Canadian PM Candidate Proposes Retaliatory Tariffs Targeted At Elon Musk—And People Are So Here For It

Chrystia Freeland, who resigned last month as Justin Trudeau’s deputy and finance minister and is running to be the next leader of the Liberal Party and prime minister of Canada, proposed "targeted" retaliatory tariffs against the U.S. that would target President Donald Trump's allies, including billionaire Elon Musk.

Freeland has pledged precise and targeted retaliation against the 25 percent tariff Trump has imposed on all steel imports. She warned that if necessary, the country would “inflict the biggest trade blow that the United States has ever endured.” These tariffs would in part target automotive company Tesla—a jab at Musk, who is its CEO.

She said:

"Our retaliation is going to be a lot more surgical than that. We are going to go after American stakeholders who matter to the White House. I have proposed a 100% tariff on all Teslas. I am calling on all the countries that are affected by this tariff to join us, and our retaliation will target specific Trump constituencies.”

You can hear what she said in the video below.

Freeland's comments followed Trump's decision to eliminate exceptions and exemptions from his 2018 steel tariffs, ensuring that all steel imports are now subject to at least a 25 percent tax. Additionally, he increased aluminum tariffs from 10 percent to 25 percent.

Canada, the top supplier of steel to the U.S., has strongly opposed the move. Freeland emphasized that these sweeping tariffs would have widespread consequences, warning Americans that "the tariffs the U.S. is threatening Canada with are across the board, and they're going to hurt you."

Her threat comes as Tesla struggles with declining global sales, hampered by tariffs and Musk's political controversies.

The year began on a challenging note for Tesla, as the company reported its first annual decline in deliveries for 2024. The setbacks continued into January, with troubling signs emerging from key markets.

For instance, in France, Tesla sales plummeted by 63% compared to the previous January, while Germany saw a 59.5% drop in the same period. The decline in Germany, marking Tesla’s weakest January since 2021, comes amid growing backlash against Musk over his support for the far-right Alternative for Germany (AfD) party.

Many appreciated Freeland's remarks.

Last week, Freeland described Trump's actions as a "betrayal," saying his decision to impose tariffs on the U.S.' closest trading partner constitutes "an act of economic warfare.”

Freeland noted that Canadians are "already" boycotting American goods in response. She said that "the path the U.S. is on right now is a lose-lose path and at the end of the day, you cannot defy the laws of economics."