Canada is banning cars made by Elon Musk Tesla from future electric vehicle rebates programs as the country is engaged in a tough trade dispute with President Trump, state Transport Minister Krishstia Freeland said.
Freeland said Tuesday that Tesla vehicles are not eligible for the rebate program, as long as “illegal and illegal US tariffs are imposed on Canada.”
According to a Freeland statement, Canada is also investigating a surge in rebate claims made by carmakers just before the country shuts down existing rebate programs, except that it bans Tesla from future incentive programs. Retrieved by Reuters.
In total, Canada has frozen $43 million ($30.11 million) in pending payments to Tesla.
Freeland said payments will not be completed until each submission has been reviewed and determined to be valid.
In January, Canada closed its current version of its rebate program, which offers payments of up to $5,000 for electric vehicle purchases due to a lack of funds.
Tesla sellers file a wave of claims just before the program ends, with one Quebec City dealer seeking a $20 million subsidy ($14 billion).
This amounted to 4,000 vehicles sold per weekend, a huge number that sparked suspicion among officials.
The Toronto star first reported Regarding the claims of rebate.
Tesla representatives did not immediately return a request to post comments.
The move is worse news for Musk, who has gone through intense scrutiny over the past few months for his job as Trump-backed government efficiency department. He also served as a key adviser to Trump, who slapped 25% tariffs on goods imported from Canada and Mexico.
Tesla dealers around the US are fighting a wave of vandalism and arson incidents, leading President Trump to warn that such actions would be treated as domestic terrorism.
Experts point out that Tesla and other US automakers are likely to be hit hardest in Trump's customs battle. This is because almost every part of the supply chain is affected, from material sourcing and production to sales.
Tesla pushed the Trump administration to consider the impact of tariffs on US companies in a letter to the US Trade Representative earlier this month.
At the time, Tesla warned that the state could be “exposed to” “disproportionate effects” as it imposed retaliatory tariffs.
“For example, past trade actions by the United States have led to immediate responses by target countries, including increased tariffs on imported EVs into these countries,” Tesla said.
Negative effects include an increase in manufacturing costs for Tesla vehicles built in the US and an increase in costs for export vehicles sold overseas.
With post wire
