Model Y prices rise sharply ahead of Juniper release as Trump tariffs set to take effect in Canada

Model Y prices rise sharply ahead of Juniper release as Trump tariffs set to take effect in Canada
Model Y prices rise sharply ahead of Juniper release as Trump tariffs set to take effect in Canada

With Tesla set to announce pricing and release date for the 2025 Juniper Model Y for North America, possibly as soon as this week, potential buyers are likely to be faced with much lower prices. raised in the United States and Canada.

In the United States, the Model Y Juniper can be sold without the $7,500 tax credit, as the new Trump administration has called for a pause on all electric vehicle subsidies until the end of a 90-day review period. Following this review, the responsible federal agencies must make recommendations on whether the U.S. government should end the new EV tax credit and subsidies for charging infrastructure, with a high probability of doing so.

Starting February 1, fans of Tesla’s Model Y, the best-selling in Canada, will also wake up to much higher prices. Tesla Canada announced that it is increasing the price of the Model Y by CA$4,000 (approximately US$2,790), and that of the Model 3 Long Range AWD or Performance by CA$8,000 and CA$9,000, respectively .

Coincidentally, February 1 is the effective date of the Trump administration’s new punitive tariffs against Canada and Mexico, and Canada has promised to return the favor by imposing taxes on import on American products. Tesla could therefore preemptively increase the prices of all versions of the Model Y by almost three thousand dollars, and the prices of the Model 3 by twice that amount.

Canadian consumers are also at a rather disadvantageous position as Tesla buyers, since their own federal electric vehicle rebate already expired last year, and the Canadian dollar has fallen precipitously against the US dollar since the threat of tariffs loomed on the horizon.

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To make matters worse, Tesla has priced the 2025 Model Y Juniper a bit higher than its predecessor, at least in China.

If Tesla does the same in North America, early adopters are in for a rather unpleasant surprise after a year of discounts and promotions that saw the price of the Model Y plummet to nearly $35,000 with all the rebates and freebies that Tesla implemented.

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