Canada has suspended Tesla rebate payments and barred the automaker from future EV incentives due to U.S. tariffs. Transport Minister Chrystia Freeland said the freeze will remain until claims are individually reviewed.
The Canadian government has taken a firm stance against Tesla, freezing approximately C$43 million ($30.11 million) in rebate payments and barring the electric vehicle manufacturer from future incentive programs. The decision comes as part of Canada’s response to newly imposed U.S. tariffs on Canadian goods, which Transport Minister Chrystia Freeland described as "illegitimate and illegal."
Freeland stated that the transport department will revise eligibility requirements for upcoming iZEV programs, ensuring that Tesla vehicles do not qualify as long as the U.S. tariffs remain in place. The government will also investigate each existing rebate claim before processing any payments.
Tesla has not yet responded to requests for comment regarding the policy shift. The move follows reports by the Toronto Star that Tesla dealerships in Canada, particularly in Quebec, filed a high volume of rebate claims in the final days of the program in January. One dealership alone reportedly accounted for nearly C$20 million in subsidies by documenting over 4,000 sales in a single weekend.
The rebate freeze also comes amid broader trade tensions between Canada and the U.S. U.S. President Donald Trump recently announced sweeping tariffs, including a 25% tax on most Canadian and Mexican goods, set to take effect in early April. Trump has also hinted at forthcoming automobile tariffs, although it remains unclear if all proposed levies will be enforced by the anticipated April 2 deadline.
Adding to the friction, some Canadian cities, including Toronto, have ceased offering financial incentives for Tesla vehicles used in taxi or ride-sharing services due to escalating trade disputes. Meanwhile, Tesla CEO Elon Musk, a known ally of Trump, has been actively involved in White House efforts to streamline federal government operations through the Department of Government Efficiency.
The rebate suspension and Tesla’s exclusion from future incentive programs underscore the growing impact of trade policies on the EV industry, with potential implications for both automakers and consumers in Canada.
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has s...
Georgia has unveiled a new funding model for public universities, highlighting the different ways higher education is financed across the South Caucas...
Romania blasted a rock outcrop to redirect cooling water from the drought-hit Danube River to its only operating nuclear reactor. The unprecedented me...
U.S. President Donald Trump says Iran has a "last chance" to sign what he described as "a good document", claiming talks are continuing at Tehran's request with backing from Saudi Arabia, the UAE and Qatar.
U.S. President Donald Trump said late on Saturday he would hold off on a fresh attack on Iran as long as a deal could be reached quickly to halt Iran's nuclear ambitions and reopen the Strait of Hormuz.
Indonesian rescue teams are searching for 28 people still unaccounted for, three days after a passenger ferry caught fire off the coast of Madura island.
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has said. Iran refrained from taking action after Kyiv said the strike was a mistake, Mohsen Rezaei told the state IRIB TV channel.
Two firefighting helicopters collided while battling a major wildfire in Greece on Sunday, killing two crew members as emergency services continued efforts to contain fires fuelled by extreme heat and dry conditions across Europe.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
SK Hynix reported record quarterly profit on Wednesday, but its shares slumped 10 per cent after the South Korean chipmaker fell short of investor expectations built around the artificial intelligence (AI) boom.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
Paramount Skydance agreed to pause its acquisition of Warner Bros Discovery until after a ruling on a challenge by states to the deal, plunging the $110 billion deal into further uncertainty.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment