Tesla dealership in Canada. An aerial view of Tesla vehicles sitting in a parking lot on March 20, 2025 in Hamilton, Canada. Getty Images
Canada has barred Tesla vehicles from being eligible for the country's electric vehicle rebate, citing the Trump administration's "illegal U.S. tariffs."
The move is the latest escalation between Canadian lawmakers and the electric car company owned by Elon Musk, one of Trump's closest advisers and advocates.
Newsweek reached out to Tesla via email for comment.
Why It Matters
Some parts of Canada have already placed similar bans on Tesla products, with British Columbia barring the cars from the province's electric rebate policy to "preference Canadian goods." The adoption of this policy on a national level represents a clear escalation in the last few weeks, and it indicates that the conflict between Canada and the Trump administration is not going anywhere.
What To Know
In a statement released on Tuesday, Transport Minister Chrystia Freeland said that Tesla would be banned from all of Canada's electric vehicle rebate programs and that any outstanding payments to Tesla owners would be paused.
Freeland said the policy was going into effect due to the tariffs the United States placed on Canada, which she described as "illegitimate and illegal."
"As soon as I became Transport Minister, I asked the department to stop all payments for Tesla vehicles in order to fully examine each claim individually and determine whether all are eligible and valid. No payments will be made until we are confident that the claims are valid," Freeland said.
Freeland instructed Transport Canada, the county's transportation department, to bar Tesla from future "Incentives for Zero-Emission Vehicles" programs, further restricting the electric car company.
The opposition to Tesla in Canada extends beyond politicians. Dealerships have been facing grassroots protests nationwide, with activists angry about Musk's support for Trump and his tariffs.
Last weekend, over 80 vehicles were damaged at a Tesla dealership in Ontario. Police reported that dozens of cars had their tires punctured and bodywork scratched.
In Montreal, protesters sprayed paint on another dealership and then sat outside the building. Other protests in Langley and Edmonton saw over a dozen activists gather outside dealerships voicing opposition to Musk.
What People Are Saying
British Columbia Premier David Eby said in a statement that the decision to bar the company from rebate policies was "just for Tesla, and it's because of Elon Musk."
"I think that if British Columbians heard that C$10,000 of taxpayer money was going to Elon Musk, they'd want to throw up, so we removed them from the program."
Elon Musk told Sean Hannity earlier this month : "Tesla is a peaceful company; we've never done anything harmful, I've never done anything harmful; I've always done productive things. So there's some kind of mental illness thing going on because this doesn't make any sense."
What Happens Next
New U.S. tariffs against Canada will take effect on April 2. Reactions to the Trump administration are expected to dominate the Canadian election.
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This story was originally published March 26, 2025 at 10:05 AM.
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