Toronto removes EV incentives for Tesla amid US-Canada trade war

Investing.com-- Toronto- Canada’s most populous city- will no longer provide financial subsidies for Tesla (NASDAQ:TSLA) vehicles purchased for use as taxis or ride shares amid an ongoing trade feud with the U.S., Mayor Olivia Chow said on Monday. 

The city has been steadily promoting EV adoption for commercial use by providing drivers with relief in licensing and renewal fees, to help bring down emissions. 

But Tesla will no longer be subject to such incentives, Chow said at a news conference, with the exclusion to continue until trade tensions with the U.S. are resolved. 

“We are giving incentives for people to migrate into electric cars, except we will stop giving financial incentives to Tesla,” Chow said, noting that there were “other electric cars” around. 

“If you want to buy Tesla, go ahead, but don’t count on taxpayer money to subsidize it.” 

As a broader retaliation against U.S. tariffs, Toronto will also severely clamp down on government tenders being awarded to U.S. companies. 

Canada retaliated with import duties and other measures against U.S. President Donald Trump’s imposition of 25% trade tariffs against the country. Canada’s biggest provinces and cities also enforced their own anti-U.S. measures, with Ontario threatening to impose a surcharge on electricity exports to the U.S.

Tesla is already grappling with a deteriorating brand image and calls for boycotts, especially over CEO Elon Musk’s ties to the Trump administration. Trump had recently purchased a Tesla during an event at the White House, as a show of support for Musk. 

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