Elon Musk Preempts Trump Tariffs by Raising Tesla Prices in Canada

Tesla will start raising the prices of all its models in Canada starting February 1, as the Model 3 will increase by $9,000 Canadian ($6,254.78 US).

The Model Y will also see increases of up to $4,000 Canadian, while all versions of the Model S and Model X will increase by $4,000 Canadian, according to what the American company announced in a statement carried by Yahoo Finance.

It is noteworthy that Tesla does not manufacture cars in Canada, but rather imports them from its factories abroad, and it is not yet clear how many cars Tesla exports to Canada from its factory in Shanghai, China, or from its facilities in the United States.

This unexpected move by Tesla to raise prices comes at a time when outgoing Canadian Prime Minister Justin Trudeau confirms that his government is ready to confront if US President Donald Trump imposes 25% tariffs on imports from Canada and Mexico on February 1.

Canada already has a 100% tariff on electric car imports from China, including Shanghai-made Teslas, and Trump has threatened to impose sweeping tariffs on Canada, Mexico and other trading partners.