Transport Minister Chrystia Freeland claimed she froze federal rebates to punish America, but Tesla vehicles remain eligible for these rebates, reported Blacklock’s. “All vehicles that appear on the list have been deemed eligible under the Incentives For Zero Emission Vehicles Program,” said a department notice. 

The transport department did not clarify which authority Minister Freeland used to "stop all payments for Tesla," noting that several Tesla models were already disqualified due to price increases. 

Eligibility is restricted to 4-wheeled electric vehicles that cost under $55,000 and meet federal safety standards.

Canada quietly stopped its $5,000 rebates for all buyers on January 10, despite funding approved through March 31.

.@CaFreeland faked election claim to @TorontoStar & @CBCNews that she was "freezing" Tesla rebates to punish USA.

Tesla remains on eligibility list.

No comment from @Transport_Gc.  https://t.co/EosgVfepHx #cdnpoli pic.twitter.com/b8RcTNQPe2

— Blacklock's Reporter (@mindingottawa) April 7, 2025

Minister Freeland, according to a March 26 Toronto Star story, ordered a halt to Tesla vehicle payments to investigate the eligibility and validity of each claim.

“No payments will be made until we are confident claims are valid,” said Freeland. “I also directed my department to change the eligibility criteria for future zero emission vehicle programs to ensure Tesla vehicles will not be eligible for incentive programs so long as the illegitimate and illegal U.S. tariffs are imposed against Canada.”

U.S. President Donald Trump announced auto tariffs on March 26, 2025, imposing a 25% levy on imported vehicles and certain auto parts effective April 2, with enforcement details still evolving.

He also enacted 25% tariffs on most Canadian goods starting March 4, followed by additional reciprocal tariffs affecting Canadian exports in early April, some of which are now in effect. In retaliation, Canada reportedly halted $43 million to Tesla and barred it from future programs. 

CBC News and Reuters also reported that Freeland had frozen rebate payments without citing any legal justification. 

Tesla CEO Elon Musk, head of the Department of Government Efficiency, has been leading the White House effort to shrink the federal government and budget.

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