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.
Tesla’s new car sales in Europe plunged 27.9% in May, even as the region saw a major rise in demand for electric vehicles, data from the European Automobile Manufacturers Association (ACEA) showed.
Tesla has begun a small-scale robotaxi trial in Austin, Texas, deploying about 10 self-driving cars to pick up paying passengers in a limited area, as the state enacts new regulations for autonomous vehicles.
Tesla has secured a major agreement to build its first grid-scale battery storage station in China, local media outlet Yicai reported Friday.
Tesla’s shares declined by about 14.2% on Thursday, reducing the company’s market value by roughly $152 billion, as Elon Musk and Donald Trump publicly exchanged criticisms on social media.
Tesla’s car sales in the UK plummeted by over 45% in May 2025, as growing political backlash and stronger competition impact the brand’s market share despite a booming electric vehicle sector.
Liverpool have officially announced the signing of Hungarian international Milos Kerkez from AFC Bournemouth, as part of the club’s strategic efforts to reinforce their defensive line ahead of the 2025–26 campaign.
India and Russia have discussed the timely delivery of the remaining S-400 air defence systems and upgrades to Su-30 fighter jets, alongside broader defence cooperation, during a key meeting at the SCO summit in China.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
India’s Defence Minister Rajnath Singh has urged China to work toward a permanent resolution of their border dispute, emphasizing the need to rebuild trust after the 2020 military clash.
Nike is stepping back from China-based production for its U.S. market to dodge tariff-related costs, aiming to shift its sourcing strategy by 2026.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
Wizz Air has suspended all flights to and from Tel Aviv, Israel, and its European services to Amman, Jordan, effective immediately until 15 September due to escalating situation in the Middle East. Also, the air carrier temporarily suspended its flights between Astana, Kazakhstan, and Abu Dhabi.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
The U.S. Embassy in Qatar has advised American citizens to shelter in place amid rising tensions between Israel and Iran, as part of a broader global security alert issued by Washington.
In a televised address on Saturday night, U.S. President Donald J. Trump announced that American forces, in coordination with Israel, had conducted precision strikes on Iran’s Fordow, Natanz, and Isfahan nuclear sites, aiming to dismantle Tehran’s enrichment capabilities.
Nike is stepping back from China-based production for its U.S. market to dodge tariff-related costs, aiming to shift its sourcing strategy by 2026.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
Shell has denied reports that it is in talks to acquire BP in a historic £60 billion deal, despite ongoing market speculation about a potential merger between the two oil giants.
Universal’s new theme park in Bedford, UK has secured a government support package worth around £500 million ($686 million) for rail and road upgrades, as part of a wider package to boost infrastructure ahead of the park’s planned 2031 opening.
Australia will not raise its defence spending targets despite pressure from U.S. President Donald Trump, choosing instead to follow its own military strategy, Defence Minister Richard Marles said on Thursday.
Liverpool have officially announced the signing of Hungarian international Milos Kerkez from AFC Bournemouth, as part of the club’s strategic efforts to reinforce their defensive line ahead of the 2025–26 campaign.
India and Russia have discussed the timely delivery of the remaining S-400 air defence systems and upgrades to Su-30 fighter jets, alongside broader defence cooperation, during a key meeting at the SCO summit in China.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
India’s Defence Minister Rajnath Singh has urged China to work toward a permanent resolution of their border dispute, emphasizing the need to rebuild trust after the 2020 military clash.
Nike is stepping back from China-based production for its U.S. market to dodge tariff-related costs, aiming to shift its sourcing strategy by 2026.
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