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On Tuesday, local time, Canadian Minister of Transport Chrystia Freeland announced that Canada has halted all subsidies for Tesla and barred the company from future participation in electric vehicle subsidy programs. This decision is a direct response to the significant tariffs imposed by the United States on Canadian goods, particularly targeting Tesla due to CEO Elon Musk's close ties with the US government. The Canadian government will undertake a separate investigation into Tesla's subsidies and will withhold payments until the investigation is concluded. Additionally, the eligibility criteria for the Zero-Emission Vehicle Incentive Program will be revised to ensure that Tesla vehicles are ineligible for subsidies as long as the illegal tariffs remain in place.
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