Canada bars Tesla from future EV rebate programs, freezes payments amid Trump tariff war

Core Viewpoint - Canada has banned Tesla vehicles from future electric vehicle rebate programs due to ongoing trade disputes with the U.S., specifically related to tariffs imposed by President Trump [1][8]. Group 1: Rebate Program Changes - Tesla vehicles are ineligible for Canada's electric vehicle rebate program as long as U.S. tariffs remain in place [1]. - Canada has frozen C$43 million ($30.11 million) in pending payments to Tesla, pending review of rebate claims [2]. - The previous rebate program, which offered up to C$5,000 for electric vehicle purchases, was shut down in January due to a lack of funds [2]. Group 2: Claims and Investigations - Tesla dealerships submitted a significant number of rebate claims just before the program ended, with one dealership in Quebec City seeking nearly C$20 million ($14 million) in subsidies [3]. - This surge in claims raised suspicions among Canadian officials regarding the validity of the submissions [3][4]. Group 3: Impact of Tariffs - The ongoing trade dispute and tariffs have negative implications for Tesla, including higher manufacturing costs for vehicles built in the U.S. and increased costs for exported vehicles [9]. - Experts suggest that Tesla and other U.S. automakers are likely to be significantly affected by the tariff battle, impacting their supply chains [6].