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TPP and Tesla in Canada

Discussion in 'Canada' started by wayner, Oct 5, 2015.

  1. wayner

    wayner Active Member

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    No that it looks like the TPP is going through will this have any impact on Tesla's import tariffs? The TPP does seem to cover Autos but I haven't seen detail on how it applies to import tariffs. Or will it take a few years for the TPP to get rolled out and by then the gigafactory will be up and running so Tesla's vehicles will no longer be subject to tariffs?
     
  2. rypalmer

    rypalmer Member

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    "Canada’s 6.1 per cent tariff on imported vehicles will be phased out over 5 years" - Canada reaches TPP trade deal, will pay out $4.3-billion to farmers - The Globe and Mail

    The tariff of 6.1% is currently imposed on Tesla vehicles due to high foreign content (batteries mostly). This will go away, but probably not before the Gigafactory comes online, which would have taken care of it anyway.
     
  3. green1

    green1 Active Member

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    Not to mention, at this point I still don't think we're paying full exchange rate for our vehicles, so I suspect Tesla will simply roll it in to profit to help cover our incredibly low dollar.
     
  4. Doug_G

    Doug_G Lead Moderator

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    Tesla currently just barely misses the 60% requirement, so this will help... except by the time it phases in the Gigafactory will be up and running so the cars would qualify anyway.

    In practice it will likely have no impact.
     
  5. Paul Carter

    Paul Carter Active Member

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    Trans-Pacific Partnership (TPP) trade deal: 5 year phase out of 6.1% tarriff

    The deal indicates that imports with at least 45 per cent for vehicles and 40-45% for auto parts (made in a TPP member country) will no longer have the tariff.

    Canada’s 6.1 percent tariff is planned to be phased out is as follows:

    5.5%, 5%, 2.5%, 2%, and 0%.

    Canadian parliament will vote on the deal at some point after the election. The USA administration will seek to get it through Congress in 2016. But its also an election year in the USA, so that might delay theirs.
     
  6. wayner

    wayner Active Member

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    Does this mean that the tariff will go immediately for cars with enough TPP content and phased out for other non-TPP countries, or does it mean that the phase out is for vehicles from TPP countries?
     
  7. Paul Carter

    Paul Carter Active Member

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    Its meant for just TPP cars and will slowly be phased out once ratified. As said up-thread, by the time this is done the Model S/X might already meet the NAFTA requirement (with Gigafactory battery content) well before this phase out. Might be a slight overlap if ratified quickly, but only going down by 0.6% in the first year.
     

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