Amid growing trade tensions with the United States, Canada is taking drastic measures. Its sights are set on Tesla and Starlink.
Ontario Premier Doug Ford has announced the cancellation of a $100 million Canadian contract with Elon Musk's satellite company Starlink. The move comes after the Trump administration imposed new tariffs on Canadian goods. Ford told a news conference, "It's over, it's over. We will not award contracts to those who encourage economic attacks on our province and our country." He also announced that American companies would now be banned from the province's public tenders, which are estimated to be worth $30 billion a year.
At the same time, Chrystia Freeland, Canada's former deputy prime minister, proposed imposing 100% tariffs on Tesla vehicles imported into Canada. This proposal aims to specifically target economic interests close to the White House, as Elon Musk has become an influential adviser to Donald Trump.
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A growing anti-Musk sentiment
These moves reflect growing anti-Musk sentiment in Canada. Recently, a petition signed by 230,000 Canadians called for Musk’s Canadian citizenship to be revoked, accusing him of “trying to erase Canadian sovereignty.” In response, Musk took to social media to say that Canada was “not a real country,” further inflaming tensions.
The hostility toward Musk and his companies is not limited to Canada. In Europe and the United States, Tesla sales are plummeting. In Australia, they have dropped by 70%. Additionally, Tesla dealerships in the United States have faced a wave of vandalism since Musk became a senior member of the Trump administration.
Freeland’s proposal to open the Canadian market to Chinese electric vehicles could have significant implications for the auto sector. While this could diversify supply and facilitate the transition to zero-emission transportation, Tesla could circumvent some tariffs by relying on its production in China.
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