This Canadian regulation will complicate Tesla’s business

After the United States decided to quadruple tariffs on imported Chinese electric cars, Canada is considering it too.

Are Chinese Teslas about to disappear in Canada? It certainly seems to be shaping up that way, and it’s very bad news for the California-based manufacturer.

Let’s rewind the story. Historically, Teslas sold in Canada were manufactured in the United States due to geographic proximity and nearly identical legislation to facilitate trade. Getting a car approved there was especially simple.

However, with the alarming drop in Tesla sales in China, the American manufacturer has no choice but to boost exports from its Shanghai factory. Europe, Australia, South America, Tesla is searching everywhere for markets for its cars produced in China. One of its solutions was to change the origin of the Tesla Model 3 and Model Y in Canada. Out with the US versions, in with the Made in China.

Political courage

However, this decision has spotlighted the trade imbalance between Canada and China regarding electric cars. Just days after the United States paved the way for a wave of protectionism against Chinese electric cars by increasing tariffs from 25% to 100%, Canada is set to follow suit.

Advanced discussions are now leading to a significant increase in tariffs on Chinese electric cars as well. This is a real challenge for Tesla, which will have to rethink its supply logistics, re-approval processes, and more.

And then, where will all these Chinese Teslas go now that Canada will no longer absorb them? The Chinese puzzle grows bigger every day for Tesla.

When will there be the same political courage – and ecological common sense – in Europe to re-industrialize the Old Continent?

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