The first Tesla vehicles from Giga Berlin have arrived in Canada, as the company shifts away from US-made Model Ys, in response to current tariffs.
The information was reported by Reddit user ‘ChampionshipMean628,’ who shared images of several Model Ys at the Dartmouth Autoport in Halifax, Nova Scotia.
As Canadian customers have already started receiving their Vehicle Identification Numbers (VINs), deliveries are expected to take place in the following weeks.
It marks the first time that Tesla Canada imports directly from an European factory.
This is not, however, the first time that Canadians receive vehicles produced outside of North America.
In mid-2023, Reuters reported the company briefly imported Model Ys from China’s Giga Shanghai.
The company typically imports its vehicles from the US, where it is not only headquartered but also where it has its main production — specifically, California’s Gigafactory in Fremont.
The ongoing trade war spiked by Donald Trump earlier this year has changed the scenario.
As the US imposed a 35% tariff on Canada in early August, the country has retaliated with a 25% rate on several imports — which includes vehicles.
The 2020 United States-Mexico-Canada Agreement (USMCA), signed in 2020, requires the states to exempt tariffs on certain imported goods.
According to US Commerce Secretary Howard Lutnick, “USMCA parts will not carry tariffs, no change in that approach.”
Auto parts that meet USMCA rules don’t have to pay the 25% tariff, however, Canadian-manufactured vehicles that don’t qualify for duty-free trade under USMCA had their tariff raised from 25% to 35%.
Regarding Europe, the two blocs have come together in the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), signed in 2016, that eliminated most tariffs on Canadian imports into the region.
It is not in full force yet, as not all EU states have ratified the agreement. However, it is already applied in the states that have adopted it — which includes Germany, since early 2023.
As the country deals with the pressure from the tariffs, Tesla Canada has slashed the price of the best-selling Model Y in mid-July.
The Model Y Long Range All Wheel Drive (AWD) is priced from C$64,000 ($46,300), C$20,000 down from C$84,990 ($61,500).
At the same time, Tesla opened orders for its refreshed Model S and Model X flagships, which have been revamped a month earlier.
The Model S is priced from C$139,990 ($101,500), while the Model X SUV’s prices begin at C$149,990 ($107,700).
Last week, CBC Canada reported that the Government was reportedly halting the Electric Vehicle Availability Standard (ZEV) set by former Prime Minister Justin Trudeau, as it reevaluates the policy on EV adoption targets.
The move was one of the several measures that Prime Minister Mark Carney’s government is announcing to help automakers navigate the tariff climate, as the US implements country-specific tariffs on imports.
