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.
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Tesla has told the Delaware Supreme Court that Elon Musk’s $56 billion pay package should have been restored last year through a shareholder vote, as the company appeals a lower court ruling that rescinded the CEO’s record compensation.
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Cambodia must be the first to declare a ceasefire in the ongoing border conflict, Thailand said on Tuesday (16 December), as fighting continued despite earlier claims that hostilities would stop and at least 52 people have been killed on both sides.
Schools across Cambodia and Thailand were forced to close on Monday (15 December) as border clashes between the two countries escalated, with the death toll reaching at least 40 and hundreds of thousands of people displaced, according to officials and local media.
U.S. President Donald Trump confirmed that his administration is examining whether Israel violated the Gaza ceasefire agreement by conducting an airstrike on Saturday (13 December) that killed Hamas leader Raad Saad.
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