Manitoba government boots Tesla from EV rebate program as part of budget's 'elbows up' commitment

Kristin Annable · CBC News

· Posted: Mar 20, 2025 8:13 PM EDT | Last Updated: 7 minutes ago

The Manitoba authorities is warring backmost successful the ongoing commercialized warfare with the United States by ending its provincial parks walk declaration with a Texas-based institution and kicking electrical vehicles made by Elon Musk's institution Tesla retired of its rebate program.

Those moves were portion of Thursday's $25.9-billion provincial budget, successful which the NDP authorities besides pledged an further $500,000 to its export enactment programme to assistance Manitoba businesses diversify their income beyond the United States.

The changes are portion of "Trump-proofing our economy," said Finance Minister Adrien Sala, who announced successful his fund code that a provincial rebate volition nary longer beryllium disposable for radical who acquisition a Tesla oregon immoderate electrical vehicles manufactured successful China.

"It's portion of our government's committedness to beryllium elbows up," Sala told reporters during a fund briefing Thursday.

"[U.S. President] Donald Trump is creating a historical menace to our economy."

Last week, Trump deed Canada with 25 per cent tariffs connected alloy and aluminum. He has said he plans to implement additional levies connected April 2.

The Manitoba fund announced Thursday besides included a worst-case script program the state tin instrumentality if the tariffs continue, which included hundreds of millions of dollars of further wealth to enactment the agriculture assemblage and to assistance businesses, among different measures.

As portion of its response, Manitoba won't proceed its declaration with Aspira, a Texas-based steadfast that was contracted successful 2020 to merchantability passes online for Manitoba provincial parks. That declaration is acceptable to extremity successful April and won't beryllium renewed, the authorities said Thursday.

While it searches for a Canadian vendor, the state volition marque entry to each provincial parks free this year, opening April 1, which it estimates volition mean forfeiting almost $3 cardinal successful revenue.

According to the budget, implicit $5 cardinal has gone to the Texas steadfast since it began administering the parkland passes. 

Meanwhile, portion the authorities is pledging $14.8 cardinal to proceed its electrical conveyance rebate program this year, Teslas and Chinese EVs volition beryllium excluded.

Manitobans can presently get a $2,500 rebate connected the acquisition of a utilized EV oregon plug-in hybrid, and $4,000 for a caller vehicle. As of January, the state had already paid retired astir $10 cardinal successful rebates since the programme was introduced past July.

To beryllium eligible, vehicles indispensable beryllium purchased oregon leased from Manitoba dealerships, with a maximum manufacturer's terms of $70,000. Currently, determination are six Tesla models that are eligible for the rebate. None of the vehicles connected the province's existent database are from Chinese manufacturers.

The state hasn't said erstwhile the alteration to the program will instrumentality effect.

The retaliation against the car company owned by Musk — a adjacent state of Trump who besides heads up the  newly created Department of Government Efficiency — follows akin moves in other provinces. In Ontario, Toronto metropolis assembly has approved a alteration that temporarily makes recently manufactured Teslas ineligible for grant backing from the city's zero emanation conveyance for prosecute program.

And B.C. Hydro announced past week that it is excluding Tesla products from its electrical conveyance charger rebate programme successful effect to U.S. tariffs.

'Government is doing the close thing': Chamber CEO

But University of Winnipeg economist Philippe Cyrenne questioned the contented of targeting Tesla and China by excluding their vehicles from the provincial EV rebate. Politicizing the response to tariffs "usually doesn't enactment retired well," helium said.

"It's not wide wherefore Manitoba is pursuing suit" with Democrats successful the U.S. connected the pushback against Musk, helium told CBC Thursday.

"Six months agone we were celebrating radical who bought a Tesla," Cyrenne said, but now, they person go "persona non grata."

Tesla did not instantly respond to a petition for comment. 

Lauren Stone, the concern professional for the Opposition Progressive Conservatives, said she supports buying Canadian, but thinks the authorities shouldn't power what radical purchase.

"I americium not a instrumentality of the authorities interfering successful Manitobans' purchasing decisions," she said. "I deliberation we should beryllium encouraging section and expanding our export markets, but that should beryllium up to Manitobans and their pocketbooks."

Winnipeg Chamber of Commerce CEO Loren Remillard said the determination against Chinese EVs is appropriate, given a 100 per cent levy connected Canadian canola lipid and meal, positive a 25 per cent work connected seafood and pork enacted by China this week.

"We are successful a planetary commercialized quality close now, and I deliberation it behooves Manitoba and each governments crossed Canada to marque definite we are Canada-first," helium said. 

"The authorities is doing the close happening by sending a wide connection that we are going to thin successful to bargain Canadian. "