Last month, it was announced the 2021 Polestar 2 would carry a base price of $59,900 in the United States.
At the time, the head of Polestar USA said the price was “lower than we originally targeted.” However, fans were quick to point out that the Tesla Model 3 Performance starts at $56,990. The Model 3 range actually kicks off at $39,990 (Tesla slyly says “$33,190*”, with the asterisk meaning it has subtracted potential incentives and gas savings of $6,800).
Fast forward to this week and Polestar Canada revealed the model would cost $69,900 CAD, which is the equivalent of $49,775 USD. While there’s always some price difference between countries, it was pretty shocking the Canadian model was more than $10,000 USD cheaper despite being virtually identical.
Also Read: New Polestar 2 Priced From $69,900 CAD In Canada, $10,000 USD Less Than In The States!
However, a lot of that blame can be directed at the ongoing trade war between the U.S. and the People’s Republic. The Polestar 2 is built in Luqiao, China, and that means it’s subject to a 27% import tariff in the United States. That cost gets passed onto consumers and this helps to explain why the model is so much more expensive in the States. It’s also worth mentioning the tariff goes to the U.S. government and isn’t being paid by China, no matter how many times U.S. President Trump incorrectly claims that.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
While the United States and China did sign a Phase One trade deal earlier this year, it only lowered tariffs on some imports. Additional cuts were expected in future deals, but the response to the coronavirus has taken precedence and Trump has blamed China for not containing the virus and for not being transparent about it.
This has hampered relations between the two countries and the President recently tweeted “We just made a great Trade Deal, the ink was barely dry, and the World was hit by the Plague from China. 100 Trade Deals wouldn’t make up the difference – and all those innocent lives lost!” As a result of this hostility, tariffs on Chinese vehicles could remain high for the foreseeable future.
As I have said for a long time, dealing with China is a very expensive thing to do. We just made a great Trade Deal, the ink was barely dry, and the World was hit by the Plague from China. 100 Trade Deals wouldn’t make up the difference – and all those innocent lives lost!
— Donald J. Trump (@realDonaldTrump) May 13, 2020