Canada has prohibited the electric vehicle (EV) leader Tesla from participating in any rebate initiatives and has barred Texas-based automotive companies from future electric vehicle endeavors due to Trump’s tariffs with Ottawa.
Canada’s Transport Minister Christy Freeland stated In a statement on Tuesday to Reuters that Tesla will not be eligible for the rebate scheme as long as they are affected by “illegal and unlawful U.S. tariffs on Canada.”
Trump imposed significant tariffs on Mexico and Canada three weeks ago but will postpone most until at least April 2nd. The president is set to announce new automobile tariffs on Wednesday, as reported by Bloomberg News.
This week, Canadian Prime Minister Mark Carney called for a New Election, stating, “Automobile components typically cross the border with Canada an average of six times before the final assembly. In the trade conflict, It’s a vulnerability.”
“Now is the moment to enhance local car production utilizing the All-In Canada automobile manufacturing network,” the new prime minister posted on social media platform X on Wednesday.
The action taken by Ottawa will suspend approximately $30 million in rebate funds to Tesla, a firm headed by tech billionaire and Trump advisor Elon Musk.
Prior to the program’s suspension, Tesla submitted a substantial number of rebate applications. One Tesla dealership in Quebec City was initially pursuing a $14 million grant, as reported in the rebate freeze report.
Freeland noted that each of Tesla’s rebate applications submitted before the freeze was reviewed individually prior to approval.
Earlier this month, Tesla cautioned the Trump administration that Tesla and other U.S. exporters might confront retaliatory tariffs amid the intensifying trade conflict initiated by Trump.
“While Tesla acknowledges and endorses the significance of fair trade, we must also account for exports from the USTR, which have been assessed by the USTR regarding potential measures to address unfair trade,” Tesla stated in a letter dated March 11 to Representative Jamieson Greer.
“U.S. exporters are naturally vulnerable to disproportionate impacts when other nations react to U.S. trading practices,” read the unsigned, three-page correspondence.
Oka reached out to Tesla for a statement.
