The Canadian government implemented decisive measures regarding Tesla by suspending all rebates to the EV manufacturer and discontinuing its participation in future EV rebate programs. Transport Minister Chrystia Freeland introduced the new measures on Tuesday because of ongoing trade tensions and U.S. tariffs.

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Freeland's office stated that rebate payment processing for Tesla will stop until every claim needs individual investigation and successful validation. Under Canadian government orders the transport department modified future iZEV program eligibility standards to eliminate Tesla vehicles from participating throughout "illegitimate and illegal U.S. tariffs" periods.

The government of Canada has yet to hear from Tesla regarding its decision.

The U.S. presidential administration led by Donald Trump established major 25% tariffs that will affect most products from Canada and Mexico during early April. Trump has suggested small loopholes but the American tariff campaign against Canada and Mexico continues unabated.

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The Canadian government has stopped distributing CAD 43 million (USD 30.11 million) that Tesla received through its rebate program. Northern Irish newspapers reported about Prime Minister Mark Carney's election announcement on April 28th after Canada stopped making financial payments.

The Toronto Star reported that a Quebec City Tesla dealership filed a mass number of rebate applications worth almost CAD 20 million to obtain public funding for 4,000 vehicle sales during one weekend in late January.

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Toronto made this decision after its previous decision to deny incentives for taxis and ride-sharing services because of trade disputes between Toronto and the U.S.

The relationship between President Trump and Tesla CEO Elon Musk creates additional issues because of his involvement in the White House's goal to lower federal expenditures.

Canada's decision to freeze rebates and exclude Tesla from future programs underscores the escalating trade tensions between the two nations and the potential impact on the automotive industry. The investigations into past rebate claims signal a commitment to ensuring the integrity of the program.