Singh promises 100% tariffs on Tesla, revival of electric vehicle incentive program

OTTAWA — NDP Leader Jagmeet Singh says Canada should charge 100 per cent tariffs on Tesla vehicles for as long as the trade war with the United States continues.

In a news release issued Monday, Singh said an NDP federal government would also revive Ottawa’s incentive program for electric vehicle purchases.

Since May 2019, the Liberal government has provided buyers with up to $5,000 off the cost of a new electric vehicle — but last month it said the funding for the program had run out.

The NDP is singling out Teslas because Tesla CEO Elon Musk is a prominent figure in the administration of U.S. President Donald Trump, which has threatened to impose steep tariffs on Canadian imports.

An NDP spokesperson said that under an NDP government, the rebate would not apply to Tesla vehicles as long as the trade war with the U.S. continues.

Tesla vehicles — the Model Y and Model 3 — accounted for one in five of the more than 215,000 rebates issued for electric vehicles in 2024, Transport Canada data shows.

Some more expensive Tesla models were ineligible for the rebate, which excluded vehicles with a manufacturer’s suggested retail price of more than $55,000 for base models.

Singh also pledged to increase the rebate to $10,000 for Canadian-made electric vehicles.

“Buying a car is a major purchase. And Canadians are looking for the best deals they can find — especially when everything costs more,” Singh said in a media statement.

“If you’re buying, buy Canadian. Support Canadian auto workers. Support Canadian auto jobs.”

Right now, the only Canadian-made electric vehicles are the Dodge Charger Daytona and the Chrysler Pacifica plug-in hybrids.

Those vehicles accounted for only 0.3 per cent of all vehicles that received the federal rebate last year. The Charger only started rolling off its Windsor, Ont., production lines within the last few months.

The incentive program proved to be hugely popular in 2024, paying out more than a billion dollars in incentives. The number of vehicles receiving the incentive jumped by more than 50 per cent from 143,124 in 2023.

Quebec car buyers accounted for more than half of all rebates issued in last year, receiving more than $618 million combined.

Some Liberal leadership candidates are also promising to restore the electric vehicle rebate program to some degree.

Karina Gould says she would double the incentives and include gas-hybrid vehicles, while Mark Carney says he would restore the rebate program but limit it to people in low- and medium-income households. Chrystia Freeland has also said Canada should target Tesla with tariffs.

This report by The Canadian Press was first published Feb. 10, 2025.

Nick Murray, The Canadian Press