Politics

NDP wants tariffs on Teslas and a $10K made-in-Canada EV rebate

The NDP made new election commitments on Monday: imposing tariffs on Tesla electric vehicles, bringing back the federal EV rebate and doubling it if consumers buy a Canadian-made plug-in car.

Party says it would reinstate federal program for electric vehicles if elected

A man's face is seen close-up.
NDP Leader Jagmeet Singh says if his party forms government, it would promote the purchase of made-in-Canada EVs and place tariffs on Teslas. (Sean Kilpatrick/The Canadian Press)

The NDP made new election commitments on Monday: imposing tariffs on Tesla electric vehicles, bringing back the federal EV rebate and doubling it if consumers buy a Canadian-made plug-in car.

NDP Leader Jagmeet Singh is on a campaign-style swing in Canada's automotive capital and border town: Windsor, Ont.

Singh told reporters that if Trump follows through with his threat to apply a tariff to all Canadian goods, a New Democrat federal government would slap a 100 per cent trade tax on all Tesla products.

Tesla is the world's leading manufacturer of EV batteries and other tech related to electric vehicles. Its CEO, Elon Musk, is one of Trump's top deputies, leading the Department of Government Efficiency.

"Elon Musk has been very loud. Very vocal attacking our country. We're not going to let that stand. So if you are going to take a shot at us, we're going to fight back," Singh told reporters.

"So Elon Musk thinks he can tweet off whatever he wants. Yeah, we're going to put a tariff on him. I want that to be something that impacts him."

Canada already places a 100 per cent tariff on EVs from China.

WATCH | Singh proposes slapping tariffs on Teslas: 

Singh says he wants to send a message to Elon Musk with tariffs on Tesla

15 hours ago
Duration 1:02
NDP Leader Jagmeet Singh said Monday that he wants to put a 100 per cent tariff on Tesla vehicles. ‘We want to make it very clear that if you pick a fight with us, we are going to fight back,’ Singh said. He also proposed bringing in a $10,000 rebate for electric vehicles made in Canada.

Singh also said the New Democrats would support consumers committing to buy products made domestically, particularly expensive purchases.

"We want to make it easier for Canadians to make that choice," Singh said. "So if you're making a big purchase like buying a car, probably one of the biggest purchases in your life, we want to support Canadians when buying Canadian by bringing back the rebate on electric vehicles."

The NDP proposes reinstating the federal electric vehicle rebate and increasing it to $10,000.

Like all cars, EVs range wildly in price — with the entry level in Canada around $40,000 and luxury models north of $180,000, according to the Canadian Automobile Association. Canada and provinces like Quebec and British Columbia have EV sales mandates.

In January, the federal government announced that the Incentives for Zero-Emission Vehicles (iZEV) program would be "paused" ahead of its scheduled March end date, as funds were running out due to a "surge of interest."

The program offered customers up to $5,000 toward an EV purchase. Some provinces and territories continue to offer EV rebates of their own.

Brian Masse, the NDP auto strategy and Canada-U.S. border relations critic, said the party is going on the "offensive" as Canada faces the threat of the Trump tariffs.

"There's no doubt Canadians are worried. We are worried as well, but we can't sit around and wait," Masse said.

ABOUT THE AUTHOR

David Thurton

Senior reporter, Parliamentary Correspondent

David Thurton is a senior reporter in CBC's Parliamentary Bureau. He covers daily politics in the nation’s capital and specializes in environment and energy policy. Born in Canada but raised in Trinidad and Tobago, he’s moved around more times than he can count. He’s worked for CBC in several provinces and territories, including Alberta and the Northwest Territories. He can be reached at david.thurton@cbc.ca

With files from Anand Ram