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Canada bars Tesla from rebate program over Trump tariffs

  • Canada has banned Tesla vehicles from future electric vehicle rebate programs due to U.S. tariffs imposed by President Trump, according to Transport Minister Chrystia Freeland.
  • Freeland stated that Tesla's eligibility for rebates will depend on the removal of the U.S. tariffs, which she deemed 'illegitimate and illegal.'
  • A total of C$43 million in payments to Tesla has been frozen as Canada investigates rebate claims submitted in January.
  • Freeland noted that no payments will be made until the government can verify Tesla's rebate claims are valid.
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The government of Mark Carney will not hand over public funds until it confirms the legality of Tesla's operations following the possible fraud with subsidies for electric cars.

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CBC News broke the news in Canada on Wednesday, March 26, 2025.
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