Toronto Excludes Tesla From EV Incentives Amid Trump Tariff War: Mayor Says, 'Don't Count On Taxpayer Money'

Toronto has taken a significant step by excluding Tesla Inc. TSLA vehicles from its electric vehicle incentives, citing the ongoing trade war with the United States. This decision, led by Mayor Olivia Chow, reflects the city’s stance on the trade conflicts.

What Happened: Toronto has halted financial incentives for Tesla vehicles used as cabs or for ride sharing purposing, citing trade conflicts with the United States, according to Reuters on Monday.

Under Mayor Olivia Chow’s leadership, the city is promoting electric vehicle use by lowering licensing and renewal costs for ride-hailing vehicles through 2029. However, from March 1, Tesla models are excluded from these benefits. Chow explained that drivers must seek alternative electric vehicles.

The exclusion remains until U.S. trade issues are resolved. Chow attributed the decision to Elon Musk, Tesla’s CEO and adviser to U.S. President Donald Trump. Trump’s tariffs on Canadian goods have fueled tensions, prompting this symbolic move.

“We have certainly said that if you want to buy a Tesla, go ahead, but don’t count on taxpayer money to subsidize it,” said Chow, according to the report.

Tesla has reportedly not commented on Toronto’s move. The financial impact is minimal, according to the mayor.

See Also: Trump Says He Was ‘Little Bit Sarcastic’ When He Said He Would End The Russia-Ukraine War In A Day: ‘What I Really Mean Is…’

Why It Matters: This move by Toronto is part of a broader trend in Canada where Tesla is facing increasing challenges. Recently, Tesla’s charging stations and home batteries were excluded from rebate programs in British Columbia, also due to U.S.-Canada trade tensions.

Additionally, Tesla has been suspected of manipulating Canada’s EV rebate program, with reports of a sudden surge in sales before a rebate deadline, as detailed in another Benzinga article.

Moreover, public sentiment in Canada is shifting against Tesla, with a recent poll indicating that 71% of Canadians support a ban on Tesla sales. This growing discontent is further evidenced by a petition to revoke Elon Musk’s Canadian citizenship, which has gathered significant support.

Canada is imposing 25% tariffs on $20 billion of U.S. goods in retaliation for Trump's steel and aluminum duties, affecting multiple industries. The move adds to previous counter-tariffs, raising concerns over economic instability, rising costs, and disruptions in housing and manufacturing.

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal