Canada has found an unusual way to respond to US tariffs. Thus, Tesla buyers in Canada will no longer be eligible for government subsidies when purchasing electric vehicles.
Transport Minister Chrystia Freeland announced that the country had deliberately changed its criteria for EV incentive programs to ensure that Tesla, and by extension, Elon Musk, would not benefit. Until the US removes what Canada deems “illegal and unjustified tariffs,” Tesla will remain an unwelcome guest in the Canadian auto market.
Although the decision was made earlier this month, it appears Canadian officials opted to give Musk time to adjust to a future without Canadian perks.
Meanwhile, Tesla is already going through a rough patch. In February, its European sales plummeted by a staggering 40%. Musk has since urged employees not to rush into selling their shares, despite a nearly 50% drop in stock value over the past three months. He warned that the company is currently facing a real storm and even suggested that “paid agitators” may be working against Tesla.
Whether Tesla can navigate its way out of this downturn or if Canada’s silent boycott becomes another thorn in Musk’s side remains to be seen. However, one thing is clear. Canada’s response leaves no room for ambiguity—tariffs come at the cost of incentives.
