in our budget four years ago we committed that by 2025 one in 10 cars sold in Canada would be electric and then we got to work we made sure that buying electric cars was more affordable we invested in manufacturing and critical minerals and now more Canadians are buying electric vehicles than ever before we've reached our Target two years ahead of schedule they think that they're going to sell those cars into the United States with no tax at the border we're going to put a 100% tariff on every sing car that comes across the line and
you're not going to be able to sell those cars everybody's going to be forced to buy an electric car which they not going to do because they don't want that it's got a great Market it's got a market it's really a submarket but they want everybody to have an electric car we don't have enough electricity we couldn't make enough electricity for that US president Donald Trump is forging ahead with a bold and Unapologetic overhaul of his administration's trade policy and it's sending shock waves through the long-standing economic partnership between the United States and Canada for
decades these two Nations have been intertwined in a massive trade relationship think automobiles rolling off assembly lines steel beams shaping skyscrapers aluminum fueling manufacturing and even dairy products crossing the border daily in 2023 alone bilateral trade hit over $900 billion with Canada exporting roughly $350 billion worth of goods to the us including more than 60% of its vehicles and a hefty chunk of its Metals but now that relationship has reached a Tipping Point and the tension is palpable Canadians are openly asking with friends like these who needs enemies it's a sentiment that's sparking a heated
debate could Canada really turn its back on the US market redirecting its vehicle and metal exports to forge deeper ties with the European Union and what would that mean for Industries workers and even iconic Brands like Tesla Canadians have a plan and it's shocking Trump's latest move is a doozy he's threatened tariffs as high as 100% on Canadian vehicles and metals a proposal that's left Ottawa stunned and scrambling Canada we have a tremendous deficit with Canada we're not going to have that anymore we can't do it it's it's I don't know if it's good for
them as you probably know I say you can always become a state and if you're a state we won't have a deficit we won't have to tariff you etc etc this isn't just a shot across the bow it's a cannon blast aimed at one of Canada's economic lifelines the US Imports over 2 million canadian-made Vehicles annually think pickup trucks from Ontario plants and SUVs assembled in Quebec alongside millions of tons of steel and aluminum critical for everything from br to beer cans Trump's justification he's hinted at National Security concerns and a desire to protect American
Industries echoing his America First rhetoric from years past some insiders whisper that if these tariffs don't bring Canada to heal even tougher measures could follow perhaps targeting energy exports like oil and natural gas which flow South at a rate of nearly 4 million barrels A Day Canada though isn't rolling over if you pick a fight with us we'll fight back a senior official declared setting the stage for a tit fortat Showdown one Canadian member of Parliament up the antique proposing a 100% tariff on Tesla the electric vehicle Juggernaut led by Elon Musk our retaliation will
be a lot more surgical than that they added signaling a precise strike rather than a scattershot response another politician doubled down saying if Trump's threats continue we'll slap a 100% tax on all Teslas crossing our border why Tesla it's personal and strategic Tesla's not just another car maker it's a crown jewel of American Ingenuity a$1 trillion company that's revolutionized the electric vehicle Market targeting it could ignite a political firestorm in the US especially among musk's vocal supporters giving Canada a powerful bargaining chip plus Tesla's already got skin in the game north of the Border it's
been eyeing Canada's vast mineral reserves for battery production and sells thousands of model 3s and model y's to Canadian buyers each year the idea of hitting Tesla isn't just symbolic it's economic dynamite in 2024 Tesla sold over 50,000 vehicles in Canada a market that's embraced EVS thanks to to generous rebates and a push for greener Tech a 100% tariff would double the price of a $50,000 model y to $100,000 overnight cratering sales and slamming Tesla's North American growth beyond the showroom it could disrupt plans to Source lithium and nickel key battery ingredients from Canadian mines
in places like Sudbury and Manitoba musk himself once called Canada a potential GameChanger for Tesla's supply chain but now that vision's at risk if you impose a 100% tax on me Canada's essentially saying I'll choke your Auto industry and sell these resources elsewhere maybe to Europe or China but can Canada really pivot to the European Union as a viable alternative it's a question that's as practical as it is provocative the US isn't just Canada's biggest Market it's the most convenient one too sharing a 5,500 M border means Goods move fast and cheap trucks haul auto
parts from Windsor to Detroit in hours not days the two economies are so intwined that 75% of Canada's exports worth about $450 billion annually go south replacing that with Europe an ocean away is no small feat shipping a container from Halifax to roddam takes 2 weeks and costs thousands more than a quick jaunt to New York plus the eu's got its own metal and auto producers Germany's Volkswagen and France's Renault aren't exactly desperate for Canadian Imports when they've got local options yet Ottawa is not bluffing when it says it has options the comprehensive economic and
trade agreement signed with the EU in 2017 is a Lifeline it's already slashed tariffs on 98% of goods boosting Canadian EXP reports to Europe by 30% since it took effect think $60 billion in trade by 2024 unlike the US the EU isn't flirting with protectionism its 450 million consumers offer a stable open market Canadian media is buzzing about how Ceda could cushion the blow if Trump follows through our hands aren't tied one Outlet boasted we've got a plan B European leaders agree with some suggesting Canada's trade deals are a breath of fresh air compared to
Trump's tariff threats take steel Canada's exported over 1 million tons to the EU since Ceda kicked in and there's talk of joint green steel projects low carbon production that aligns with Europe's climate goals still analysts caution it's not a slam dunk the EU can't fully replace the US market transport costs are triple what they are to Chicago and Regulatory differences mean Canadian car parts might need retooling to meet EU standards then there's competition Poland and Sweden churn Out Steel and Spain's got its own Auto plants even so Canada's betting it can carve out a niche
minerals are a big draw Europe's EV boom needs lithium and Cobalt and Canada's got plenty in places like Quebec's James Bay Region pair that with ceda's tariff free access and you've got a compelling pitch we're not walking away from the US a trade expert in Ottawa said but we're showing we've got leverage Europe's our Ace in the whole Tesla's caught in the crosshairs of this Brewing trade war and it's no coincidence Beyond its symbolic heft it's a practical Target Canada's been a quiet partner in Tesla's growth supplying raw materials and buying cars and droves a
tariff could kneecap that sending prices soaring installing sales picture a Toronto dealership with unsold Teslas piling up or a Michigan Factory scrambling for nickel now headed to Germany it's not just Tesla though the whole North American Auto industry is at risk under the usmca the rebooted NAFTA steel aluminum and parts crisscross borders daily Canada sends $15 billion in auto parts to the US yearly feeding plants in Ohio and Tennessee a 100% tariff would shatter that jacking up costs for Ford GM and Chrysler too American buyers might see a $30,000 SUV jump to $40,000 while Canadian
Factory towns like Ashawa face layoffs The Fallout wouldn't stop there Mexico's in the mix too its factories churn Out 3 million Vehicles a year many reliant on Canadian steel disrupt that and the whole usmca framework wobbles both sides could lose big us consumers grumbling about price your cars Canadians mourning lost jobs why my truck cost an extra $10,000 an Ohio driver might ask because we shut down our plants a windsor worker might reply yet Trump's Camp insists it's about security keeping jobs and resources at home Canada meanwhile sees it as bullying if you push us
this far they're hinting we'll sell to Europe or Asia instead Asia's a long shot Japan and Korea are far and there's no free trade deal with China the eu's the real Contender ceda's ambitious eliminating tariffs harmonizing rules opening doors Canada's already ramped up metal exports there and Auto Parts could follow imagine German car makers like BMW sourcing steel from Nova Scotia or French EV startups buying lithium from thunderbay it's not as seamless as the US market shipping times stretch to weeks costs climb but it's a Lifeline plus the eu's climate push aligns with Canada's strengths
green steel and Battery minerals could Forge a new partnership if the US doubles down on protectionism Canada and Europe might even form a block sidelining American influence this isn't just a two-way fight the EU could jump in fast-tracking talks with Canada if Trump pushes too hard we'll expedite negotiations a Brussels official mused hinting at a global trade realignment Mexico might lean toward Europe too splitting North America's Unity Canada's playing a long game Global trades shifting they're saying and we're not alone fully ditching the US is risky proximity is too valuable with 2.5 billion in Goods
Crossing daily but Europe's a credible Plan B even if it's not easy competition's Fierce shipping's pricey and the US markets still King don't underestimate US Canada warns we've got options trade Wars rarely Crown winers just bruised losers prices Spike factories close tensions Fester we've seen this before in 2018 Trump's steel tariffs sparked Canadian counter tariffs on $12 billion in US Goods think whiskey and ketchup after months of brinkmanship they compromised could history repeat maybe the US dials back to a 25% tariff Canada skips the Tesla tax and both claim victory or maybe it drags on
with Tesla and consumers paying the price is Canada serious about Europe or is this a bluff to force Trump's hand time will tell but the stakes are Skyhigh for highways Metal Works and Brands like Tesla
