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Canada has suspended all rebate payments to Tesla and excluded the electric vehicle manufacturer from future incentive programs, according to Transport Minister Chrystia Freeland. The move comes in response to ongoing trade tensions and tariffs imposed by the U.S.
Rebate Payments Frozen Pending Review
Minister Freeland stated that no further rebate payments will be processed until each claim undergoes individual scrutiny to ensure its validity. This decision signals a heightened level of scrutiny regarding Tesla’s compliance with existing rebate program criteria.
Future iZEV Program Eligibility Revised
Transport Canada has been directed to amend the eligibility requirements for upcoming Incentives for Zero-Emission Vehicles (iZEV) programs. These revisions aim to specifically exclude Tesla vehicles as long as the “illegitimate and illegal U.S. tariffs are imposed against Canada,” Freeland noted.
This effectively links Tesla’s participation in Canadian incentive programs directly to the resolution of the trade dispute with the United States.
Trade Tensions Fuel Action
The Canadian government’s actions are a direct response to tariffs imposed by the U.S., with President Trump having introduced significant taxes on goods imported from Canada.
Earlier reports indicated that Tesla had filed a large number of EV rebate claims towards the end of the previous program, raising concerns about potential irregularities.
Past Actions Against Tesla
Ontario previously discontinued financial incentives for Tesla vehicles used as taxis or ride-sharing services, citing trade tensions with the U.S.
Tesla CEO Elon Musk, known for his close ties to Trump, has not yet issued a statement regarding the rebate suspension.