Canada blocks Tesla from all rebate programmes

Following the removal of Tesla from regional rebate programmes across Canada, the Canadian government has now announced a nationwide freeze on all subsidies for Tesla vehicles. Tesla will also be barred from future rebate programmes while US tariffs remain in place.

Canadian Transport Minister Chrystia Freeland said in a statement that no existing applications for rebate payments will be completed until each claim is individually investigated.

Freeland also instructed Transport Canada to block Tesla vehicles from future Incentives for Zero-Emission Vehicles (iZEV) programmes for as long as “illegitimate and illegal US tariffs are imposed against Canada” by the Trump administration. Across Canada, a total of $43m (€39.8m) worth of funds have now reportedly been frozen.

The imposition of national restrictions on Tesla rebates follows a slew of similar initiatives by Canadian provinces. In March, the government of British Columbia announced Tesla charging products are now excluded from its EV charger rebate programme. Similarly, in February, the Mayor of Toronto scrapped incentives for Tesla taxis and limousines. Yesterday, the province of Nova Scotia also announced it is dropping rebates for the Elon Musk-owned company.

The changes have been introduced amid an intensifying trade war between the US and Canada, with Canada’s southern neighbour – its largest trading partner – introducing steep tariffs on Canadian imports.

With Tesla CEO Elon Musk heavily involved in the Trump administration, it appears that the company is being singled out for action in Canada over other US EV makers. Tesla shares have dropped by roughly 50% since December 2025, amid a range of other factors, including growth in the Chinese EV market and a sell-off of shares by major investors.

Earlier this month, Tesla sent a letter to the office of the US Trade Representative warning it about vehicle tariffs, stating that it could damage exports of Tesla EVs due to the risk of counter-tariffs. In the letter, Tesla said: “Past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries. Past US special tariff actions have thus (1) increased costs to Tesla for vehicles manufactured in the United States, and (2) increased costs for those same vehicles when exported from the United States, resulting in a less competitive international marketplace for US manufacturers.”

cbc.ca