Canada freezes rebate payments to Tesla, bars it from future programs due to tariffs

Thomson Reuters

· Posted: Mar 25, 2025 8:47 PM EDT | Last Updated: 2 minutes ago

Canada has frozen each rebate payments for Tesla and banned the electric-vehicle shaper from aboriginal EV rebate programs, Transport Minister Chrystia Freeland said connected Tuesday.

No rebate payments volition beryllium made until each assertion is individually investigated and determined to beryllium valid, Freeland said successful an emailed connection shared by her office.

Freeland besides directed Transport Canada to revise eligibility requirements for aboriginal Incentives for Zero-Emission Vehicles (iZEV) programs to guarantee that Tesla vehicles are not eligible arsenic agelong arsenic the "illegitimate and amerciable U.S. tariffs are imposed against Canada."

Tesla did not instantly respond to a Reuters petition for comment.

U.S. President Donald Trump has imposed a slew of tariffs, with the bulk owed successful aboriginal April, successful the signifier of 25 per cent taxes connected astir goods from Canada.

Trump connected Monday said automobile tariffs are coming soon, though not each of his threatened levies would beryllium enforced connected April 2 arsenic antecedently indicated.

Canada has frozen $43 million in rebate payments for Tesla. The bid to halt the payments came earlier Liberal Leader Mark Carney announced a wide predetermination would instrumentality spot April 28, according to the Toronto Star, which reported the quality earlier.

The Star reported earlier this period that Tesla filed an bonzer fig of EV rebate claims successful the last days of the programme successful January, with a azygous Tesla dealership successful Quebec City claiming astir $20 cardinal successful nationalist subsidies by documenting much than 4,000 electrical conveyance income implicit a azygous weekend.

Ontario stopped providing fiscal incentives for Teslas purchased arsenic taxis oregon thrust shares due to the fact that of commercialized tensions with the U.S. earlier this month.

Tesla CEO Elon Musk, a adjacent state of Trump, has been starring the White House effort to shrink the national authorities and fund arsenic the caput of the Department of Government Efficiency.