Liberal leadership candidate Chrystia Freeland has proposed a 100 per cent tariff on Tesla vehicles and U.S. wine, beer, and spirits as part of Canada’s response to U.S. trade measures. Her strategy aims to target key Trump allies and make it clear that attacks on Canadian trade will come at a cost.
In an interview with The Canadian Press, Freeland emphasized the need for a strategic, calculated response to U.S. tariffs, focusing on sectors and individuals closely aligned with the Trump administration.
“We need to be very targeted, surgical, and precise,” Freeland stated. “We need to identify key supporters of Trump’s policies and ensure they face consequences for imposing tariffs on Canada.”
Freeland’s proposal would specifically impact Tesla CEO Elon Musk and powerful U.S. lobby groups, including Wisconsin dairy farmers. The move comes after Tesla’s Chief Financial Officer warned that U.S. tariffs could significantly impact the company’s profitability.
The proposed tariffs would serve as a direct economic countermeasure, designed to send a clear message to Trump’s allies that trade attacks on Canada will not go unanswered.
Freeland underscored the importance of leveraging uncertainty within the U.S. administration to Canada’s advantage. She suggested that Canada should strategically escalate its response to deter further economic aggression.
“One of the defining traits of the Trump administration is its reliance on uncertainty and unpredictability,” she said. “We need to use that to our advantage by making it clear that if they hit us, we will hit them back.”
Despite backlash, Trump reiterated on Thursday that his administration remains committed to a 25 per cent across-the-board tariff on Canada and Mexico, scheduled to take effect Saturday.
With tensions escalating, Canadian officials are now weighing additional retaliatory measures to protect national economic interests and counter Trump’s trade policies.