Key Takeaways:

• Canada has frozen all rebate payments to Tesla and banned it from future EV rebate programs.
• The decision is attributed to the "illegitimate and illegal U.S. tariffs" imposed by President Trump.
• Transport Minister Chrystia Freeland stated that payments will remain paused until claims are individually verified.
• Protests against Tesla have emerged in Canada, fueled by public discontent over Elon Musk's ties to Trump.
• Canadian Prime Minister Mark Carney has invoked the need for a home-grown automotive industry amid trade tensions.

Canada has officially ceased all rebate payments for Tesla and barred the electric vehicle manufacturer from future rebate programs, according to Reuters. Transport Minister Chrystia Freeland announced this decision, citing U.S. tariffs considered to be "illegitimate and illegal" under the Trump administration's trade policies.

The move reflects escalating tensions between Ottawa and Washington following significant tariffs imposed on Canadian goods, which President Trump announced three weeks ago. Trump’s decision to implement a steep 25% tariff has been met with considerable backlash in Canada, prompting Freeland to direct a thorough review of Tesla's rebate claims before any payments are made. Approximately C$43 million (around $30 million) in payments to Tesla are currently on hold.

Freeland emphasized, "No payments will be made until we are confident that the claims are valid." The Canadian government is reaffirming its commitment to fair trade practices amidst the backdrop of trade crises affecting the automotive sector, where parts can cross the Canada-U.S. border multiple times before final assembly.

The escalation of this policy signifies a broader trend, with British Columbia also having barred Tesla vehicles from its own rebate programs to "preference Canadian goods," as noted in Newsweek. Reports indicate that grassroots protests against Tesla have intensified across the nation, reflecting public dissatisfaction with Musk's affiliation with Trump and the financial implications for Canadian taxpayers. Activists recently targeted Tesla dealerships in Ontario and Montreal, causing damage and demonstrating their growing frustrations.

Prime Minister Mark Carney, who recently announced a forthcoming election, articulated the need for a self-sufficient automotive manufacturing network within Canada, urging national production amid ongoing trade strife. "It's time to build more cars right here at home," Carney stated.

As tensions continue to simmer, Tesla's future in Canada remains uncertain, with discussions about U.S. tariffs expected to dominate public discourse leading into the Canadian elections. The potential repercussions on cross-border trade and electric vehicle adoption are looming concerns in light of these developments. For more information, visit The Hill.