Caught between a collapse in sales and punishing tariffs, the automaker is making a dramatic pivot, creating a bizarre pricing situation and leaving recent buyers with a serious case of regret.
Tesla is making a desperate move to stay alive in Canada as its sales suffer from the fallout of Donald Trump’s trade war. In a quiet but shocking update to its website, the electric vehicle maker has drastically lowered the price of its best-selling Model Y SUV by a staggering $20,000.
The move is a direct response to a brutal trade dispute that has crippled Tesla’s Canadian operations. In retaliation for tariffs imposed by the Trump administration, Ottawa slapped a 25% surtax on all cars imported from the United States starting on April 9, 2025. Faced with this new cost, Tesla had no choice but to raise the price of a Canadian Model Y to nearly CAD $84,990 (USD $61,500).
The result was catastrophic. According to reports from Electrek, the massive price hike caused demand to completely evaporate, with Tesla’s sales in Canada grinding to a virtual halt in recent months. Tesla, which does not provide sales figures by region and country, saw its overall sales drop by 13.
