OTTAWA — Liberal leadership candidate Chrystia Freeland says Ottawa should target Tesla vehicles and U.S. alcohol as part of its tariff retaliation package to send a message that an attack on Canadian trade would not be cost-free for Trump's allies.
In an interview with The Canadian Press, Freeland said there should be a 100 per cent tariff on all U.S. wine, beer and spirits, and on all Teslas.
"We need to be very targeted, very surgical, very precise," Freeland said. "We need to look through and say who is supporting Trump and how can we make them pay a price for a tariff attack on Canada."
The move would target Tesla CEO Elon Musk and other power brokers in Trump's orbit, along with powerful lobby groups such as Wisconsin dairy farmers.
Tesla's chief financial officer Vaibhav Taneja warned on an earnings call earlier this week that tariffs could hurt the company's profitability and pointed out that Tesla relies on parts from all over the world.
Musk, the world's richest man and social media mogul, has emerged as a close ally of Trump. He attended the president's swearing-in ceremony this month and played a role in Trump's election campaign this fall, raising some $200 million US through a political action committee. He has also taken on a role in the new administration aimed at slashing government spending and regulations.
Freeland said Canada needs to deliver the message to Trump's closest supporters that if you hit Canada, it will hit back — and it will hurt.
"One of the characteristics of the Trump administration is they like to traffic in uncertainty," she said. "There are lots of reports about there being internal debates in the U.S. (administration), so let's use that to our advantage. And let's put some cards on the table and be very clear that if they hit us, we will hit them back."
Trump suggested Thursday that he still plans to go ahead with his plan to hit Canada and Mexico with 25 per cent across-the-board tariffs on Saturday. Prime Minister Justin Trudeau said Friday that Canada stands ready to respond if Trump acts on his threat.
Freeland repeated her call for the federal government to publish its retaliatory tariff list as soon as possible — and for it to be made larger than Canada's actual list of tariff targets to drive the point home.
"We need to publish it today because there's still time," she said. "This is an existential challenge, and that will be true whether tariffs come on Saturday or whether the threat of tariffs is still hanging over our heads like a sword of Damocles and April 1 is the date."
While Canada has not yet made public its list of targets for retaliatory tariffs, federal officials have selectively leaked certain items on the shortlist, such as orange juice from Florida.
Former finance minister Freeland — who has prior experience with the first Trump administration and who was until last month tasked with spearheading Canada's response to Trump 2.0 — has called for the release of a list of $200 billion in retaliatory tariffs to deter Trump.
In her run for the Liberal leadership, Freeland has sought to define herself as the best person to counter Trump by detailing how she would respond to the tariff threat. She has pitched a "Buy Canadian" procurement policy and has promised to rally provincial premiers and other nations threatened by Trump tariffs.
Rival leadership candidate Mark Carney took a different stance in Halifax this morning. He said Canada shouldn't show any of its cards until the Trump administration actually takes action.
Carney said he doesn't want to say "anything that undercuts" Canadian government officials in talks with the new U.S. administration.
"We have negotiators literally at the front line," he said. "We're not turning over any of our cards face up."
Several federal cabinet ministers, including Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty, were in Washington Friday to make a last-ditch push to convince the Trump administration to back away from the tariff threat.
Carney has sought to leverage his economic credentials as a former Bank of Canada governor to present himself as the best economic steward to replace Trudeau as Liberal leader.
Leadership candidate Karina Gould said Thursday her response to Trump would depend on where Canada stands once she becomes leader.
"We need to see where we are," she said. "I have said very strongly that what we need to do is to be united as a country, and we need to have everything on the table."
Former Liberal MPs Frank Baylis and Ruby Dhalla are also running for the Liberal leadership. The race ends with a vote on March 9.
This report by The Canadian Press was first published Jan. 31, 2025.
Kyle Duggan, The Canadian Press
