrystia Freeland.” Facebook.com, 2025, www.facebook.com/reel/1963680560821938. Accessed 3 Feb. 2025.

Liberal Party of Canada. “Liberal Party of Canada Announces Date of Leadership Vote | Liberal Party of Canada.” Liberal.ca, 30 Jan. 2025, liberal.ca/liberal-party-of-canada-announces-date-of-leadership-vote/. Accessed 3 Feb. 2025.

“Poilievre Outlines 7-Point Response to Trump’s Incoming Tariffs.” CBC, 2 Feb. 2025, www.cbc.ca/player/play/video/9.6632608. Accessed 3 Feb. 2025.

Tesla. “Manufacturing.” Tesla, 2024, www.tesla.com/manufacturing. Accessed 3 Feb. 2025.

Trudeau, Justin. “I Just Had a Good Call with President Trump. Canada Is Implementing Our $1.3 Billion Border Plan — Reinforcing the Border with New Choppers, Technology and Personnel, Enhanced Coordination with Our American Partners, and Increased Resources to Stop the Flow of Fentanyl. Nearly 10,000 Frontline Personnel Are and Will Be Working on Protecting the Border. In Addition, Canada Is Making New Commitments to Appoint a Fentanyl Czar, We Will List Cartels as Terrorists, Ensure 24/7 Eyes on the Border, Launch a Canada- U.S. Joint Strike Force to Combat Organized Crime, Fentanyl and Money Laundering. I Have Also Signed a New Intelligence Directive on Organized Crime and Fentanyl and We Will Be Backing It with $200 Million. Proposed Tariffs Will Be Paused for at Least 30 Days While We Work Together.” X.com, 3 Feb. 2025, x.com/JustinTrudeau/status/1886529228193022429. Accessed 3 Feb. 2025.